Market Round
• EU agrees on need for special trillion-euro fund
• Investors looking for medical response to coronavirus
•Oil prices extend tentative rebound
• UK March Core Retail Sales (MoM) -3.7%,-3.5% forecast, -0.5% previous
• UK March Core Retail Sales (YoY) -4.1%,-4.7% forecast, 0.4% previous
• UK March Retail Sales (MoM) -5.1%, -4.0% forecast, -0.3% previous
• UK March Retail Sales (YoY) -5.8%,-4.7% forecast, 0.0% previous
• German April Business Expectations 69.4, 75.0 forecast, 79.5 previous
• German April Current Assessment 79.5, 81.0 forecast, 92.9 previous
• German April Ifo Business Climate Index 74.3, 80.0 forecast, 85.9 previous
• Russia April Interest Rate Decision 5.50%, 5.50% forecast, 6.00% previous
Looking Ahead - Economic Data (GMT)
• US March Core Durable Goods Orders (MoM) -5.8% forecast,-0.6% previous
• US March Durable Goods Orders (MoM) -11.9% forecast, 1.2% previous
• US March Durables Excluding Defense (MoM) 0.1% previous
• Belgium April NBB Business Climate -21.0 forecast, -10.9 previous
• Russia March Unemployment Rate 4.8% forecast, 4.6% previous
• US April Michigan 5-Year Inflation Expectations 2.50% , 2.30% previous
• US April Michigan Consumer Expectations 70.0 forecast, 79.7 previous
• US April Michigan Consumer Sentiment 68.0 forecast, 89.1 previous
• US April Michigan Current Conditions 72.4 forecast, 103.7 previous
• Canada Feb Budget Balance 0.42B previous
• Canada Feb Budget Balance (YoY) -10.56B previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro strengthened against dollar on Friday as euro was supported after EU leaders agreed to build a emergency fund to help states recover from the pandemic, but gave no details of the size, speed and structure of the package. The leaders agreed late Thursday in principle to a 1.5 trillion-euro rescue package to share the economic cost of the pandemic, which is falling disproportionately on southern European states. A decision on the details of the programme was delayed until the summer. Immediate resistance can be seen at 1.0792 (5 DMA), an upside break can trigger rise towards 1.0865 (11 DMA).On the downside, immediate support is seen at 1.0735 (lower BB), a break below could take the pair towards 1.0700 (Psychological level).
GBP/USD: Sterling slipped against the dollar on Friday after data showed the biggest drop in British retail sales on record, adding to fears about the economic impact of the coronavirus pandemic. Official figures showed sales volumes fell by 5.1% in March, reflecting the hit from the coronavirus shutdown which closed many businesses in the second half of the month.The fall, which was bigger than a median forecast for a drop of 4.0% in a poll of economists, came despite a surge in shopping for food. Immediate resistance can be seen at 1.2357 (5 DMA ), an upside break can trigger rise towards 1.2435 (11 DMA).On the downside, immediate support is seen at 1.2218 (Lower BB), a break below could take the pair towards 1.2200 (Psychological level ).
USD/CHF: The dollar dipped against Swiss franc on Friday as doubts about progress in the development of drugs to treat COVID-19 and new evidence of U.S. economic damage caused by the coronavirus pandemic. Report showed that Gilead Sciences Inc’s antiviral drug remdesivier had failed to help severely ill COVID-19 patients in its first clinical trial. At (GMT 12:15), greenback was up 0.43% versus the Swiss franc to 0.9757. Immediate resistance can be seen at 0.9793 (Daily high), an upside break can trigger rise towards 0.9861 (300 DMA).On the downside, immediate support is seen at 0.9717 (5 DMA), a break below could take the pair towards 0.9684 (11 DMA).
USD/JPY: The dollar declined against the Japanese yen on Friday as demand for riskier assets weakened by lockdown extensions in parts of the world to curb the spread of the novel coronavirus, and a report that the latest COVID-19 experimental drug flopped in a clinical trial. Horrid business activity data from the United States and the euro zone also added to the gloom as it reminded investors of the economic damage inflicted by the pandemic. Strong resistance can be seen at 107.87 (21 DMA), an upside break can trigger rise towards 109.05 (Higher BB).On the downside, immediate support is seen at 107.37 (Daily low), a break below could take the pair towards 107.00 (Psychological level).
Equities Recap
European shares tumbled on Friday on fears of a severe and lasting economic hit from the coronavirus pandemic after a report raised doubts about progress in developing a treatment for COVID-19.
At (GMT 12:15),UK's benchmark FTSE 100 was last trading down at 0.81 percent, Germany's Dax was down by 0.84 percent, France’s CAC was last down by 0.63 percent.
Commodities Recap
Gold eased on Friday as investors booked profits after a 1% rise in the previous session, but weak economic data from the United States and Europe due to the novel coronavirus kept bullion on track for a weekly gain.
Spot gold slipped 0.4% to $1,724.05 per ounce by 0619, but was up over 2.3% for the week so far.
Oil prices were broadly steady on Friday but headed for their third weekly loss as production shutdowns failed to keep pace with sliding demand due to the coronavirus crisis.
Brent crude was up 18 cents, or 0.84%, to $21.51 at 1043 GMT, having risen 5% on Thursday, while U.S. oil was steady at $16.50 a barrel, after rising 20% the day before. Both contracts traded within a range of around $2 a barrel.
Treasury Recap
Southern European bond yields fell on Friday, reversing an early rise, although a cautious tone in markets remained ahead of a S&P Global ratings review of Italy’s debt later in the day.
Italy’s 10-year bond yield was last down 6 basis points, at 1.95%, having risen sharply in early days. Short-dated bond yields, which had jumped as much as 12 bps earlier, were a touch lower.
The Italian/German 10-year bond yield spread, which had widened to as much as 256.10 bps early on Friday, narrowed to 240.8 bps, still 3 bps wider on the day.
