Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

Europe Roundup: Sterling steadies near 2-week low; Swiss franc, yen rally amid global economic slowdown fears; investors eye U.S. non-farm payroll report - Friday, March 8th, 2019

Market Roundup

  • Italy Jan 2019 producer prices yy decrease to 3.4 % vs previous 4.1 %
     
  • Italy Jan 2019 industrial output yy wda increase to -0.8 % (forecast -3 %) vs previous -5.5 %
     
  • Italy Jan 2019 industrial output mm sa increase to 1.7 % (forecast 0.1 %) vs previous -0.7 % (revised from -0.8 %)
     
  • France Jan 2019 current account - balance nsa decrease to -1.7 eur vs previous 4.36 eur
     
  • France Jan 2019 imports, eur approx time increase to 46.65 eur vs previous 46.47 eur (revised from 47.12 eur)
     
  • France Jan 2019 exports, eur approx time decrease to 42.46 eur vs previous 42.9 eur (revised from 42.45 eur)
     
  • France Jan 2019 trade balance, eur, sa decrease to -4.2 eur vs previous -3.57 eur (revised from -4.65 eur)
     
  • France Jan 2019 industrial output mm increase to 1.3 % (forecast 0.1 %) vs previous 0.8 %
     
  • France Jan 2019 current account increase to 0.9 eur vs previous -0.1 eur (revised from -1.1 eur)
     
  • Germany Jan 2019 industrial orders mm decrease to -2.6 % (forecast 0.5 %) vs previous -1.6 %
     

Economic Data Ahead

  • (0815 ET/1315 GMT) Canadian Mortgage and Housing Corp is expected to report that housing starts for February slightly decreased to a seasonally adjusted annualized rate of 205,000, compared with 208,000 in January.
     
  • (0830 ET/1330 GMT) Canada's releases industrial capacity utilization data for the fourth quarter. The indicator stood at 82.6 percent in the previous quarter.
     
  • (0830 ET/1330 GMT) The U.S. Department of Commerce is expected to report that housing starts increased to an annualized rate of 1.97 million units in January from 1.078 million units in December.
     
  • (0830 ET/1330 GMT) The U.S. building permits are likely to have decreased to a 1.289 million-unit pace in January from a 1.326 million-unit pace in December.
     
  • (0830 ET/1330 GMT) The U.S. Labor Department releases nonfarm payrolls report for the month of February. The report is likely to show 180,000 jobs were added compared with an increase of 304,000 in January.
     
  • (0830 ET/1330 GMT) The U.S. Bureau of Labor Statistics will release labor force participation rate for the month of February. The rate stood at 63.2 percent in the previous month.
     
  • (0830 ET/1330 GMT) The U.S. Labor Department is expected to report that the unemployment rate dipped to 3.9 percent in February from a reading of 4 percent in January.
     
  • (0830 ET/1330 GMT) The United States' average hourly earnings are likely to rise 0.3 percent in February from 0.1 percent in the month before.
     
  • (0830 ET/1330 GMT) Statistics Canada releases employment report for February. The economy did not create any jobs, compared to a rise of 66,800 jobs in January, while the participation rate is expected to edge down to 65.4 percent from 65.8 percent in the previous month.
     
  • (0830 ET/1330 GMT) Canada's unemployment rate is expected to stay unchanged at 5.8 percent for the month of February.
     
  • (1300 ET/1800 GMT) Baker Hughes reports U.S. Oil Rig Count. 

Key Events Ahead

  • (0800 ET/1300 GMT) Deputy Governor of Irish Central Bank Donnery speaks in Dublin
     
  • (1130 ET/1630 GMT) ECB board member Yves Mersch speaks at a conference in Luxembourg
     

FX Beat

DXY: The dollar index eased from its 2019 highs as investors cautiously awaited the release of U.S. February payrolls data that could provide fresh insights on the strength of the U.S. labour market. The greenback against a basket of currencies traded 0.2 percent down at 97.43, having touched a high of 97.71 on Thursday, its highest since December. FxWirePro's Hourly Dollar Strength Index stood at 44.96 (Neutral) by 1000 GMT.

EUR/USD: The euro steadied after slumping to a 21-month low in the prior session on dovish signals from the European Central Bank. The ECB cut its growth forecasts, delayed a possible interest rate increase until 2020 and launched a new round of cheap bank loans. The European currency traded 0.2 percent up at 1.1217, having touched a low of 1.1176 the day before, its lowest since June 2017. FxWirePro's Hourly Euro Strength Index stood at -70.98 (Bearish) by 1000 GMT. Immediate resistance is located at 1.1234 (23.6% retracement of 1.1176 and 1.1496), a break above targets 1.1269 (38.2% retracement). On the downside, support is seen at 1.1150, a break below could drag it till 1.1110.

USD/JPY: The dollar plunged to a 1-week trough as weaker-than-expected Chinese exports data heightened market fears about a global economic slowdown. Moreover, persisting concerns over the U.S.-China trade deal intensified the selling pressure around the pair. The major was trading 0.4 percent down at 111.16, having hit a low of 110.95 earlier, its lowest since February 28. FxWirePro's Hourly Yen Strength Index stood at 47.99 (Neutral) by 1000 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of U.S. building permits, housing starts, nonfarm payroll and unemployment data. Immediate resistance is located at 112.20, a break above targets 112.60 (Dec. 20 High). On the downside, support is seen at 110.88 (21-DMA), a break below could take it lower at 110.66 (Feb.28 Low).

