Market Roundup
- EUR/USD -0.2%, USD/JPY -0.15%, EUR/JPY -0.2%, EUR/GBP -0.2%
- DXY -0.5%, DAX -0.25%, FTSE -0.5%, Copper +1.1%, Gold +0.1%
- EUR/JPY hits 5-month low at 115.91. EUR/GBP 6-week low at 0.8476
- UK 10-year gilt yield falls to lowest since Oct 13 at 1.027 percent
- Germany Mar CPI final 0.2% m/m, 1.6% y/y vs previous 0.2%/1.6%. 0.2%/1.6% forecast
- Switzerland Mar Producer/Import price 0.1% m/m, 1.3% y/y vs previous -0.2%/1.3%
- Putin told Tillerson why U.S.-Russian ties in bad state: Kremlin
- Do more to support infrastructure projects in Balkans, Germany's Gabriel tells EU
- Japan's Suga: FX stability vital, watching market closely
- IEA says global oil market now close to balance
- OECD endorses Japan's monetary easing, urges caution against risks
Economic Data Ahead
- (0830 ET/1230 GMT) The U.S. producer price index is likely to remain unchanged in March, while in the 12 months through the same period, it is expected to have advanced 2.4 percent. PPI excluding food and energy probably edged up 0.2 percent after gaining 0.3 percent in February.
- (0830 ET/1230 GMT) The number of Americans filing for unemployment benefits is likely to have increased by 11,000 to a seasonally adjusted 245,000 for the week ended Apr. 7. While continuing claims for the week ended Mar. 31 is expected stay unchanged at 2.028.
- (0830 ET/1230 GMT) Statistics Canada releases manufacturing shipments data for the month of February. Manufacturing sales are likely to have decreased 0.7 percent after rising 0.6 percent in January.
- (0830 ET/1230 GMT) The Statistics Canada releases its New Housing Price Index (NHPI) for the month of February. The index is likely to show a 0.2 percent rise from 0.1 percent in January.
- (1000 ET/1400 GMT) The University of Michigan is likely to report that U.S. preliminary consumer sentiment index declined to 96.6 in April from a final reading of 96.9 in March.
- (1030 ET/1430 GMT) The Energy Information Administration (EIA) reports its Natural Gas Storage for the week ending April 7.
Key Events Ahead
- (1030 ET/1430 GMT) Bank of Canada Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins are scheduled to appear before a Senate committee on banking.
FX Beat
DXY: The dollar rebounded from recent lows versus its major peers as investors digested President Trump's remarks and shifted their focus on U.S. PPI print and the prelim UoM consumer sentiment for fresh impetus. The dollar against a basket of currencies traded 0.1 percent higher at 100.31, having hit a low of 100.01 earlier, its lowest since Mar. 30. FxWirePro's Hourly Dollar Strength Index stood at -94.66 (Slightly Bearish) by 1000 GMT.
EUR/USD: The euro eased from a 1-week high as the greenback attempted a minor recovery from Trump’s bearish comments on the dollar and the dovish talk about the interest rate. The European currency traded 0.2 percent down at 1.0643, having touched a high of 1.0677 earlier, its highest since Apr. 6. FxWirePro's Hourly Euro Strength Index stood at -62.17 (Bearish) by 1000 GMT. The near term resistance is around 1.06750 (21- day EMA) and any break above targets 1.0703 (100- day EMA)/1.07760 (61.8% retracement of 1.09058 and 1.05694). On the lower side, any break below 1.05250 will drag the pair down till 1.04950/1.0340.
USD/JPY: The dollar regained the 109.00 handle, retreating from a 5-month low touched earlier in the day as the selling pressure around the greenback stalled. However, rising tensions over the U.S. relations with Russia and North Korea continued to support the safe-haven Japanese yen. The major traded up at 109.02, having touched an early low of 108.72, its lowest since Nov. 17. FxWirePro's Hourly Yen Strength Index stood at 165.71 (Highly Bullish) by 1000 GMT. On the higher side, any break above 110.57 (daily Tenken-Sen) and break above will take the pair till 111.24 (21- day EMA)/111.88 (100-day EMA. The near term support is around 108.50 (200- day MA) and any break below will drag it till 106.32.
GBP/USD: Sterling rose to an over 2-week high against the dollar as a week of upbeat data eased some investors' worries about the impact of Brexit on the UK economy. However, the major trimmed gains after the BoE Credit Conditions Survey showed that that the lenders expect to tighten the supply of unsecured consumer credit. Sterling trades flat at 1.2540, having touched an early high of 1.2573, its highest since Mar. 28. FxWirePro's Hourly Sterling Strength Index stood at -33.96 (Neutral) by 1000 GMT. The minor bullishness can be seen above 1.2640 (200- day MA). On the lower side, near term support is around 1.24800 (100- day EMA) and any break below will drag the pair down till 1.2430 (21- day EMA)/1.2400/1.23650 (Apr 7 low). Against the euro, the pound traded 0.2 percent up at 84.82 pence, having hit a 6-week high of 84.74 earlier in the session.
