America’s Roundup: Dollar gains as investors seek shelter amid pandemic crisis, Wall Street gains, Gold rises, Brent hits 18-year low, U.S. crude dips below $20/bbl-March 31st,2020
Asia Roundup: Aussie eases despite PBoC interest rate cut, greenback rebounds across board as U.S. House passes $2.2 trillion bill, Asia shares plunge - Monday, March 30th, 2020
America’s Roundup: Dollar edges higher as investors wait on fiscal stimulus,Wall Street surges, Gold gains, Oil little changed as falling demand offsets hopes of U.S. aid package-March 25th,2020
America’s Roundup: Dollar index on track for biggest weekly fall in decade, Wall Street tumbles, Gold eases, Oil plunges more than 5% despite stimulus efforts-March 28th,2020
Europe Roundup: Sterling gains as traders shun safe-haven dollar, European shares dip, Gold slips, Oil falls as demands fears outweigh stimulus efforts-March 27th,2020
Europe Roundup: Euro gains as ECB removes barriers in crisis fighting purchases, European stocks drop, Gold dips, Oil falls as sinking demand outweighs stimulus hopes-March 26th,2020
Asia Roundup: Aussie at 1-week peak on more stimulus hopes, greenback rebounds from recent lows as panic selling eases, Asian shares surge - Friday, March 27th, 2020
Asia Roundup: Aussie retreats from 1-week peak, dollar declines against yen as investors scurried for liquid cash, Asian shares volatile - Thursday, March 26th, 2020
Asia Roundup: Japanese yen steadies amid fears of worsening coronavirus pandemic, greenback erases losses after Fed announces temporary repo facilities for central banks, Asian shares plunge - Wednesday, April 1st, 2020
America’s Roundup: Dollar drops as U.S. jobless claims surge, Wall Street rallies for third day, Gold edges higher, Oil prices sink as crippled demand outweighs stimulus hopes-March 27th,2020
Asia Roundup: Aussie steadies as investors expect RBA to hold rates, greenback holds firm on Fed comments, Asian shares nudge higher - Monday, April 6th, 2020
Europe Roundup: Euro jumps on dollar weakness, European shares turns choppy, Gold falls, Oil prices fall as demand woes eclipse U.S. stimulus-March 25th,2020
Asia Roundup: Dollar holds gains as investors eye U.S. unemployment data, Asian shares plunge as coronavirus roils global economy - Thursday, April 2nd, 2020
Europe Roundup: Euro dips as investors scramble for greenback, European shares gain, Gold gains, Oil jumps as Trump talks up truce hopes for Saudi-Russia price war-April 2nd 2020
Europe Roundup: Euro dips against dollar as surging COVID-19 spells disaster for global growth, European shares falls, Gold eases, Oil prices rise, but doubts remain on Russia-Saudi deal-April 3rd 2020
Europe Roundup: Euro stocks edgy eyeing on ECB’s directives, DXY extends rallies but US stock futures muted after US taxation reforms - Thursday, April 27th, 2017| 12:01 PM GMT
Economic Data Week Ahead
Key Events Ahead
DXY: The broad USD heads into little higher today holding just over recent lows, so far much ado about nothing? That is what US President Trumps “phenomenal “tax reform at the end of his first 100 days in office turns out to be: something that is likely to mainly lead to phenomenal gaps in the budget - in the first year just under $290 bn. and according to estimates by the Committee for a Responsible Federal Budget $5.5 trillion over the coming 10 years.
The index is trading in the narrow range between 98.70 and 99.33 for the past three trading session. It is currently trading around 98.99 0.01% higher. On the higher side, near term resistance is around 99.32 (23.6% retracement of 101.34 and 98.70) and any break above will take the index till 100.03 (Apr 21st high)/100.55 (55- EMA).
The near-term major support is around 98.70 and any break below will drag the index down till 98.
While the FxWirePro currency strength index for the dollar was almost unchanged but has been mildly bullish as the euro dropped earlier today ahead of ECB’s monetary policy meeting, eyed status quo actions but players will seek signs of June change.
EUR/USD: EURUSD has shown the huge decline from the 5-1/2 month peak till 1.08550 lowest for the week. It is currently trading around 1.09049 0.01% higher. The pair jumped from the low of 1.08500 and broken 1.0900 level after US government announces vague tax plan
FX markets await ECB meeting for further direction. As the central banks are expected to maintain status quo the EURO index has been little changed by -0.02% but possibilities of some hints on tapering on account of surrounding French elections are lingering.
