Market Roundup
- OPEC further cuts oil demand outlook
- Media report: Signs of success in a COVID-19 treatment drug trial
Economic Data Ahead
- (0500 ET/0900 GMT) EZ Consumer Price Index (MoM)(Mar)
- (0500 ET/0900 GMT) EZ Consumer Price Index - Core (YoY)(Mar)
- (0500 ET/0900 GMT) EZ Consumer Price Index - Core (MoM)(Mar)
- (0500 ET/0900 GMT) EZ Consumer Price Index (YoY)(Mar)
- (0600 ET/1000 GMT) EZ Construction Output s.a (MoM)(Feb)
- (0600 ET/1000 GMT) EZ Construction Output w.d.a (YoY)(Feb)
Key Events Ahead
- No Significant Events Scheduled
FX Beat
DXY: The dollar consolidated after rising to a 1-week peak in the prior session on U.S. President Donald Trump's proposed guidelines under which U.S. state governors could act to revive the U.S. economy from its coronavirus shutdown. The greenback against a basket of currencies traded 0.1 percent down at 99.81, having touched a high of 100.30 on Thursday, its highest since Apr. 8.
EUR/USD: The euro rebounded from a 1-week low hit in the previous session, as the greenback slightly eased amid heightened worries over the worst recession in decades. Data released on Thursday showed Eurozone industrial production dipped slightly in February, due to reverses in the capital and consumer durable goods. The European currency traded 0.3 percent up at 1.0866, having touched a high of 1.0990 on Wednesday, its highest since April 1. Investors’ attention will remain on a series of economic data from the Eurozone economies and EZ consumer price index, amid a lack of economic data from the U.S. docket. Immediate resistance is located at 1.0889 (21-DMA), a break above targets 1.0913 (5-DMA). On the downside, support is seen at 1.0820, a break below could drag it below 1.0806.
USD/JPY: The dollar declined, halting a 2-day winning streak after data out from China showed the country’s economy shrank for the first time since at least 1992 in the first quarter due to outbreak. However, the downside appears limited as signs of success in a COVID-19 treatment drug trial as well as early plans to re-open the U.S. economy drove fresh optimism and risk appetite. The major was trading 0.1 percent down at 107.79, having hit a low of 106.92 on Wednesday, its lowest since Apr. 1. Investors’ will continue to track the broad-based market sentiment, as U.S. economic calendar reanis absolutely empty. Immediate resistance is located at 108.22 (10-DMA), a break above targets 108.42. On the downside, support is seen at 107.21, a break below could take it near at 106.92.
GBP/USD: Sterling steadied after falling to a 1-week low in the prior session, as the UK government said the novel coronavirus outbreak was starting to peak but it would be too early to lift a country-wide lockdown. The British government is currently discussing a review of social distancing measures with the announcement of a further three-week lockdown expected. The major traded 0.2 percent up at 1.2475, having hit a high of 1.2647 on Tuesday, it’s highest since March 12. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2536, a break above could take it near 1.2580. On the downside, support is seen at 1.2420 (10-DMA), a break below targets 1.2392. Against the euro, the pound was trading up at 86.97 pence, having hit a high of 86.81 on Tuesday, it’s highest since Mar. 10.
AUD/USD: The Australian dollar rose, supported by hopes for successful treatment of COVID-19, the respiratory disease caused by the coronavirus. The Aussie trades 0.3 percent up at 0.6317, having hit a high of 0.6444 on Tuesday, it’s highest since Mar. 12. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6398, a break above could take it near 0.6429. On the downside, support is seen at 0.6299, a break below targets 0.6262 (10-DMA).
Equities Recap
Asian shares surged as President Donald Trump’s plans to gradually reopen the U.S. economy.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 2.6 percent.
Tokyo's Nikkei surged 3.1 percent to 19,897.26 points, Australia's S&P/ASX 200 index rallied 1.3 percent to 5,487.50 points and South Korea's KOSPI gained 3.1 percent to 1,914.53 points.
Shanghai composite index rose 0.6 percent to 2,836.42 points, while CSI 300 index traded 0.9 percent up at 3,837.00 points.
Hong Kong’s Hang Seng traded 1.8 percent higher at 24,438.21 points. Taiwan shares added 2.1 percent to 10,597.04 points.
Commodities Recap
Crude oil prices declined after OPEC again slashed its forecast for global oil demand this year due to the coronavirus outbreak. The Organization of the Petroleum Exporting Countries expects global demand to contract by 6.9 million barrels per day, or 6.9 percent, in 2020. International benchmark Brent crude was trading 0.7 percent lower at $28.20 per barrel by 0512 GMT, having hit a high of $36.37 last week, its highest since March 11. U.S. West Texas Intermediate was trading 0.3 percent down at $19.72 a barrel, after falling as low as $19.27 on Wednesday, its lowest since Feb. 2002.
Gold prices tumbled as optimism over initial plans to reopen the U.S. economy lifted risk appetite, although heightened worries over the worst recession in decades kept the safe-haven metal on track for its second straight weekly rise. Spot gold eased 0.6 percent to $1,706.11 per ounce by 0518 GMT, having touched a high of $1,747.72 on Tuesday, its highest since Nov. 2012 and was up about 0.9 percent for the week so far. U.S. gold futures slipped 0.7 percent to $1,719.80 per ounce.
Treasuries Recap
On Thursday, the U.S. 10-year and 30-year yields dropped to two-week lows, while those on two-year notes slid to a new three-year trough. The yield curve continued to flatten.