USD/CHF: The Swiss franc edged down after rising to a 2-week high earlier in the session as the greenback attempted a minor recovery across the board. The major traded 0.1 percent up at 1.0043, having hit a low of 1.0008, its weakest since Mar. 31. FxWirePro's Hourly Swiss Franc Strength Index stood at -49.36 (Neutral) by 1000 GMT. Technically the pair is facing strong minor support at 1.000 and any break below targets 0.9960/0.9939 (200- day MA). On the higher side, any break above 1.0060 will take it till 1.01078 (Apr 10 high)/1.0170 (Mar 7 high).
AUD/USD: The Australian dollar advanced to a 1-week high as solid Australian jobs and Chinese trade data boosted the sentiment around the major. The Aussie trades 0.8 percent higher at 0.7579, having hit a peak of 0.7595 earlier in the day, it’s highest since Apr. 4. FxWirePro's Hourly Aussie Strength Index stood at 37.93 (Neutral) by 1000 GMT. On the lower side, any break below 0.7490 confirms minor weakness, a decline till 0.7450/0.7380 likely. The major resistance is around 0.7600 and a break above will take the pair till 07680/ 0.7745.
Equities Recap
European shares declined, weighed down by banking stocks, while the greenback rebounded as investors digested President Donald Trump’s comments.
The pan-European STOXX 600 index plunged 0.4 percent to 380.19 points, while the FTSEurofirst 300 index tumbled 0.5 percent to 1,495.90 points.
Britain's FTSE 100 trades 0.1 percent down at 7,314.30 points, while mid-cap FTSE 250 slumped 0.1 percent to 19,403.57 points.
Germany's DAX declined 0.38 percent at 12,108.01 points; France's CAC 40 trades 0.61 percent lower at 5,070.15 points.
Tokyo's Nikkei eased 0.68 percent to 18,426.84 points, Australia's S&P/ASX 200 index fell 0.77 percent to 5,888.10 points. South Korea's KOSPI rose 0.93 percent to 2,148.61 points.
Shanghai composite index gained 0.1 percent to 3,275.96 points, while CSI300 index climbed 0.1 percent to 3,514.57 points. Hong Kong’s Hang Seng shed 0.2 percent to 24,261.66 points.
Commodities Recap
Crude oil prices gained, hovering towards a 1-month high touched in the previous session as the output cuts being made by OPEC and other producers offset rising U.S. production. International benchmark Brent crude was trading 0.6 percent up at $55.91 per barrel by 0950 GMT, having hit a high of $56.62 the prior day, its strongest since Mar. 1. U.S. West Texas Intermediate crude gained 0.6 percent to $53.10 a barrel, after rising as high as $53.74 the day before, its highest since Mar. 7.
Gold rallied to a five-month peak amid rising tensions over U.S. relations with Russia and North Korea, while President Donald Trump comments weighed heavily on the U.S. dollar. Spot gold rose 0.1 percent to $1,287.19 per ounce at 0954 GMT, after rising as high as $1,287.87 per ounce, the highest since Nov. 10. U.S. gold futures climbed 0.7 percent to $1,286.40.
Treasuries Recap
The 10-year U.S treasury yield stood at 2.237 percent lower by 0.059 bps, while 5-year yield was 0.063 bps down at 1.767 percent.
The UK gilts witnessed steep rebound tracking U.S. Treasuries and ahead of the long Easter holidays. The yield on the benchmark 10-year gilts slumped 3 basis points to 1.02 percent, the super-long 30-year bond yields also plunged nearly 3 basis points to 1.62 percent while the yield on the short-term 2-year traded nearly 1 basis point lower at 0.08 percent.
The Japanese government bonds traded modestly lower after witnessing sluggish demand at the 30-year auction held earlier in the day. The benchmark 10-year bond yield traded flat at 0.02 percent, the long-term 30-year bond yields rose 1 basis point to 0.79 percent and the yield on the short-term 3-year note traded 1/2 basis point higher at -0.19 percent.
The Australian bonds rallied following prompted by comments by U.S. President Donald Trump on favoring low-interest rates made in a newspaper interview published in late U.S. trading. The yield on the benchmark 10-year Treasury note slumped 5-1/2 basis points to 2.47 percent, the yield on 15-year note also plunged nearly 5-1/2 basis points to 2.87 percent and the yield on short-term 2-year traded nearly 2 basis points lower at 1.62 percent.
The New Zealand 10-year bond yields hit lowest since the United States Presidential election following global weak risk appetite. The yield on the benchmark 10-year Treasury note slumped 7-1/2 basis points to 2.96 percent, the yield on 5-year note plunged nearly 1 basis point to 2.36 percent and the yield on short-term 2-year traded nearly 1 basis point lower at 2.09 percent.
