Market Roundup
- EUR/USD 0.2%, USD/JPY -0.62%, GBP/USD 0.17%, EUR/GBP 0.01%
- DXY -0.22%, DAX 0.53 %, FTSE 0.19%, Brent 0.15%, Gold 0.37%
- Unexpected eurozone slack could slow inflation rebound: ECB's Praet
- EZ HICP Final MM Feb, 0.2%, forecast 0.2%, previous -0.9%
- EZ HICP Final YY Feb, 1.1%, forecast 1.2%, previous 1.2%
- EZ HICP ex F&E MM Feb, 0.3%, forecast 0.3%, previous -1.3%
- EZ HICP ex F&E YY Feb, 1.2%, forecast 1.2%, previous 1.2%
- EZ Labour Costs YY Q4, 1.5%, previous 1.6%
- EZ Wages In Euro Zone Q4, 1.7% previous 1.6%
- Germany Wholesale Price Index MM Feb, -0.3%, previous 0.9%
- Germany Wholesale Price Index YY Feb, 1.2%, f'cast 1.5%, previous 2.0%
- U.S. Chamber of Commerce warns Trump against China tariffs
- Bank of England says UK's reliance on "kindness of strangers" for finance is rising
- Russia to expel UK diplomats as crisis over nerve toxin attack deepens
- Oil prices set for weekly drop as concerns about rising supply weigh
- Gold firms on political concerns, softer dollar
Economic Data Ahead
- (0830 ET/1230 GMT) The U.S. Department of Commerce is expected to report that housing starts decreased to 1.280 million units in February from 1.326 million units in January.
- (0830 ET/1230 GMT) The U.S. building permits are likely to have decreased to a rate of 1.320 million-unit in February from a 1.377 million-unit pace in January.
- (0830 ET/1230 GMT) Statistics Canada releases manufacturing shipments data for the month of January. Manufacturing sales are likely to have decreased 0.8 percent after declining 0.3 percent in December.
- (0830 ET/1230 GMT) The Statistics Canada will report foreign portfolio investment in domestic stocks for the month of January.
- (0830 ET/1230 GMT) The Statistics Canada will release investment in foreign securities figures for the month of January.
- (0915 ET/1315 GMT) The Federal Reserve is likely to report that industrial production rose 0.3 percent in February after decreasing 0.1 in the prior month.
- (0915 ET/1315 GMT) The Federal Reserve Board is expected to report that capacity utilization edged up to 77.7 percent in February from 77.5 percent in January.
- (1000 ET/1400 GMT) The U.S. Labor Department releases Job Openings and Labor Turnover Survey (JOLTS) report for the month of January. The report is expected to show job openings rose to 5.890 million from 5.811 million in December.
- (1000 ET/1400 GMT) The University of Michigan is likely to report that U.S. preliminary consumer sentiment index declined to 99.3 in March, after posting a final reading of 99.7 in February.
- (1300 ET/1700 GMT) Baker Hughes reports U.S. Oil Rig Count.
Key Events Ahead
- No significant event scheduled
FX Beat
DXY: The dollar index declined, reversing some of its previous session gains on reports of more turmoil in the Trump administration. The greenback against a basket of currencies 0.2 percent down at 89.95, having touched a low of 89.56 on Wednesday, its lowest since Mar. 8. FxWirePro's Hourly Dollar Strength Index stood at 37.67 (Neutral) by 1000 GMT.
EUR/USD: The euro rose after tumbling to a 4-day low earlier in the session on European Central Bank chief economist Peter Praet comments, citing that Europe may be regaining some of its long-lost growth potential but a possible drag on already weak inflation. The European currency traded 0.1 percent up at 1.2322, having touched a high of 1.2412 on Wednesday, its highest since Mar. 8. FxWirePro's Hourly Euro Strength Index stood at -2.80 (Neutral) by 1000 GMT. Immediate resistance is located at 1.2347 (10-DMA), a break above targets 1.2412 (Mar. 14 High). On the downside, support is seen at 1.2273 (Mar. 9 Low), a break below could drag it lower 1.2251 (Mar 2 Low).
USD/JPY: The dollar slumped to an over 1-week low as U.S. President Donald Trump decided to replace his national security adviser, H.R. McMaster and on news that U.S. Special Counsel Robert Mueller had issued a subpoena for documents related to Trump's businesses. The major was trading 0.6 percent down at 105.68, having hit a low of 105.64, its lowest since Mar. 7. FxWirePro's Hourly Yen Strength Index stood at 154.79 (Highly Bullish) by 1000 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. building permits, housing starts, industrial production and JOLTS job opening report. Immediate resistance is located at 106.54 (21-DMA), a break above targets 107.04 (Mar 9 High). On the downside, support is seen at 105.45, a break below could take it lower 105.25.
