Market Roundup
- EUR/USD -0.02%, USD/JPY 0.18%, GBP/USD -0.18%, EUR/GBP 0.16%
- DXY 0.06%, DAX 1.78%, FTSE 1.21%, Brent -0.21%, Gold -0.54%
- China says it never backs down in the face of threats after trade salvos with US
- EZ Mar Markit Serv Final PMI, 54.9, 55.0 forecast, 55.0 previous
- EZ Mar Markit Comp Final PMI, 55.2, 55.3 forecast, 55.3 previous
- EZ Feb Producer Prices YY, +1.6%, +1.5% forecast, +1.5% previous
- EZ Feb Retail Sales YY, +1.8%, +2.1% forecast, +2.3% previous
- Germany Mar Markit Services PMI, 53.9, 54.2 forecast, 54.2 previous
- Germany Mar Markit Composite Final PMI, 55.1, 55.4 forecast, 55.4 previous
- Germany Feb Industrial Orders MM, -1.20%, +1.5% forecast, -3.9% previous
- Great Britain Mar Markit/CIPS Services PMI, 51.7, 54.0 forecast, 54.5 previous
- France Mar Markit Services PMI, 56.9, 56.8 forecast, 56.8 previous
- France Mar Markit Composite PMI, 56.3, 56.2 forecast, 56.2 previous
- Italy Mar Markit/ADACI Services PMI, 52.6, 53.8 forecast, 55.0 previous
- Spain Mar Services PMI, 56.2, 56.0 forecast, 57.3 previous
- Canada reports progress on NAFTA, says 'we're not there yet'
- Japan households' mood slumps, inflation expectations stall - BOJ survey
- Oil steady as easing U.S.-China tension, U.S. stockdraw support
- Gold prices fall as U.S.-China trade tensions easer
Economic Data Ahead
- (0830 ET/1230 GMT) The United States releases trade balance figures for the month of February. The economy's trade deficit is expected to have slightly widened to $56.8 billion from 56.6 billion in January.
- (0830 ET/1230 GMT) The number of Americans filing for unemployment benefits is likely to have increased by 10,000 to a seasonally adjusted 225,000 for the week ended Mar. 30, while continuing claims for the week ended Mar. 23 is expected to decline to 1.849 million from previous 1.871 million.
- (0830 ET/1230 GMT) The Statistics Canada is likely to report that international trade deficit widened to C$2.00 billion in February from C$1.91 billion in January.
- (1030 ET/1430 GMT) The Energy Information Administration (EIA) reports its Natural Gas Storage for the week ending March 30.
Key Events Ahead
- (1300 ET/1700 GMT) Federal Reserve Bank of Atlanta President Raphael Bostic is slated to speak on "Financial Literacy" before a Financial Literacy Day event hosted by the University of South Florida Sarasota-Manatee.
FX Beat
DXY: The dollar index surged to a 1-week peak, supported by a strong recovery in the US equity markets and easing tensions of a trade war between China and the United States. The greenback against a basket of currencies trades 0.1 percent up at 90.16, having touched a high of 90.34 earlier, its highest since Mar. 21. FxWirePro's Hourly Dollar Strength Index stood at -7.04 (Neutral) by 1000 GMT.
EUR/USD: The euro slumped to a 2-week low as Eurozone retail sales rose at a slower rate than expected in February and figures for January were revised down, indicating a slowdown of business at the start of the year. The economy's retail sales increased by just 0.1 percent month-on-month for a 1.8 percent year-on-year rise. The European currency traded 0.1 percent down at 1.2270, having touched a low of 1.2249 earlier, its lowest since Mar. 21. FxWirePro's Hourly Euro Strength Index stood at -16.12 (Neutral) by 1000 GMT. Immediate resistance is located at 1.2300, a break above targets 1.2373 (Mar. 23 High). On the downside, support is seen at 1.2239 (Mar. 20 Low), a break below could drag it lower 1.2187 (Feb. 28 Low).
USD/JPY: The dollar rallied to a 3-week peak after the US President Donald Trump's economic adviser Larry Kudlow said that the administration was in negotiation with China, and not engaged in a trade war, easing fears about a US-China trade dispute. The major was trading 0.2 percent up at 106.97, having hit a high of 107.15 earlier, its highest since Mar. 13. FxWirePro's Hourly Yen Strength Index stood at -104.13 (Highly Bearish) by 1000 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. trade balance, unemployment, and FOMC member Bostic's speech. Immediate resistance is located at 107.29 (Mar. 13 High), a break above targets 107.52 (Feb. 28 High). On the downside, support is seen at 106.38 (5-DMA), a break below could take it lower 105.99 (Apr. 4 Low).