On the higher side, major resistance is around 1.0950 and any break above will take the pair towards the critical 1.1000/1.1045 level.
The near term support is around 1.08400- 1.08500 (200- day MA, low formed yesterday) and any violation below targets 1.08200 (Apr 24th 2017 low)/1.07850.
USD/JPY: USD/JPY hits the highest level for this month at 111.77 on the back of BoJ keeping bank rates unchanged and has given up its daily gains, closed in the green.The pair jumped from the low of 108.13 as U.S 10 year bond yields shown a huge recovery from the low of 2.18% and hits 2.33%.
The pair is trading well above all moving averages in the 4H chart and major supply zone is around 111 (200- 4H MA).The near term support is around 110.67 (21- 4H EMA) and any break below targets 110.38 (38.2% retracement of 108.13 and 111.77)/110.15 (100- 4H EMA).
On the higher side, the pair needs to regain the 112 level for further jump till 113.
GBP/USD: The current prices are attempting to push up out of the recent "flag" consolidation phase. Momentum is positive, thus we can foresee a push towards the 1.3000 key resistance region, but we still believe that the upside is limited to these levels as part of a medium-term range. A clear break of 1.30/1.31 would force us to review this outlook as it would risk a broadening of the range expectations to the 1.35 area on the topside.
Cable has broken the high of 1.29035 made on Apr 18th 2017 and jumped till 1.29157 while articulating. It is currently trading around 1.28990.
The break above 1.2900 confirms bullish continuation and a jump till 1.2990 (161.8% retracement of 1.29034 and 1.2754). The 1.2800 psychological level will be acting as near-term support and any violation below will drag the pair till 1.2750(Apr 21st low)/1.2700. Minor trend reversal can be seen only below 1.2500.
USD/CAD: The Canadian dollar recovered sharply after making a low of 1.36475 against US dollar after White house said that Trump will not terminate the participation in NAFTA immediately.
The pair declined till 1.352974 and recovered sharply from that level. Short term trend is still bullish as long as support 1.3410 holds. Break of 1.3647 confirms that decline from 1.46889 and 1.2460 will come to an end, a jump till 1.370/1.3838 (61.8% retracement of 1.4689 and 1.2460) is possible.
On the lower side, major near-term support is around 1.3410 and any break below will drag the pair down till 1.3310 (100- EMA)/1.3220 (Apr 13th 2017 low). A surprise move by Sweden to expand its stimulus programme pushed the crown down sharply, and the Canadian dollar and Mexican peso jumped as the U.S. said it would not scrap the North American Free Trade Agreement.
USD/CHF: USD/CHF is trading in the narrow range between 0.99807 and 0.99186 for the past two trading session. It is currently trading around 0.99311 0.01% lower.
The near term resistance is around 1.000 and any break above target 1.0018 (55- day EMA). Any break above 1.0024 will take the pair till 1.00413 (61.8% retracement of 1.03435 and 0.98135)/1.0120/1.0170.On the lower side, support stands at 0.9860 and any decline below that will drag the pair till 0.9800.
AUD/USD: Aussie broken major support of 0.7490 and declined till 0.74520 yesterday. It is currently trading around 0.7475 0.04% lower. On the lower side, near term support is around 0.7450 and break below targets 0.7380 (61.8% retracement of 0.71599 and 0.7749)/ 0.7330 (161.8% retracement of 0.74910 and 0.77493) most likely.
The pair’s near term resistance is around 0.74925 (23.6% retracement of 0.76105 and 0.74548) and any break above targets 0.7550 (200- day MA) 0.7580/0.7610 (Apr 17th 2017 high)/0.7650.
European stocks opened lower on Thursday, as investors eyed the European Central Bank’s monetary policy decision due later in the day and focused on a fresh round of corporate earnings reports.
During European morning trade, the EURO STOXX50 dropped by 0.47%, France’s CAC40 slipped 0.29%, while Germany’s DAX30 also declined 0.28%.
A record-setting rally in world stocks ran out of steam on Thursday, with unconvincing U.S. tax cut plans cooling investors' spirits and caution setting in as the European Central Bank met.
The main elements of the tax reform are: (1) lowering the top income tax rate from 39.6% to 35% (2) reduction of tax brackets from 7 to 3, with income tax levels of 10%, 25% and 35% (3) cutting corporate tax from 35% to 15% (4) ending inheritance tax (5) doubling the standard deduction (6) lowering capital gains tax from 23.8% to 20% (7) abolition of all kinds of deductions except for those related to mortgage interest and charitable giving. Sounds good? Many of these ideas seem like a good idea to me personally as well.
