Market Roundup
- EUR/USD -0.61%, USD/JPY -0.28%, GBP/USD -0.06%, EUR/GBP -0.59%
- DXY 0.23%, DAX -0.4%, FTSE -0.79%, Brent -0.83%, Gold 0.26%
- EU leaders give Britain "last chance" for orderly Brexit
- Bleak manufacturing data pushes German Bund yield below zero pct
- Germany Mar Markit Mfg Flash PMI, 44.7, 48.0 f'cast, 47.6 prev
- Germany Mar Markit Service Flash PMI, 54.9, 54.8 f'cast, 55.3 prev
- Germany Mar Markit Comp Flash PMI, 51.5, 52.7 f'cast, 52.8 prev
- EZ Mar Markit Mfg Flash PMI, 47.6, 49.5 f'cast, 49.3 prev
- EZ Mar Markit Serv Flash PMI, 52.7, 52.7 f'cast, 52.8 prev
- EZ Mar Markit Comp Flash PMI, 51.3, 52.0 f'cast, 51.9 prev
- France Mar Markit Mfg Flash PMI, 49.8, 51.5 f'cast, 51.5 prev
- France Mar Markit Serv Flash PMI, 48.7, 50.7 f'cast, 50.2 prev
- France Mar Markit Comp Flash PMI, 48.7, 50.7 f'cast, 50.4 prev
Economic Data Ahead
- (0830 ET/1230 GMT) Statistics Canada is expected to report that retail sales gained 0.4 percent in January after easing 0.1 percent in December. While excluding autos, retail sales are likely to have risen 0.2 percent, after declining 0.5 percent in the previous month.
- (0830 ET/1230 GMT) Statistics Canada is expected to report that the annual inflation rate remained unchanged at 1.4 percent in February, while core consumer price index rose 0.2 percent in January.
- (0945 ET/1345 GMT) Financial firm Markit releases U.S. preliminary Manufacturing PMI for the month of March. The index is likely edged up to 53.6 after posted a final reading of 53.0 in the previous month.
- (0945 ET/1345 GMT) Markit Economics will release preliminary U.S. composite PMI for the month of March. The index posted a final reading of 55.2 in the prior month.
- (0945 ET/1345 GMT) Financial firm Markit Economics is likely to report that preliminary U.S. service PMI business activity index rose to 56.0 in March after printing a similar final reading in February.
- (1000 ET/1400 GMT) National Association of Realtors is likely to report that U.S. existing home sales rose 2.2 percent to an annual rate of 510,000 million units in February.
- (1000 ET/1400 GMT) The U.S. Census Bureau is likely to report that wholesale inventories rose 0.2 percent in January after posting a gain of 1.1 percent in the prior month.
- (1300 ET/1700 GMT) Baker Hughes reports U.S. Oil Rig Count.
- (1400 ET/1800 GMT) The U.S. reports its monthly budget statement for the month of February. The government is likely to show a budget deficit of $227 billion after posting a surplus of $9 billion in the previous month.
FX Beat
DXY: The dollar index rallied to a 1-week peak after Bloomberg reported that U.S. officials downplayed the prospect of an imminent trade deal with Beijing. The greenback against a basket of currencies traded 0.4 percent up at 96.69, having touched a low of 95.74 on Wednesday, its lowest since Feb 4. FxWirePro's Hourly Dollar Strength Index stood at 17.04 (Neutral) by 1100 GMT.
EUR/USD: The euro plunged to an over 1-week low after data showed businesses across the eurozone performed much worse than expected in March as factory activity contracted at the fastest pace in nearly six years. The European currency traded 0.6 percent down at 1.1310, having touched a low of 1.1288, its highest since Mar. 13. FxWirePro's Hourly Euro Strength Index stood at -111.39 (Highly Bearish) by 1100 GMT. Immediate resistance is located at 1.1419 (Feb 28 High), a break above targets 1.1488 (Feb 1 High). On the downside, support is seen at 1.1277 (Mar. 13 Low), a break below could drag it till 1.1221 (Mar. 11 Low).
USD/JPY: The dollar slumped, hovering towards a 5-week low set in the prior session after Reuters Corporate Survey showed U.S.-China trade dispute to last until at least late this year and China's economic slowdown to persist at least through late 2019. The major was trading 0.4 percent down at 110.40, having hit a low of 110.29 the day before, its lowest since Feb. 15. FxWirePro's Hourly Yen Strength Index stood at 114.41 (Highly Bullish) by 1100 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. Markit flash PMI's, existing home sales, and wholesale inventories. Immediate resistance is located at 111.07 (Feb. 26 High), a break above targets 111.46 (Mar. 12 High). On the downside, support is seen at 110.25 (Feb. 15 Low), a break below could take it lower at 109.63 (Dec. 31 Low).
