• End in sight for some lockdowns
• Markets eye Fed, ECB meetings this week
• Oil suffers as USO ETF sells front-month futures
• Petrocurrencies dragged under
• French April Consumer Confidence 95 , 83 forecast,103 previous
• Spanish Unemployment Rate (Q1) 14.41%,15.60% forecast, 13.78% previous
• UK 10-Year Treasury Gilt Auction 0.260%,0.270% previous
• UK April CBI Distributive Trades Survey -55, -40 forecast, -3 previous
• Italian 6-Month BOT Auction 0.227%,0.055% previous
Looking Ahead - Economic Data (GMT)
• US March Goods Trade Balance -59.89B previous
• US March Retail Inventories Ex Auto 0.3% previous
• US Wholesale Inventories (MoM) -0.7% previous
• 12:55 US Redbook (YoY) -6.9% previous
• 12:55 US Redbook (YoY) -10.6% previous
• 13:00 US Feb S&P/CS HPI Composite - 20 s.a. (MoM) 0.4% forecast, 0.3% previous
• 13:00 US Feb S&P/CS HPI Composite - 20 n.s.a. (MoM) 0.0% previous
• 13:00 US Feb S&P/CS HPI Composite - 20 n.s.a. (YoY) 3.2% forecast, 3.1% previous
• 14:00 US April CB Consumer Confidence 87.9, 120.0 previous
• 14:00 US Richmond Manufacturing Index 2 previous
• 14:00 US Richmond Manufacturing Shipments 13 previous
• 14:00 US April Richmond Services Index 1 previous
• 14:30 US April Dallas Fed Services Revenues -67.0 previous
• 14:30 US Texas Services Sector Outlook -78.8 previous
• 14:30 US March GDP Monthly (YoY) -0.7%,2.9% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro gained against dollar on Tuesday as investors awaited European Central Bank meeting. The ECB has had less room to manoeuvre on rates and announced an enormous bond-buying program. But bickering and indecision over a eurozone rescue package has some in the market expecting deeper action still, perhaps as soon as Thursday.At (GMT 12:00), the euro was last trading up 0.4% at $1.0880. Immediate resistance can be seen at 1.0892 (Daily high), an upside break can trigger rise towards 1.0942 (55 DMA).On the downside, immediate support is seen at 1.0865 (11 DMA), a break below could take the pair towards 1.0837 (9 DMA).
GBP/USD: Sterling rose against dollar on Tuesday as investors turned their attention to U.S. Federal Reserve and European Central Bank meetings this week at which officials are expected to provide further stimulus to their economies to fight the coronavirus. Sterling has been very closely correlated with riskier assets such as stocks and when investors’ risk appetite increases, the pound tends to move up. The pound was last up 0.4% at $1.2468, having risen earlier to an eight-day high of $1.2497. Immediate resistance can be seen at 1.2733 (5 DMA), an upside break can trigger rise towards 1.2787 (Higher BB).On the downside, immediate support is seen at 1.2431 (11 DMA), a break below could take the pair towards 1.2390 (5 DMA).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as investors awaited U.S. Federal Reserve and European Central Bank meetings later this week and as a fresh tumble in oil prices cautioned against risk taking. Markets are looking to any sort of forward guidance from the Fed, which meets later on Tuesday and is due to issue a statement on Wednesday, and for possible further easing in Europe. At (GMT 12:20), Greenback declined 0.27% versus the Swiss franc to 0.9725. Immediate resistance can be seen at 0.9607 (5 DMA), an upside break can trigger rise towards 0.9678 (9 DMA).On the downside, immediate support is seen at 0.9713 (9 DMA ), a break below could take the pair towards 0.9695 (11 DMA).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as a fresh plunge in oil prices underscored the economic shock from the coronavirus increased demand for safe haven. Oil prices slumped on concerns over dwindling crude storage capacity and fears that fuel demand may only recover slowly from curbs on economic and social activity to stem the spread of the coronavirus. Strong resistance can be seen at 107.37 (5 DMA), an upside break can trigger rise towards 107.80 (21 DMA ).On the downside, immediate support is seen at 106.57 (Daily low), a break below could take the pair towards 106.00 (Psychological level).
Equities Recap
European shares hovered near two-week highs on Tuesday as a slate of strong earnings reports from companies, including Novartis and UBS, outweighed a slump in oil prices and shares of Wirecard.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading lower at 1.85 percent, Germany's Dax was up by 1.67 percent, France’s CAC was last up by 1.80 percent.
Commodities Recap
Gold fell more than 1% on Tuesday as some countries planned to gradually ease coronavirus restrictions, although recession concerns and a retreat in riskier assets kept the bullion near the $1,700-level.
Spot gold slipped 1.0% to $1,697.31 per ounce by 0348 GMT. U.S. gold futures fell 0.6% to $1,713.00 per ounce.
Oil prices were mixed on Tuesday as optimism about the easing of coronavirus-related restrictions reassured markets, although traders remained cautious with storage capacities filling up fast and supply cuts not deep enough to counter falling demand.
Brent crude rose 41 cents, or 2%, to $20.40 a barrel at 1006 GMT, following a 6.8% slide on Monday.
U.S. West Texas Intermediate (WTI) crude was down 78 cents, or 6%, at $12.00 a barrel. The contract plunged 25% on Monday.
Treasuries Recap
Euro zone bond yields fell on Tuesday, with the benchmark German government bond yield down around one basis point as a renewed decline in oil prices overshadowed optimism about the easing of lockdown measures globally, increasing demand for safer assets.
Italy’s 10-year government bond fell 6 basis points, hitting fresh two-week lows, while the spread between German and Italian 10-year government bond yields narrowed by as much as 6 basis points to 214.1 bps - its narrowest in nearly two weeks.
