Market Roundup
• US 20 Apr, w/e Initial Jobless Claims, 230k, 200k forecast 192k previous, 193k revised
• US 13 Apr, w/e Continued Jobless Claims, 1.655 mln, 1.699 mln forecast, 1.653 mln previous, 1.654 mln revised
• US Capital Goods surged 1.3% to $70.0 billion
• US Mar Durable Goods, 2.7%, 0.8% forecast, -1.6% previous, -1.1% revised
• ECB's de Guindos keeps door open to more QE "if needed"
• France's Macron offers tax cuts as part of moves to quell 'yellow vest' unrest
• CA Feb Average Weekly Earnings YY, 1.07%, 2.00% previous, 1.91% revised
Looking Ahead - Economic Data (GMT)
• 25 Apr 22:45 New Zealand Mar Trade Balance, 12.0 mln previous
• 25 Apr 22:45 New Zealand Mar Annual Trade Balance, -6.62 bln previous
• 25 Apr 23:30 Japan Apr CPI, Overall Tokyo, 0.9% previous
• 25 Apr 23:30 Japan Mar Jobs/Applicants Ratio, 1.64 forecast, 1.63 previous
• 25 Apr 23:30 Japan Mar Unemployment Rate, 2.4% forecast 2.3% previous
• 25 Apr 23:50 Japan Mar Industrial Output Prelim MM SA, -0.1% forecast 0.7% previous
• 25 Apr 23:50 Japan Mar Retail Sales YY, 0.8% forecast, 0.4% previous, 0.6% revised
• 26 Apr 01:30 AU Q1 PPI YY, 2.0% previous
Looking Ahead - Events, Other Releases (GMT)
• 08:00 ECB's Olli Rehn speaks about the economic outlook for Finland and Europe as well as central bank monetary policy at the Bank of Finland's seminar in Helsinki
• 08:00 Jean Studer, President of the Swiss National Bank, and Thomas Jordan, chairman of the central bank, speak at the SNB's general meeting of shareholders in Berne
Currency Summaries
EUR/USD: The euro edged lower against the U.S. dollar on Thursday, as upbeat U.S. employment and U.S. capital goods orders underscored a strong economy. Data on Thursday showed new orders for U.S.-made capital goods increased by the most in eight months in March. That follows other recent U.S. data that show strength in retail sales and exports which have eased concerns of a sharply slowing U.S. economy. Investors will now await the release of U.S. gross domestic product for the first three months of 2019 for signs of whether the United States remains stronger than other leading economies. The euro fell 0.18% to $1.1132, its lowest since May 2017. Immediate resistance can be seen at 1.1156 (38.2% retracement level), an upside break can trigger rise towards 1.1188 (50% retracement level).On the downside, immediate support is seen at 1.1118 (23.6% retracement level), a break below could take the pair towards 1.1100 (Psychological level).
GBP/USD: Sterling edged lower against the dollar on Thursday, as Brexit concerns and stronger dollar across the board weighed on British pound. The British currency has weakened sharply this week as lawmakers returned from an Easter recess with little sign of progress in May's efforts to convince them to back her Brexit deal. Britain's departure date from the European Union has been pushed back until as late as end-October, but sterling traders are concerned about political uncertainty. Sterling edged lower 0.07 percent to $1.2903, its weakest since mid-February. Immediate resistance can be seen at 1.2928 (38.2% retracement level), an upside break can trigger rise towards 1.2993 (50% retracement level).On the downside, immediate support is seen at 1.2844 (23.6% retracement level), a break below could take the pair towards 1.2800 (Psychological level).
USD/CAD:The Canadian dollar edged higher against its U.S. counterpart on Thursday, but held near its lowest since January as oil prices dipped and after the Bank of Canada slashed its economic growth outlook the day before. Canada’s central bank held its benchmark interest rate steady at 1.75% on Wednesday as expected but removed wording about the need for future rate hikes and lowered its growth forecast for 2019 to 1.2% from 1.7%. At (2025 GMT), the Canadian dollar was trading 0.02% higher at 1.3486 to the greenback, or 74.14 U.S. cents. Immediate resistance can be seen at 1.3515 (38.2% retracement level), an upside break can trigger rise towards 1.3571 (23.6% retracement level).On the downside, immediate support is seen at 1.3467 (50% retracement level), a break below could take the pair towards 1.3426 (61.8% retracement level).
USD/JPY: The dollar weakened against the Japanese yen on Thursday, as investors unwound long bets on greenback after Bank of Japan kept monetary policy steady on Thursday and clarified its intention to keep interest rates very low for a prolonged period.The Japanese strenthed against the dollar after the BOJ announced it intends to keep interest rates very low for a prolonged period, committing to do so at least through around the spring of next year.The dollar was 0.47 percent lower versus the Japanese yen at 111.63.Strong resistance can be seen at 111.94 (50% retracement level), an upside break can trigger rise towards 112.40 (38.2% retracement level).On the downside, immediate support is seen at 111.37 (61.8% retracement level), a break below could take the pair towards 110.77 (April 10th low).
Equities Recap
European shares slipped on Thursday as weak earnings from Nokia and news of failed attempts at mergers added to a downbeat mood on renewed fears of a slowdown in global growth.
UK's benchmark FTSE 100 closed down by 0.55 percent, the pan-European FTSEurofirst 300 ended the day down by 0.19 percent, Germany's Dax ended down by 0.23 percent, France’s CAC finished the day down by 0.34 percent.
The S&P 500 ended Thursday's session slightly lower as a dive in industrials stocks and concerns about slowing global growth overshadowed gains in Facebook Inc and Microsoft Corp.
Dow Jones closed down by 0.50percent, S&P 500 ended down by 1.16 percent, Nasdaq finished the day up by 0.20 percent.
Treasuries Recap
Afternoon trade saw Treasury yields rise ahead of Friday's U.S. gross domestic product report, which is expected to show growth of 2% in the first quarter, a strong outcome after a volatile start to the year in financial markets.
The 10-year yield was last up 1 basis points to 2.533%. At either end of the curve, the two-year note yield was up 1 basis point to 2.330% and the 30-year bond yield was up less than half a basis point to 2.944%.
Commodities Recap
Gold rose to its highest in more than a week on Thursday, supported by a slight retreat in the dollar and a pullback in global equities as demand for riskier assets cooled.
Spot gold was up 0.2 percent at $1,277.25 per ounce as of (2040 GMT) after hitting $1,282.38, the highest since April 16.U.S. gold futures settled unchanged at $1,279.70 an ounce.
il prices eased after Brent touched $75 per barrel on Thursday for the first time in nearly six months on the suspension of some Russian crude exports to Europe as investors second-guessed the market's ability to rally further.
Brent crude futures settled at $74.35, losing 22 cents, or 0.30 percent, after rallying for most of the day to a high of $75.60, the strongest since Oct. 31.
U.S. West Texas Intermediate crude settled at $65.21 a barrel, falling 68 cents, or 1.03 percent, after hitting a session high of $66.28.