GBP/USD: Sterling gained, reversing previous session losses, and was poised for its biggest weekly rise in a month as investors became cautiously optimistic that Britain would seal a deal at a summit next week over a transition period for its EU exit. The major traded 0.2 percent up at 1.3961, having hit a high of 1.3995 on Wednesday, it’s highest since Feb. 27. FxWirePro's Hourly Sterling Strength Index stood at 66.11 (Bullish) by 1000 GMT. Immediate resistance is located at 1.3988, a break above could take it near 1.4070. On the downside, support is seen at 1.3884 (10-DMA), a break below targets 1.3841 (Mar. 4 Low). Against the euro, the pound was trading 0.05 percent up at 88.27 pence, having hit a high of 88.16 pence earlier, it’s highest since Feb 28.
USD/CHF: The Swiss franc rose after falling to a 6-day low in the previous session, as U.S. political concerns and tensions between the United Kingdom and Russia sent investors towards safe-haven assets. The major trades 0.3 percent down at 0.9489, having touched a high of 0.9519 the day before, it’s highest since Mar. 9. FxWirePro's Hourly Swiss Franc Strength Index stood at 22.96 (Neutral) by 1000 GMT. On the higher side, near-term resistance is around 0.9534 (Mar. 9 High) and any break above will take the pair to next level till 0.9580. The near-term support is around 0.9478 (5-DMA) and any close below that level will drag it till 0.9452 (10-DMA).
Equities Recap
European shares rose, boosted by merger and acquisition activities, while the greenback eased after President Donald Trump announced the removal of H.R. McMaster as his National Security Advisor.
The pan-European STOXX 600 index advanced 0.3 percent to 377.16 points, while the FTSEurofirst 300 index surged 0.2 percent to 1,476.58 points.
Britain's FTSE 100 trades 0.3 percent higher at 7,160.27 points, while mid-cap FTSE 250 fell 0.3 percent to 19,766.74 points.
Germany's DAX rose 0.4 percent at 12,388.76 points; France's CAC 40 trades 0.1 percent fell at 5,262.55 points.
Commodities Recap
Crude oil prices rose but were set to fall this week on concerns among investors about rising supply from the U.S. and other nations threatening to undermine efforts by OPEC and other producers to tighten the market. International benchmark Brent crude was trading 0.3 percent up at $65.19 per barrel by 1005 GMT, having hit a high of $65.81 on Monday, its highest since Mar. 6. U.S. West Texas Intermediate was trading 0.3 percent up at $61.33 a barrel, after rising as high as $62.31 on Monday, its strongest since Mar. 7.
Gold prices edged higher, supported by a weaker dollar amid U.S. political concerns and tensions between the United Kingdom and Russia. Spot gold was up 0.3 percent at $1,319.87 per ounce as of 1007 GMT, having hit a low of $1,313.66 an ounce earlier, its lowest since Mar. 3. U.S. gold futures for April delivery were little changed at $1,317.80.
Treasuries Recap
The U.S. Treasuries jumped after President Donald Trump announced the execution of his Chief Security Advisor HR McMaster, again leaving the U.S. administration in a cloud of shackles, a couple of days after the firing of the Secretary of State Rex Tillerson earlier this week. The yield on the benchmark 10-year Treasuries fell 1 basis point to 2.81 percent, the super-long 30-year bond yields plunged 2 basis points to 3.04 percent and the yield on the short-term 2-year traded steady at 2.28 percent
The German bunds gained after Eurozone’s consumer price inflation index (CPI) for the month of February failed to meet market expectations, thus boosting safe-haven demand. The German 10-year bond yields, which move inversely to its price, slumped nearly 1-1/2 basis points to 0.56 percent, the yield on 30-year note plunged 2 basis points to 1.21 percent and the yield on short-term 2-year traded flat at -0.57 percent.
The Japanese government bonds gained after the country’s industrial production for the month of January, disappointed market participants, coming in lower than anticipations, thus increasing the demand for safe-haven assets. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slipped nearly 1 basis point to 0.03 percent, the yield on the long-term 30-year note remained flat at 0.76 percent and the yield on short-term 2-year traded tad lower at -0.12 percent.
The Australian government bonds rallied on the last trading day of the week, rising more than 6 percent so far this week on growing angst among investors over trade war which would hurt the global economy. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 2-1/2 basis points to 2.702 percent, the yield on the long-term 30-year note dipped 3 basis points to 3.277 percent and the yield on short-term 2-year down 2-1/2 basis points to 1.977 percent.
