Market Roundup
• UK Halifax House Price Index (YoY) 3.0%,2.8% previous
• UK March Halifax House Price Index (MoM) 0.0%, 0.1% forecast, 0.2% previous
• Italian Feb Retail Sales (MoM) 0.8%,0.1% previous
• Italian Feb Retail Sales (YoY) 5.7%, 1.5% previous
• UK Labour Productivity (Q4) 0.3%,0.3% previous
• US March NFIB Small Business Optimism 96.4, 104.5 previous
Looking Ahead - Economic Data (GMT)
• 14:00 US IBD/TIPP Economic Optimism 53.9 previous
• 14:00 US Feb JOLTs Job Openings 6.600M forecast, 6.963M previous
• 14:00 Canada March Ivey PMI n.s.a 53.2 previous
• 14:00 Canada March Ivey PMI 41.0 forecast, 54.1 previous
• 14:30 New Zealand GlobalDairyTrade Price Index -3.9% previous
•19:00 US Feb Consumer Credit 14.00B forecast, 12.02B previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro strengthened against dollar on Tuesday as broad dollar weakness boosted euro. The greenback the world’s reserve currency has swung wildly in recent weeks in volatile trading. But action by central banks to ease a mad scramble for dollars has helped bring some calm to markets. The dollar was last down 0.6% versus a basket of currencies, mirroring improved risk sentiment across equity markets, with European shares up for a second straight day. The euro was last trading 1.08 % higher to $1.0908.Immediate resistance can be seen at 1.0927 (9 DMA), an upside break can trigger rise towards 1.0978 (50 DMA).On the downside, immediate support is seen at 1.0872 (5 DMA), a break below could take the pair towards 1.0800 (Psychological level).
GBP/USD: Sterling rose against dollar on Tuesday as increased risk appetite encouraged some selling of the dollar, while traders awaited news on British Prime Minister Boris Johnson, who is fighting worsening coronavirus symptoms in intensive care. Johnson, 55, was moved into an intensive care unit in a London hospital late on Monday after his condition had deteriorated rapidly over the preceding 24 hours. His foreign minister is deputizing for him to lead the government’s response to the outbreak. Immediate resistance can be seen at 1.2400 (30 DMA), an upside break can trigger rise towards 1.2450 (2nd April high).On the downside, immediate support is seen at 1.2249 (11 DMA), a break below could take the pair towards 1.2164 (21 DMA).
USD/CHF: The dollar declined against the Swiss franc on Tuesday on tentative signs the coronavirus crisis may be levelling off in New York and receding in Europe. Worldwide, the virus has infected more than 1.3 million people and killed over 74,000, and the numbers are rising even as swathes of the globe are under lockdown. Hope stems though from hardest-hit Italy and Spain, where authorities have started looking ahead to easing lockdowns after steady falls in coronavirus-related fatality rates. Immediate resistance can be seen at 0.9737 (100 DMA), an upside break can trigger rise towards 0.9811 (200 DMA).On the downside, immediate support is seen at 0.9666 (9 DMA), a break below could take the pair towards 0.9618 (30 DMA).
USD/JPY: The dollar edged lower against the Japanese yen on Tuesday as Japanese Prime Minister Shinzo Abe declared a state of emergency for parts of the country to counter the spread of coronavirus. The country is to impose a state of emergency in Tokyo and six other prefectures as early as Tuesday to contain the coronavirus, while the government prepares a $990 billion stimulus package to soften the economic blow. The dollar dipped 0.14% against the Japanese currency to 109.04 yen. Strong resistance can be seen at 109.43 (Daily high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.75 (50 DMA), a break below could take the pair towards 108.28 (5 DMA).
Equities Recap
European shares rallied for a second straight day on Tuesday with investors focusing on early signs that the coronavirus pandemic may be easing, even as major companies took steps to shore up cash.
At (GMT 13:46),UK's benchmark FTSE 100 was last trading up at 3.81 percent, Germany's Dax was up by 3.70 percent, France’s CAC was last up by 2.71 percent.
Commodities Recap
Gold prices fell 1% on Tuesday, retreating from a one-month high hit earlier in the session as risk sentiment improved on wider market optimism after there were tentative signs of progress against coronavirus outbreaks in some countries.
Spot gold was down 0.5% at $1,653.25 per ounce by 1024 GMT after rising to a one-month high of $1,671.40. The metal had risen as much as 2.8% on Monday.
Oil prices clawed their way into positive territory on Tuesday as hopes that the world’s biggest producers will agree to cut output outweighed analyst fears that a global recession in the wake of the coronavirus crisis could be deeper than expected.
Brent crude was up 88 cents, or 2.66%, at $33.93 a barrel by 1137 GMT after falling more than 3% on Monday. West Texas Intermediate (WTI) crude was up 79 cents, or 3.03%, at $26.87, having dropped nearly 8% in the previous session.
Treasury Recap
German government bond yields rose on Tuesday with euro zone finance ministers due to meet later in the day to discuss a joint response to help member countries deal with the economic impact of the novel coronavirus.
German government bond yields rose 7-10 basis points across the curve, with the long-dated 30-year bond up 10 bps at 0.06%, its highest since March 27.