GBP/USD: Sterling declined after rising for four straight sessions, as weak consumer demand weighed on British services businesses last month, which grew at the slowest rate since just after the Brexit vote in June 2016. Britain's IHS Markit/CIPS services Purchasing Managers' Index tumbled to 51.7 in March from February's reading of 54.5, its lowest reading since July 2016. The major traded 0.1 percent down at 1.4060, having hit a high of 1.4097 earlier, it’s highest since Mar. 29. FxWirePro's Hourly Sterling Strength Index stood at 108.51 (Highly Bullish) by 01000 GMT. Immediate resistance is located at 1.4171 (Mar. 23 High), a break above could take it near 1.4200 (Mar. 28 High). On the downside, support is seen at 1.4012 (Mar 30 Low), a break below targets 1.3982 (Mar. 20 Low). Against the euro, the pound was trading 0.1 percent up at 87.31 pence, having hit a high of 87.13 pence on Tuesday, it’s highest since Mar 22.
USD/CHF: The Swiss franc steadied after falling to a 2-1/2 month low earlier in the session as easing worries over U.S.-China trade war boosted market sentiment. The major trades flat at 0.9602, having touched a high of 0.9630 earlier, it’s highest since Jan. 23. FxWirePro's Hourly Swiss Franc Strength Index stood at -54.60 (Bearish) by 1000 GMT. On the higher side, near-term resistance is around 0.9640 (Jan 22 High) and any break above will take the pair to next level till 0.9667 (Jan 18 High). The near-term support is around 0.9529 (10-DMA) and any close below that level will drag it till 0.9484.
Equities Recap
European shares rebounded, while the greenback rose against a basket of currencies on signs of an easing of U.S. - China trade tensions.
The pan-European STOXX 600 index surged 1.6 percent to 373.14 points, while the FTSEurofirst 300 index slumped 1.6 percent to 1,461.57 points.
Britain's FTSE 100 trades 1.2 percent up at 7,121.16 points, while mid-cap FTSE 250 gained 0.9 percent to 19,435.61 points.
Germany's DAX rose 1.8 percent at 12,178.92 points; France's CAC 40 trades 1.7 percent higher at 5,233.18 points.
Commodities Recap
Crude oil prices declined despite an easing of trade tensions between the United States and China and an unexpected draw in U.S. crude inventories last week. International benchmark Brent crude was trading 0.4 percent down at $67.94 per barrel by 1015 GMT, having hit a low of $66.86 on Wednesday, its lowest since Mar. 20. U.S. West Texas Intermediate was trading 0.5 percent down at $63.25 a barrel, after falling as low as $62.09 on Monday, its weakest since Mar. 19.
Gold prices slumped to 1-week low, as risk appetite recovered after the United States expressed willingness to resolve an escalating trade fight with China. Spot gold eased 0.4 percent to $1,328.23 per ounce by 1029 GMT, after touching a low of $1,324.37 earlier, its lowest its Mar. 29. U.S. gold futures fell 0.9 percent to $1,328.50 an ounce.
Treasuries Recap
The U.S. Treasuries slumped ahead of the country’s initial jobless claims and trade balance for the month of February, scheduled to be released today by 12:30GMT respectively. The yield on the benchmark 10-year Treasuries jumped nearly 3-1/2 basis points to 2.82 percent, the super-long 30-year bond yields also climbed close to 3-1/2 basis points to 3.06 percent and the yield on the short-term 2-year traded nearly 1-1/2 basis points higher at 2.30 percent.
The German bunds plunged after investors have largely shrugged-off the country’s lower-than-expected services PMI for the month of March and retail sales. The German 10-year bond yields, which move inversely to its price, jumped nearly 3-1/2 basis points to 0.52 percent, the yield on 30-year note surged 4 basis points to 1.19 percent and the yield on short-term 2-year traded nearly 1-1/2 basis points higher at -0.57 percent.
The Japanese government bonds suffered even as investors expect to see a fall in the country’s household spending for the month of February, scheduled to be released today by 23:30GMT. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1/2 basis point to 0.03 percent, the yield on the long-term 30-year note jumped 1-1/2 basis points to 0.72 percent and the yield on short-term 2-year hovered around -0.13 percent.
The Australian 10-year bond yield hit over 1-week high following higher-than-expected February trade balance data. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, rose 3 basis points to 2.6656 percent, the yield on the long-term 30-year note climbed 4 basis points to 3.265 percent and the yield on short-term 2-year also fell nearly 2 basis points to 2.057 percent.
