Market Roundup
• Novel coronavirus infects more than 2.38 mln people globally
• U.S., euro zone PMIs awaited later in the week
• German PPI March (YoY) -0.8%,-0.8% forecast, -0.1% previous
• German PPI March (MoM) -0.8%,-0.7% forecast, -0.4% previous
• EUR Feb Current Account 40.2B, 31.8 previous
• EUR Feb Current Account n.s.a. 33.8B, 10.5B previous
• EUR Feb Trade Balance 23.0B, 1.3B previous
Looking Ahead - Economic Data (GMT)
• 12:30 US March Chicago Fed National Activity 0.16 previous
• 12:30 Canada Feb Wholesale Sales (MoM) -0.4% forecast, 1.8% previous
• 13:00 Feb Russian Real Wage Growth (YoY) 5.5% forecast, 6.5% previous
• 13:00 Russian March Retail Sales (YoY) 2.6% forecast, 4.7% previous
• 13:00 Russian Unemployment Rate 4.8% forecast, 4.6% previous
Looking Ahead - Economic events and other releases (GMT)
• No Significant events
Fxbeat
EUR/USD: The euro declined against the U.S. dollar on Monday, as investors squared positions before a European Union summit this week on how to tackle the economic fallout of the novel coronavirus crisis. EU heads of governments are scheduled to hold a video summit over how to tackle the economic fallout of the crisis on Thursday, where differing views on coronabonds, mostly demanded by southern EU member states, are expected to be voiced. Immediate resistance can be seen at 1.0896 (5 DMA), an upside break can trigger rise towards 1.0962 (55 DMA).On the downside, immediate support is seen at 1.0800 (Psychological level), a break below could take the pair towards 1.0732 (Lower BB).
GBP/USD: Sterling slid on Monday against dollar as the death toll from the novel coronavirus increased and officials said it was too soon to talk about easing the lockdown implemented to stop the virus spreading further. Britain reported 596 deaths from COVID-19, the respiratory disease caused by the virus, in hospitals in its daily update on Sunday, raising the country’s total to more than 16,000. Sterling fell 0.3% against both the dollar, trading last at $1.2468 at (GMT 11:56). Immediate resistance can be seen at 1.2494 (5DMA), an upside break can trigger rise towards 1.2535 (50 DMA).On the downside, immediate support is seen at 1.2315 (21 DMA), a break below could take the pair towards 1.2261 (30 DMA).
USD/CHF: The dollar strengthened against the Swiss franc on Monday, as investors braced for more dire news on the fallout from the coronavirus and governments across the globe moved only cautiously toward an economic re-start. Investors’ preference for the dollar as a safe harbour pushed euro, swiss franc, pound and yen a little lower. The week ahead brings U.S. monthly employment figures, eurozone survey indicators and quarterly growth in world-trade bellwether South Korea. None are likely to be easy reading.The week is also crucial to the COVID-19 recovery as governments around the world make tentative steps toward easing lockdowns. Immediate resistance can be seen at 0.9711 (100 DMA), an upside break can trigger rise towards 0.9815 (Higher BB).On the downside, immediate support is seen at 0.9656 (30 DMA), a break below could take the pair towards 0.9521 (Lower BB).
USD/JPY: The dollar strengthened against the Japanese yen on Monday, as the concerns about global growth boosted the safe-haven appeal of the greenback. Investors now looking to a data-heavy week for more signs of economic damage from the coronavirus pandemic. Markets eye preliminary April business activity readings from the United States and the euro zone later this week, in the backdrop of dismal figures in March, as it is expected to underscore the full extent of the economic damage from virus-related lockdowns. Strong resistance can be seen at 107.91 (5 DMA), an upside break can trigger rise towards 108.51 (21 DMA).On the downside, immediate support is seen at 107.60 (5 DMA), a break below could take the pair towards 105.85 (Lower BB).
Equities Recap
European shares dipped on Monday amid expectations a busy week of corporate earnings reports and economic data will drive home the damage done by the global virus lockdown.
At (GMT 12:10),UK's benchmark FTSE 100 was last trading lower at 0.98 percent, Germany's Dax was up by 1.30 percent, France’s CAC finished was down by 1.20 percent.
Commodities Recap
Gold fell to a more than one-week low on Monday, dragged by a firmer dollar amid doubts over the United States' plans to reopen the world's largest economy as the novel coronavirus pandemic showed no signs of easing.
Spot gold fell 0.5% to $1,675.17 per ounce by 0816 GMT, having touched its lowest since April 9 earlier. U.S. gold futures slipped 0.7% to $1,687.10.
Oil prices fell on Monday, with a U.S. crude futures contract hitting its lowest level since 1999, depressed by concern that U.S. crude storage will soon be full while companies prepare to report the worst quarterly earnings since the financial crisis.
Brent was down $1.12, or 4%, at $26.96 a barrel by 1008 GMT.The front-month May WTI contract fell $4.79, or 26.2%, to its lowest since March 1999 at $13.48.
Treasuries Recap
Southern European bond yields rose to near one-month highs on Monday, a sign of investors’ unease ahead of a European Union summit later this week over how to tackle the economic fallout from the coronavirus crisis.
Yields across the Italian curve were as much as 15 basis points higher on the day. Italy’s 10-year bond yield rose to 1.94% - edging back towards one-month highs hit last week. The yield gap over top-rated German Bunds was at 240 bps, around 20 bps wider from Friday’s closing levels.
Portuguese and Spanish 10-year bond yields rose to one-month highs at 1.06% and 0.899% respectively.
