Market Roundup
• U.S. weekly jobless claims data due at 1230 GMT
• World Bank, IMF back debt relief for developing nations
• UK March Nationwide HPI (YoY) 3.0%,2.0% forecast, 2.3% previous
• UK March Nationwide HPI (MoM) 0.8%,-0.1% forecast, 0.3% previous
• Swiss March CPI (MoM) 0.1%,0.1% forecast, 0.1% previous
•Swiss March CPI (YoY) -0.5%,-0.5% forecast, -0.1% previous
• Spanish Unemployment Change 302.3K, -7.8K previous
• EU Feb PPI (MoM) -0.6%,-0.2% forecast, 0.2% previous
• EU Feb PPI (YoY) -1.3%,-0.7% forecast, -0.7% previous
Looking Ahead - Economic Data (GMT)
• 12:30 US Continuing Jobless Claims 4,882K forecast, 1,803K previous
•12:30 US Exports 208.60B previous
• 12:30 US Imports 253.90B previous
• 12:30 US Initial Jobless Claims 3,500K forecast, 3,283K previous
• 12:30 US Jobless Claims 4-Week Avg 998.25K previous
• 12:30 US Feb Trade Balance -40.00B forecast, -45.30B previous
• 12:30 Canada Feb Exports 47.70B forecast, 48.14B previous
• 12:30 Canada Feb Imports 49.00B forecast, 49.61B previous
• 12:30 Canada Feb Trade Balance -1.87B forecast, -1.47B previous
• 13:00 Russia Central Bank Reserves (USD) 551.2B previous
•13:45 US March ISM NY Business Conditions 51.9% previous
•13:45 US March ISM-New York Index 867.9 previous
•14:00 US Feb Durables Excluding Defense (MoM) 0.1% previous
•14:00 US Feb Factory Orders (MoM) 0.2% forecast, -0.5% previous
•14:00 US Feb Factory orders ex transportation (MoM) -0.1% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fx Beat
EUR/USD: The euro declined against dollar on Thursday as uncertainties over the coronavirus pandemic kept the safe-haven greenback strong against other major currencies. The U.S. dollar held firm, as investors unnerved by the massive disruption to global trade caused by the pandemic took comfort from holding cash dollars.The dollar index against a basket of six major currencies stood flat at 99.470 after a gain of 0.53% overnight as the U.S. currency advanced against most of its major peers. The euro dipped 0.47 % to $1.0903 after a 0.69% fall on Wednesday. Immediate resistance can be seen at 1.0993 (50 DMA), an upside break can trigger rise towards 1.1038 (21 DMA).On the downside, immediate support is seen at 1.0907 (Ichimoku Cloud Base), a break below could take the pair towards 1.0835 (23.6%fib).
GBP/USD: Sterling strengthened against dollar on Thursday as the British currency rebounded further after crashing last month amid coronavirus-driven panic on money markets. Sterling has benefited broadly in recent weeks from co-ordinated action by central banks including the Bank of England to ease a mad scramble for U.S. dollars, the world’s most liquid currency seen as a safe haven in times of crisis. This has eased selling pressure on other major currencies, including the pound. Immediate resistance can be seen at 1.2517 (38.2% fib ), an upside break can trigger rise towards 1.2779 (23.6% fib).On the downside, immediate support is seen at 1.2300 (50 DMA), a break below could take the pair towards 1.2234 (31st March ).
USD/CHF: The dollar edged higher against the Swiss franc on Thursday as investors rushed to the security of the world's most liquid currency. The market is getting more concerned about the impact to growth globally . After dismal manufacturing data from around the world had knocked sentiment on Wednesday, U.S. weekly jobless claims data due later in the day will be the next to measure impact on growth. Last week, claims had jumped to 3.3 million from 282,000 in the week before. At (GMT 12:15), Greenback was up 0.22% versus the Swiss franc to 0.9675. Immediate resistance can be seen at 0.9705 (11 DMA), an upside break can trigger rise towards 0.9739 (100 DMA).On the downside, immediate support is seen at 0.9605 (5 DMA), a break below could take the pair towards 0.9500 (Psychological level).
USD/JPY: The dollar was little changed against the Japanese yen on Thursday as investors braced for more signs of economic pain in the world’s largest economy, ahead of another likely record week of jobless claims. With hopes growing that the worst of the outbreak may have passed for China and South Korea, the mood was less bleak than on Wall Street, which plunged overnight. U.S. labour market data will likely provide the next test of market sentiment and of the visible pain in the real economy. Initial claims for jobless benefits last week probably surpassed the week-ago record of 3.3 million, with 3.5 million expected. Strong resistance can be seen at 107.56 (5 DMA), an upside break can trigger rise towards 108.17 (30 DMA).On the downside, immediate support is seen at 106.66 (38.2% fib), a break below could take the pair towards 106.00 (Psychological level).
Equities Recap
European shares bounced on Thursday, driven by a recovery in energy stocks on rising hopes of a truce in the Saudi-Russia oil price war, but worries about the coronavirus pandemic lingered ahead of another expected surge in U.S. jobless claims data.
At (GMT 12:15),UK's benchmark FTSE 100 was last trading up at 0.75 percent, Germany's Dax was up by 0.26 percent, France’s CAC was last up by 0.63 percent.
Commodities Recap
Gold prices inched up on Thursday, following a rally in the previous session, as fears about a coronavirus-led steep slump in global economic activity lent support to the metal as a safe-haven asset.
Spot gold gained 0.1% to $1,592.56 per ounce by 0011 GMT, having risen 1.2% in the previous session. U.S. gold futures rose 0.9% to $1,605.
Crude oil futures jumped 10% on Thursday after U.S. President Donald Trump said he expected Saudi Arabia and Russia to reach a deal soon to end their oil price war.
Brent crude futures rose more than 11% in early trade. By 1032 GMT, Brent was up 10.75%, or $2.66, to $27.40, while U.S. West Texas Intermediate (WTI) crude futures rose 10.09% or $2.05, to $22.36.
Treasury Recap
Euro zone government bond yields rose on Thursday as some investors moved back into riskier assets, with demand for new bonds issued by Spain and France expected to offer a gauge of current market sentiment.
The 10-year German government bond yield rose 4 basis points to -0.426%, pulling away from the lows of -0.55% touched on Monday.