GBP/USD: Sterling consolidated near a 2-week low hit in the previous session as investors awaited headlines on the progress of Brexit negotiations between the European Union and British officials. The major traded flat at 1.3088, having hit a low of 1.3068 on Thursday; it’s lowest since Feb.25. FxWirePro's Hourly Sterling Strength Index stood at -48.92 (Neutral) 1000 GMT. Immediate resistance is located at 1.3162 (5-DMA), a break above could take it near 1.3254 (March 4 High). On the downside, support is seen at 1.3050 (Feb. 25 Low), a break below targets 1.3011 (Feb. 20 Low). Against the euro, the pound was trading 0.2 percent down at 85.71 pence, having hit a low of 86.45 on Tuesday, it’s lowest since Feb 26.

USD/CHF: The Swiss franc retreated from a near 4-month trough, as the greenback pulled back from multi-week peaks ahead of U.S. non-farm payroll report. The major trades 0.2 percent down at 1.0098, having touched a high of 1.0124 on Thursday; it’s highest since November 13. FxWirePro's Hourly Swiss Franc Strength Index stood at -128.56 (Highly Bearish) by 1000 GMT. On the higher side, near-term resistance is around 1.0060 (February 19 High) and any break above will take the pair to next level till 1.0099 (February 11 High). The near-term support is around 1.0001 (February 19 Low), and any close below that level will drag it till 0.9983 (February 25 Low).

Equities Recap

European shares plunged as downbeat China trade data and weak German industrial orders stoked fears of a sharp global economic slowdown.

The pan-European STOXX 600 index slumped 0.5 percent at 372.22 points, while the FTSEurofirst 300 index declined 0.7 percent to 1,460.22 points.

Britain's FTSE 100 trades 0.9 percent down at 7,094.02 points, while mid-cap FTSE 250 eased 0.8 to 19,037.31 points.

Germany's DAX fell 0.6 percent at 11,446.17 points; France's CAC 40 trades 0.4 percent lower at 5,245.15 points

Commodities Recap

Crude oil prices dropped over 1 percent amid a worsening global economic outlook after the European Central Bank warned of continued weakness. International benchmark Brent crude was trading 1.1 percent down at $65.30 per barrel by 0426 GMT, having hit a high of $66.97 on Thursday, its highest since March 1. U.S. West Texas Intermediate was trading 1.1 percent lower at $55.78 a barrel, after rising as high as $57.85 last week, its highest since the November 16.

Gold prices rebounded from multi-week lows, as worries about a sharp global economic slowdown boosted the safe-havens' demand. Spot gold rose 0.7 percent to $1,294.46 per ounce as of 1019 GMT, having touched a low of $1,280.57 on Thursday, its lowest since January 25. U.S. gold futures gained 0.5 percent to $1,292.90.

Treasuries Recap

The U.S. Treasuries remained flat during afternoon session ahead of the country’s non-farm payrolls data for the month of February and the unemployment rate for the similar period, both scheduled to be released today by 13:30GMT respectively. The yield on the benchmark 10-year Treasury yield hovered around 2.638 percent, the super-long 30-year bond yields traded flat at 3.026 percent and the yield on the short-term 2-year too traded nearly flat at 2.465 percent.

The German bunds remained tad higher during European session on the last trading day of the week amid a muted session that witnessed data of little economic significance. The German 10-year bond yields, which move inversely to its price, slipped 1 basis point to 0.058 percent, the yield on 30-year note also edged nearly 1 basis point lower at 0.721 percent and the yield on short-term 2-year hovered around -0.542 percent.

The Japanese government bond yields slumped towards the end of the Asian session, tracking the footsteps of the U.S. Treasuries after the ECB’s stimulus-lending decision and stance on delayed rate hikes weighed on global government bonds. The yield on the benchmark 10-year JGB note, which moves inversely to its price, slumped 3 basis points to -0.029 percent, the yield on the long-term 30-year plunged nearly 4 basis points to 0.590 percent and the yield on short-term 2-year suffered 14-1/2 basis points to -0.144 percent

The Australian government bonds jumped during Asian trading session tracking a similar movement in the United States’ Treasuries after the European Central Bank (ECB) decided to delay its plan of interest rate hike and launch a program of banking stimulus lending in the eurozone. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, plunged nearly 5-1/2 basis points to 2.030 percent, the yield on the long-term 30-year bond slumped nearly 4-1/2 basis points to trade at 2.605 percent and the yield on short-term 2-year traded tad lower at 1.674 percent.

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

April 22 07:00 UTC Released

TRConsumer Confidence

Actual

63.5 %

Forecast

Previous

59.4 %

April 22 07:00 UTC Released

MYReserves

Actual

103.5 0

Forecast

Previous

103 0

January 31 00:00 UTC 642666642666m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 642666642666m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 654486654486m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 642666642666m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 654486654486m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 642666642666m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 642666642666m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 642666642666m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.