Market Roundup
• Fed and ECB to meet later this week
• Oil price slump extends losses
• France Jobseekers Total 3,488.6K, 3,245.6K previous
Looking Ahead - Economic Data (GMT)
• 12:30 Canada Feb Foreign Securities Purchases 17.01B
• 12:30 Canada Feb Foreign Securities Purchases by Canadians -9.10B previous
• 13:00 Russian Feb Real Wage Growth (YoY) 5.5%,6.5% previous
• 13:00 Russian Retail March Sales (YoY) 2.6%,4.7% previous
• 13:00 Russian March Unemployment Rate 4.8%, 4.6% previous
• 13:00 Russian GDP Monthly (YoY) -0.7% forecast,2.9% previous
• 14:30 US April Dallas Fed Mfg Business Index -70.0 previous
Looking Ahead - Events, Other Releases (GMT)
• No Major events scheduled
Fxbeat
EUR/USD: The euro gained against dollar on Monday after credit rating agency S&P reaffirmed on Italy’s BBB rating. Credit rating agency S&P reaffirmed on Friday Italy’s BBB rating, in spite of what many had expected a downgrade supporting the common currency as this limits the escalation of an economic and political crisis on the continent. At, (GMT 12:00), the euro was last trading up 0.2% at $1.0850. Immediate resistance can be seen at 1.0863 (11 DMA), an upside break can trigger rise towards 1.0883 (21 DMA).On the downside, immediate support is seen at 1.0800 (Psychological level), a break below could take the pair towards 1.0750 (Lower BB).
GBP/USD: Sterling rose against dollar on Monday as sterling was boosted by improving global risk appetite and hopes that lockdown measures may start to be eased as the number of coronavirus cases in Britain appears to slow. Britain is now seeing a downward trend in the number of people who are in hospital with the new coronavirus, the national medical director of England’s health service said on Sunday. The pound against a broadly weaker dollar,was up 0.4% at $1.2435. Immediate resistance can be seen at 1.2458 (Higher BB), an upside break can trigger rise towards 1.3050(55 DMA).On the downside, immediate support is seen at 1.2351 (5 DMA), a break below could take the pair towards 1.2240(lower BB).
USD/CHF: The dollar was little changed against the Swiss franc on Monday as investors waited to see what the U.S. Federal Reserve and European Central Bank will do help the global economy stave off a deep depression. The Bank of Japan expanded monetary stimulus on Monday for the second straight month to ease corporate funding strains and finance huge government spending aimed at combating the deepening economic fallout from the coronavirus pandemic. The Fed meeting will end Wednesday and the ECB meets on Thursday. At (GMT 12:29), Greenback last traded at 0.05% versus the Swiss franc to 0.9729. Immediate resistance can be seen at 0.9761 (21 DMA), an upside break can trigger rise towards 0.9780 (Higher BB).On the downside, immediate support is seen at 0.9692 (20 DMA), a break below could take the pair towards 0.9685 (50 DMA).
USD/JPY: The dollar declined against the Japanese yen on Monday after Japan removed limits on its government bond purchases and increased corporate debt buying to help companies hit by the coronavirus crisis.The BOJ’s decision was widely in line with expectations, so traders instead shifted their focus to a U.S. Federal Reserve meeting ending Wednesday and a European Central Bank (ECB) meeting Thursday as major central banks once again take the stage as the global economy battles against a deep depression. Strong resistance can be seen at 110.50 (11 DMA), an upside break can trigger rise towards 111.00(Psychological level ).On the downside, immediate support is seen at 107.03 (Daily low), a break below could take the pair towards 107.60 (Lower BB).
Equities Recap
European shares rose on Monday, as airline stocks soared on hopes of state support, while a slew of upbeat earnings added to optimism over signs many countries would soon ease tough lockdown measures.
At (GMT 12:15),UK's benchmark FTSE 100 was last trading lowerat 1.67 percent, Germany's Dax was down by 2.61 percent, France’s CAC was last up by 1.97 percent.
Commodities Recap
Gold slipped on Monday as signs that countries may soon ease coronavirus-driven lockdowns lifted risk sentiment, although its losses were limited by hopes of more stimulus measures from major central banks.
Spot gold was down 0.6% at $1,716.33 per ounce by 0954 GMT. U.S. gold futures were little changed at $1,735.90.
Oil prices fell on Monday on concerns about scarce storage capacity and global economic doldrums from the coronavirus pandemic.
U.S. West Texas Intermediate June futures fell $2.42, or 14.3%, to $14.52 a barrel by 0830 GMT.
Brent crude was down 90 cents, or 4.2%, at $20.54 a barrel. The June Brent contract expires on Thursday.
Treasuries Recap
Italian government bond yields dropped between 14 and 17 basis points across the curve on Monday after S&P Global left the debt-laden country’s credit rating unchanged in investment grade territory late on Friday.
Italy’s benchmark 10-year bond yields were lower 16 basis points at 1.73% on the first day of trading after the decision, while the closely-watched spread over German bond yields dropped to its tighest level in over a week, at 218 bps
