Market Roundup
- EUR/USD -0.21%, USD/JPY 0.26%, GBP/USD -0.72%, EUR/GBP 0.53%
- DXY 0.34%, DAX 1.99%, FTSE 1.93%, Brent 0.24%, Gold -0.34%
- EU Consumer Confidence Final Mar, 0.1, 0.1 forecast, 0.1 previous
- EZ Industrial Sentiment Mar, 6.4, 7.0 forecast, 8.0 previous
- EZ Economic Sentiment Mar, 112.6, 113.4 forecast, 114.1 previous
- EZ Business Climate Mar, 1.34, 1.39 forecast, 1.48 previous
- EZ Services Sentiment Mar, 16.3, 16.5, forecast, 17.5 previous
- EZ Cons Inflation Expectations Mar, 16.1, 18.0 previous
- EZ Selling Price Expectations Mar, 11.5, 12.6 previous
- EZ Money-M3 Annual Growth Feb, 4.2%, 4.6% forecast, 4.6% previous
- Italy Consumer Confidence Mar, 117.5, 115.0 forecast, 115.6 previous
- Italy MFG Business Confidence Mar, 109.1, 110.0 forecast, 110.6 previous
- U.S. seeks China trade moves on autos, financials, chips -source
- Federal Reserve may review rules on lending to the poor
- Gold gains on weaker dollar, Russian tensions
- Oil holds above $70 as geopolitics eclipses supply outlook
Economic Data Ahead
- (0900 ET/1300 GMT) The S&P/Case-Shiller is expected to report that U.S. home price index of 20 metropolitan areas rose at an annualized rate of 6.2 percent in January, after rising 6.3 percent in the previous month.
- (1000 ET/1400 GMT) Federal Reserve Bank of Richmond will publish it Manufacturing Index for March. The index posted a rise of 28 in the prior month.
- (1100 ET/1500 GMT) The U.S. Conference Board is likely to show a rise in its consumer confidence index for the month of March to 131.0 from a final reading of 130.8 in February.
- (1630 ET/2030 GMT) API reports its weekly crude oil stock.
Key Events Ahead
- (1100 ET/1500 GMT) Federal Reserve Bank of Atlanta President Raphael Bostic is scheduled to participate in a conversation before the HOPE Global Forums 2018 Annual Meeting in Atlanta, Georgia.
FX Beat
DXY: The dollar index rebounded after falling to a 1-1/2 month low earlier in the sessions, amid receding fears of a global trade war. The greenback against a basket of currencies 0.4 percent up at 89.43, having touched a low of 88.94 earlier, its lowest since Feb. 19. FxWirePro's Hourly Dollar Strength Index stood at 36.14 (Neutral) by 1000 GMT.
EUR/USD: The euro eased after rising to a 5-week peak in the previous session after data showed Eurozone economic sentiment dipped for the third month in a row in March, as managers in all sectors except construction became more downbeat. The economy's Economic Sentiment Indicator fell to 112.6 in March from a revised 114.2 in February, below the forecast of 113.4. The European currency traded 0.2 percent down at 1.2414, having touched a high of 1.2476 earlier, its highest since Feb. 16. FxWirePro's Hourly Euro Strength Index stood at 75.16 (Slightly Bullish) by 1000 GMT. Immediate resistance is located at 1.2476 (Session High), a break above targets 1.2510 (Feb. 15 High). On the downside, support is seen at 1.2335 (5-DMA), a break below could drag it lower 1.2285 (Mar. 22 Low).
USD/JPY: The dollar rose, extending previous session gains on optimism that the United States and China negotiations on trade would ease concerns about a trade war. The major was trading 0.2 percent up at 105.63, having hit a low of 104.62 the day before, its lowest since Nov. 2016. FxWirePro's Hourly Yen Strength Index stood at -132.86 (Highly Bearish) by 1000 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the Federal Reserve Bank of Atlanta President Raphael Bostic's speech. Immediate resistance is located at 105.88 (38.2% retracement of 106.64 and 104.62), a break above targets 106.18 (21-DMA). On the downside, support is seen at 105.26, a break below could take it lower 105.05.