Europe's main bourses were as much as 0.7 pct lower as traders pulled back after six days of unbroken gains fuelled by relief at the outcome of the first round of France's presidential election and encouraging earnings and economic data.
Asian felt groggy too. The Bank of Japan offered its most upbeat economic assessment in nine years but Asia-Pacific shares ended flat a day after hitting their highest in almost two years.
World stocks hit a record high on Wednesday after strong earnings and the prospect of tax cuts for corporate America pushed U.S. shares to stratospheric levels and the euro held on to recent gains as political concerns in France ebbed. The blue-chip Dow futures inched up 19 points, or 0.09%, at (7:01AM ET - 12:01GMT), the S&P500 futures crawled up 1 point, or 0.04%, while the tech-heavy Nasdaq 100 futures also increased 6 points, or 0.10%.
European shares drew back somewhat from 20-month highs as some unsatisfactory corporate results weighed on the market but Asian stocks powered ahead.
Crude oil: Oil prices fell on Thursday, weighed down by oversupply, but losses were limited by expectations that major exporters would agree to extend production cuts to try to rebalance the market.
Benchmark Brent crude was down 60 cents at $51.22 a barrel by 0915 GMT, almost 10 pct below this month's peak. U.S. light crude was down 55 cents at $49.07.
Brent futures dropped to $51.60 per barrel, down 22 cents, or 0.42 pct, from their last close. Brent is almost 9 pct below its April peak.
Precious metals: Gold prices seem edgy today as speculators snapped some profit from yesterday’s rallies, but some analysts expect further weakness due to easing political risks.
Consequently, Gold falls on global risk sentiment ebbed, but doubts over Trump tax plan cap losses, the feasibility of U.S. tax plan uncertain.
Spot gold still targets crucial technical levels of $1,249.
Silver off over one-month lows hit on Wednesday
Spot gold was down 0.3 pct at $1,264.60 per ounce as of 0736 GMT. Bullion prices edged away from a two-week low of 1,259.90 hit on Wednesday. U.S. gold futures climbed 0.1 pct to $1,265.90 an ounce.
Silver slipped 0.1 pct to $17.45 an ounce after hitting its lowest in over a month in the previous session at $17.28.
Platinum gained 0.3 pct to $944.90 an ounce and palladium dropped 0.1 pct at $807.20 an ounce.
USTs: The U.S. Treasuries gained ahead of the country’s Q1 gross domestic product (GDP), scheduled to be released on April 28. The yield on the benchmark 10-year Treasury fell nearly 1 basis points to 2.30 pct, the super-long 30-year bond yields slumped 1 basis point to 2.96 pct while the yield on short-term 2-year note also traded close to 1 basis point higher at 1.27 pct.
UK gilts: The UK gilts traded flat ahead of the country’s Q1 gross domestic product (GDP), scheduled to be released on April 28. The yield on the benchmark 10-year gilts hovered around 1.08 pct, the super-long 30-year bond yields traded flat at 1.72 pct while the yield on the short-term 2-year fell 1 basis point to 0.08 pct.
German bunds: The German bunds slid ahead of the Eurozone’s consumer price inflation for the month of April, scheduled to be released on April 28. The yield on the benchmark 10-year bond, rose 1/2 basis point to 0.37 pct, the long-term 30-year bond yields rose nearly 1 basis point to 1.11 pct and the yield on short-term 2-year bond remained steady at -0.69 pct.
JGBs: The Japanese government bonds traded flat after the Bank of Japan (BoJ) left its benchmark policy rate unchanged at its monetary policy meeting held earlier today. Also, markets will be focusing on the country’s March consumer price inflation (CPI), scheduled to be released on April 28 for detailed direction in the debt market. The benchmark 10-year bond yield, traded flat at 0.02 pct, the long-term 30-year bond yields hovered around 0.80 pct and the yield on the short-term 2-year note also remained steady at -0.18 pct.
Australia: The Australian government bonds jumped as investors poured into safe-haven assets post the unveiling of the United States tax reform by President Donald Trump on Wednesday. The yield on the benchmark 10-year Treasury note, plunged 2-1/2 basis points to 2.62 pct, the yield on 15-year note slumped nearly 2 basis points to 3.02 pct and the yield on short-term 2-year traded 1-1/2 basis points lower at 1.68 pct.