GBP/USD: Sterling steadied above the 1.3100 handle, after the European Union leaders gave Prime Minister Theresa May a two-week reprieve, until April 12, to decide how to leave the European Union. The major traded 0.4 percent up at 1.3149, having hit a low of 1.3003 on Thursday; it’s lowest since Mar. 11. FxWirePro's Hourly Sterling Strength Index stood at 8.72 (Neutral) 1100 GMT. Immediate resistance is located at 1.3198 (Mar. 5 High), a break above could take it near 1.3254 (Mar. 4 High). On the downside, support is seen at 1.3068 (Mar. 7 Low), a break below targets 1.3004 (Mar. 4 Low). Against the euro, the pound was trading 0.9 percent up at 85.92 pence, having hit a low of 87.22 on Thursday, it’s lowest since Feb. 22.
USD/CHF: The Swiss franc drifted further away from a 2-month peak set earlier in the week, following a recovery in the greenback. The major trades 0.3 percent up at 0.9944, having touched a low of 0.9894 on Wednesday; it’s lowest since Jan. 16. FxWirePro's Hourly Swiss Franc Strength Index stood at 122.88 (Highly Bullish) by 1100 GMT. On the higher side, near-term resistance is around 0.9986 (Jan. 22 High) and any break above will take the pair to next level till 1.0024 (Feb. 22 High). The near-term support is around 0.9895 (Jan.17 Low), and any close below that level will drag it till 0.9852 (Jan. 4 Low).
Equities Recap
European shares plunged after downbeat manufacturing data from Germany reignited fears of a recession in Europe's biggest economy.
The pan-European STOXX 600 index plunged 0.5 percent at 378.67 points, while the FTSEurofirst 300 index eased 0.4 percent to 1,491.36 points.
Britain's FTSE 100 trades 1.0 percent down at 7,281.60 points, while mid-cap FTSE 250 fell 0.8 to 19,198.33 points.
Germany's DAX declined 0.4 percent at 11,500.20 points; France's CAC 40 trades 0.8 percent lower at 5,333.66 points.
Commodities Recap
Crude oil prices declined, hovering further from 2019 highs, but was set for a third straight week of gains due to supply cuts led by producer club OPEC and by U.S. sanctions on Iran and Venezuela. International benchmark Brent crude was trading 0.9 percent up at $67.05 per barrel by 1057 GMT, having hit a high of $68.67 the day before, its highest since Nov. 13. U.S. West Texas Intermediate was trading 0.9 percent lower at $59.31 a barrel, after rising as high as $60.37 on Thursday, its highest since the Nov. 12.
Gold prices rose, hovering towards a 3-week peak hit the day before, and was on track for a third straight weekly gain after the U.S. Federal Reserve said there would be no further interest rate hikes this year. Spot gold was 0.3 percent up at $1,312.77 per ounce by 1102 GMT, having touched a high of $1,320.26 on Thursday, its highest since Feb 28. U.S. gold futures gained 0.3 percent to $1,310.80 an ounce.
Treasuries Recap
The U.S. Treasuries continued to climb during the afternoon session, tracking dovish clues left by the Fed on Wednesday amid an otherwise muted trading day that witnessed data of little economic significance. The yield on the benchmark 10-year Treasury yield plunged 4-1/2 percent to 2.494 percent, the super-long 30-year bond yields suffered nearly 3-1/2 basis points to 2.930 percent and the yield on the short-term 2-year traded 3 basis points lower at 2.379 percent.
The United Kingdom’s gilts rallied during the afternoon session after the European Union leaders have finally agreed to an extension of the Article 50 deadline to avoid a no-deal Brexit next week. The yield on the benchmark 10-year gilts, slipped 1/2 basis point to 1.059 percent, the super-long 30-year bond yields suffered 1-1/2 basis points to 1.535 percent and the yield on the short-term 2-year hovered around 0.692 percent
The German bunds jumped during European session after the country’s manufacturing PMI for the month of March came in lower than market expectations. The German 10-year bond yields, which move inversely to its price, slumped nearly 3-1/2 basis points to 0.006 percent, the yield on 30-year note plunged nearly 6 basis points to 0.624 percent and the yield on short-term 2-year traded tad lower at -0.553 percent
The Japanese 10-year government bond yield slumped to over 2-year low tracking a buying in the global debt market after the Federal Reserve delivered a dovish stance at its monetary policy meeting held on Wednesday. The yield on the benchmark 10-year JGB note, which moves inversely to its price, plunged 6 basis points to -0.066 percent, the yield on the long-term 30-year slumped 4 basis points to 0.533 percent and the yield on short-term 2-year suffered 9 basis points to -0.170 percent.
The Australian government bonds gained during the Asian trading session as investors moved towards safe-haven assets amid end of monetary-policy normalization by major global central banks. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, plunged about 4 basis points to 1.846 percent (lowest since August 2016), the yield on the long-term 30-year bond slumped 4-1/2 basis points to 2.493 percent and the yield on short-term 2-year traded 1-1/2 basis points lower at 1.502 percent.
