Market Roundup
• IMF says global economy cooling, coordinated stimulus may be needed
• EU to agree further Brexit delay but could kick UK out on June 1 -draft
• UK parliament endorses PM May's Brexit delay request
• In new attack, Trump threatens more tariffs against European Union
• US Feb JOLTS Job Openings, 7.087 mln, 7.550 mln forecast, 7.581 mln previous, 7.625 revised
• Mueller report to be released within a week - U.S. attorney general
• UK economy to lose 3.5 pct of GDP in no-deal Brexit - IMF
Looking Ahead - Economic Data (GMT)
• 9 Apr 23:50 Japan Mar Bank Lending YY, 2.3% previous
• 9 Apr 23:50 Japan Mar Corp Goods Price MM, 0.2% forecast, 0.2% previous
• 9 Apr 23:50 Japan Mar Corp Goods Price YY, 1.1% forecast 0.8% previous
• 9 Apr 23:50 Japan Feb Machinery Orders MM, 2.5% forecast, -5.4% previous
• 9 Apr 23:50 Japan Feb Machinery Orders YY, -5.2% forecast, -2.9% previous
• 10 Apr 00:30 Australia Apr Consumer Sentiment, -4.8% previous
Looking Ahead - Events, Other Releases (GMT)
• N/A Governing Council of the ECB holds monetary policy meeting in Frankfurt
• 22:45 Fed's Richard Clarida to deliver keynote on the first day of the two-day Spring 2019 Institute Conference in Minneapolis
• 12:30 ECB President Mario Draghi holds a press conference after an interest rate meeting in Frankfurt
• 15:50 Fed's Randal Quarles, BoE Deputy Governor David Ramsden speak at a Financial Stability Board round-table
discussion in Washington D.C.
• 18:00 Participation by ECB's Benoit Coeure in a panel discussion at a seminar on 'Money and payments in the digital age' organised by the IMF in Washington, D.C.
• 18:00 Federal Open Market Committee will release the minutes from its March 19-20, 2019 policy meeting in Washington D.C.
Currency Summaries
EUR/USD: The euro edged higher against the U.S. dollar on Tuesday, as greenback weakened as concerns about a trade dispute between the United States and the European Union, as well as worries about the global economic outlook weighed on greenback. The IMF warned that growth could slow further due to trade tensions and Britain's potentially disorderly exit from the EU. The European Central Bank is expected to hold borrowing costs on Wednesday, the same day British Prime Minister Theresa May's request to delay Brexit until June 30 will be formally discussed by EU leaders at a special summit. The euro was last trading up 0.03 percent at $1.1265. Immediate resistance can be seen at 1.1311 (38.2% retracement level), an upside break can trigger rise towards 1.1347 (100 DMA).On the downside, immediate support is seen at 1.1200 (Psychological level), a break below could take the pair towards 1.1159 (Lower Bollinger Bands).
GBP/USD: The British pound declined against the dollar on Tuesday, after German government spokesman denied a media report that Chancellor Angela Merkel was willing to put a time limit on the Northern Ireland backstop in Britain's EU withdrawal agreement.The UK currency had briefly jumped to the day's high after the BBC reported that a British eurosceptic lawmaker had been advised that Merkel was willing to put a five-year time limit on the backstop.The pound fell to daily low of $1.3021, down 0.02 percent on the day. Immediate resistance can be seen at 1.3122 (Ichimoku Cloud Top), an upside break can trigger rise towards 1.3200 (Psychological levl).On the downside, immediate support is seen at 1.2976 (200 DMA), a break below could take the pair towards 1.2938 (100 DMA).
USDCAD: The Canadian dollar strengthened to its highest in nearly three weeks against its U.S. counterpart on Tuesday and was on track to add to its winning streak in April, as oil held near a five-month high and the greenback broadly declined. The price of oil, one of Canada's major exports, climbed to its highest since November before turning flat. Concern that violence in Libya could further tighten supply was offset by Russian comments signaling willingness to pump more. The Canadian dollar was last trading 0.2% higher at 1.3291 to the greenback, or 75.24 U.S. cents. Immediate resistance can be seen at 1.3353 (21 DMA), an upside break can trigger rise towards 1.3283 (50 DMA).On the downside, immediate support is seen at 1.3273 (Lower Bollinger Band), a break below could take the pair towards 1.3252 (March 19th low).
USD/JPY: The U.S. dollar weakened against the yen on Tuesday, as traders favored the safe-haven currency after the United States announced it was considering tariffs on $11 billion of European goods and the International Monetary Fund downgraded its outlook on the global economy. On Monday, the U.S. Trade Representative proposed a list of European Union products ranging from large commercial aircraft and parts to dairy products and wine on which to slap tariffs as retaliation for European aircraft subsidies. The dollar was 0.27 lower versus the Japanese yen at 111.16. Strong resistance can be seen at 111.57 (5 DMA), an upside break can trigger rise towards 112.00 (Psychological level).On the downside, immediate support is seen at 110.92 (100 DMA), a break below could take the pair towards 110.79 (50 DMA).
Equities Recap
European shares slid on Tuesday, with most sectors falling after the United States threatened to slap tariffs on goods from the European Union, with worries compounded by the IMF cutting its global growth forecast.
UK's benchmark FTSE 100 closed down by 1.5 percent, the pan-European FTSEurofirst 300 ended the day down by 0.31 percent, Germany's Dax ended down by 0.77 percent, France’s CAC finished the day down by 0.42 percent.
Trade-sensitive industrials dragged Wall Street lower on Tuesday as U.S. President Donald Trump said he would impose tariffs on $11 billion of European goods, and as the International Monetary Fund lowered its global growth outlook.
Dow Jones closed down by 0.71 percent, S&P 500 ended down by 0.58 percent, Nasdaq finished the day down by 0.53 percent.
Treasuries Recap
U.S. Treasury yields slid on Tuesday amid renewed concerns about a trade dispute between the United States and the European Union, as well as worries about the global economic outlook after the International Monetary Fund reduced growth forecasts for 2019.
In late US trading, U.S. 10-year note yields fell to 2.497%, slightly down from 2.519% late on Monday.U.S. 30-year bond yields also dipped to 2.909%, from 2.924% on Monday.
Commodities Recap
Gold rose to its highest in more than a week on Tuesday as the dollar and equities weakened after the International Monetary Fund cut its global economic growth forecasts for the year, with increased buying by central banks lending further support.
Spot gold rose 0.5 percent to $1,304.19 per ounce as of (2029 GMT), having hit its highest since March 28 at $1,306.09. U.S. gold futures settled 0.5 percent higher at $1,308.3.
Oil prices edged lower on Tuesday, slipping off five-month highs after the International Monetary Fund cut its global economic growth forecasts and as Russia signalled it may retreat from its production-cutting deal with OPEC.
Brent settled at $70.61 a barrel, falling 49 cents after hitting $71.34, its highest since November. U.S. crude settled at $63.98 a barrel, down 42 cents, after also reaching a five-month high of $64.79.