GBP/USD: Sterling slumped below the 1.4200 handle due to some cross-driven weakness. The British pound declined against the Swiss franc, recording its biggest drop in 7 weeks on expectations of selling pressure from a large corporate acquisition. The major traded 0.8 percent down at 1.4110, having hit a high of 1.4244 earlier, it’s highest since Feb. 2. FxWirePro's Hourly Sterling Strength Index stood at -112.45 (Highly Bearish) by 1000 GMT. Immediate resistance is located at 1.4278 (Feb 2 High), a break above could take it near 1.4345. On the downside, support is seen at 1.4076 (Mar. 22 Low), a break below targets 1.4042 (10-DMA). Against the euro, the pound was trading 0.6 percent down at 87.92 pence, having hit a high of 86.67 pence on Thursday, it’s highest since June 2016.
USD/CHF: The Swiss franc eased after rising for four straight sessions, weighed down by easing US-China trade war fears and a renewed uptick in the U.S. Treasury bond yields. The major trades 0.2 percent up at 0.9475, having touched a low of 0.9433 the session before, it’s lowest since Mar. 14. FxWirePro's Hourly Swiss Franc Strength Index stood at -24.30 (Neutral) by 1000 GMT. On the higher side, near-term resistance is around 0.9490 (10-DMA) and any break above will take the pair to next level till 0.9514 (Mar 22 High). The near-term support is around 0.9424 (Mar. 14 Low) and any close below that level will drag it till 0.9400.
Equities Recap
European shares rallied on signs that the United States and China were negotiating to avert a trade war, while the greenback retreated from a 1-1/2 month low on easing U.S-China trade war concerns.
The pan-European STOXX 600 index surged 1.5 percent to 368.55 points, while the FTSEurofirst 300 index rallied 1.5 percent to 1,442.40 points.
Britain's FTSE 100 trades 1.9 percent up at 7,019.56 points, while mid-cap FTSE 250 gained 1.2 percent to 19,412.86 points.
Germany's DAX rose 2.1 percent at 12,028.04 points; France's CAC 40 trades 1.5 percent higher at 5,143.59 points.
Commodities Recap
Crude oil prices rose, after easing from multi-week highs in the previous session, as concerns that tensions in the Middle East could lead to supply disruptions supported market sentiment. International benchmark Brent crude was trading 0.5 percent up at $70.40 per barrel by 1009 GMT, having hit a high of $70.95 the day before, its highest since Jan. 25. U.S. West Texas Intermediate was trading 0.5 percent up at $65.77 a barrel, after rising as high as $66.52 on Monday, its strongest since Jan 25.
Gold prices declined after rising to a 1-1/2 month high earlier in the day, as U.S.-China trade war fears appeared to ease. Spot gold was 0.3 percent down at $1,349.14 per ounce at 1012 GMT, after touching a high of $1,356.76 earlier in the session, its highest since Feb. 16. U.S. gold futures for April delivery were flat at $1,355 per ounce.
Treasuries Recap
The U.S. Treasuries traded mixed ahead of the short-term 5-year auction, due today at 17:00GMT and FOMC member Bostic is due to deliver a keynote speech at 15:00GMT for further direction in the debt market. The yield on the benchmark 10-year Treasuries rose 1 basis point to 2.85 percent, the super-long 30-year bond yields jumped nearly 2 basis points to 3.08 percent while the yield on the short-term 2-year traded 1 basis point lower at 2.30 percent.
The UK gilts suffer in a flat trading session amid progress in EU-UK Brexit negotiations that weighed on debt prices. The yield on the benchmark 10-year gilts, hovered around 1.43 percent, the super-long 30-year bond yields edged slightly up to 1.74 percent and the yield on the short-term 2-year too traded tad higher at 0.89 percent.
The German bunds climbed as investors wait to watch the country’s employment report for the month of March, scheduled to be released on March 29 by 07:55GMT and the consumer price inflation (CPI) data, due by 12:00GMT will add detailed direction to the debt market. The German 10-year bond yields, which move inversely to its price, hovered around 0.52 percent, the yield on the 30-year note edged nearly 1 basis point lower at 1.16 percent and the yield on short-term 2-year too traded flat at -0.59 percent.
The Japanese government bonds traded sideways in a silent session amid lack of economically significant data. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, remained flat at 0.02 percent, the yield on the long-term 30-year note also hovered around 0.74 percent and the yield on short-term 2-year too traded steady at -0.15 percent.
The Australian government bonds traded flat in subdued session as investors remained sidelined amid lack of economically significant data through the day. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, traded flat at 2.691 percent, the yield on the long-term 30-year note remained steady at 3.276 percent and the yield on short-term 2-year traded flat at 2.070 percent.
