Market Roundp
• Boris Johnson will now back UK PM May's Brexit deal - Times reporter.
• Conservative Party lawmakers move to back PM May's deal.
• Britain's May says she will quit if her Brexit deal passes.
• UK retail sales fall most in 17 months as Brexit nears-CBI.
• ECB can delay rate hike again, mitigate negative rates if needed: Draghi.
• US Jan International Trade $, -51.1 bln, -57.0 bln forecastt, -59.8 bln previous, -59.9 bln revised.
• US Q4 Current Account, -134.4 bln, -130.0 bln forecast, -126.6 bln previous
• US 22 Mar, w/e MBA Purchase Index, 267.5, 251.5 previous
• US 22 Mar, w/e Mortgage Market Index, 424.6, 390.0 previous
• US 22 Mar, w/e MBA Mortgage Applications, 8.9%, 1.6% previous
• CA Jan Trade Balance C$, -4.25 bln, -3.50 bln forecast, -4.59 bln previous, -4.82 bln revised
• CA Jan Exports C$, 47.58 bln, 46.31 bln prev, 46.23 bln revised.
• CA Jan Imports C$, 51.82 bln, 50.51 bln forecast, 50.90 bln previous, 51.05 bln revised
Looking Ahead - Economic Data (GMT)
• 27 Mar 23:50 Japan 23 Mar, w/e Foreign Bond Investment JPY, -571.6 bln previous
• 27 Mar 23:50 forecast 23 Mar, w/e Foreign Invest JP Stock JPY, -1,588.9 bln previous
• 28 Mar 00:00 New Zealand Mar NBNZ Business Outlook, -30.9 previous
• 28 Mar 00:00 New Zealand Mar NBNZ Own Activity, 10.5 previous
Looking Ahead - Events, Other Releases (GMT)
• N/A IMF chief Christine Lagarde, Federal Reserve Vice Chair Richard H. Clarida and Banque de France Governor François Villeroy de Galhau to speak at a conference in Paris.
• 08:10 Opening remarks by ECB Vice President Luis de Guindos at the joint conference of the ECB and the Journal of Money, Credit and Banking 'Financial Intermediation, Regulation and Economic Policy' in Frankfurt, Germany
• 10:00 European Central Bank (ECB) Governing Council member and OeNB governor Ewald Nowotny to address a news conference in Vienna
• 11:15 Federal Reserve Vice Chair Randal Quarles speaks at the Joint Conference of the European Central Bank and the Journal of Money, Credit and Banking: Financial Intermediation, Regulation and Economic Policy: The 50th Anniversary of the Journal of Money, Credit and Banking in Frankfurt, Germany
• 12:00 ECB policymaker and Bank of France Governor Francois Villeroy is to open a conference at the French central bank entitled "The Euro Area: Staying the Course through Uncertainties" in Paris
• 12:00 Dutch central bank president Klaas Knot to address a press conference in light of bank's 2018 annual report in Amsterdam
• 13:30 Federal Reserve Vice Chair Vice Chair Richard Clarida participates in a panel discussion at the Banque de France and European Money and Finance Forum Colloquium in Paris
• 14:00 Federal Reserve Governor Michelle Bowman speaks in a telephone town hall at the Independent Community Bankers Association of New Mexico (ICBA/NM) 2019 Ag Lenders Conference in Deming, New Mexico
• 15:30 Federal Reserve Bank of Atlanta President Raphael Bostic participates in "Workforce Development, Income Mobility and Income Inequality" panel before event, "From Bankhead to Buckhead: Prosperity for All" in Atlanta
• 17:00 Swiss National Bank Governing board member Andrea Maechler will deliver a speech at Money Market Event, Zurich
• 17:15 Federal Reserve Bank of New York President John Williams participates in moderated discussion on the economy and answers questions from local business, nonprofit, and higher education communities in San Juan, Puerto Rico
• 18:30 Federal Reserve Bank of New York President John Williams participates in a small business and entrepreneur roundtable discussion in San Juan, Puerto Rico
• 19:15 Reserve Bank of New Zealand Governor Adrian Orr delivers speech on the future of New Zealand's monetary policy framework - open invitation in Wellington
• 22:00 Federal Reserve Bank of St. Louis President James Bullard gives presentation on the U.S. economy and monetary policy before the Center for Research on the Wisconsin Economy (CROWE) Spring Economic Outlook Forum in Madison, Wisconsin
Currency Summaries
EUR/USD: The euro slipped declined against the U.S. dollar on Wednesday, as fears of global economic slowdown and uncertainty about the impact of a potentially chaotic Brexit on the euro zone weighed on single currency. Major currency markets were quiet as risk appetite remained fragile following a selloff last week triggered by fears of slowing global growth. The euro was down 0.14 percent at $1.1250. An index that tracks the dollar versus a basket of six major currencies was down 0.06 at 96.86. Immediate resistance can be seen at 1.1272 (38.2% retracement level), an upside break can trigger rise towards 1.1309 (50% retracement level).On the downside, immediate support is seen at 1.1237 (23.6% retracement level), a break below could take the pair towards 1.1200 (Psychological level).
GBP/USD: The pound inched up against dollar on Wednesday, after British Prime Minister Theresa May said she would step down if lawmakers vote in favour of her twice-defeated EU divorce deal.May's last-ditch attempt to persuade rebels in her Conservative Party to back her lifted the pound slightly but uncertainty about how, or even if, Brexit will proceed kept investors wary.The pound rose 0.26 percent to a day's high of $1.3267 in a broadly quiet session. Immediate resistance can be seen at 1.3269 (38.2% retracement level), an upside break can trigger rise towards 1.3341(23.6% retracement level).On the downside, immediate support is seen at 1.3210 (50% retracement level), a break below could take the pair towards 1.3151 (61.8% retracement level).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday as bond yields hit new lows and data showed improvement in Canada's trade deficit that was less than expected. Canada’s trade deficit narrowed in January to C$4.25 billion, as exports grew at a faster rate than imports, Statistics Canada said. Analysts had forecast a deficit of C$3.50 billion. At (1947 GMT), the Canadian dollar was trading 0.3 percent lower at 1.3409 to the greenback. The currency, which touched on Monday a two-week low at 1.3445, traded in a range of 1.3377 to 1.3429. Immediate resistance can be seen at 1.3442 (38.2% retracement level), an upside break can trigger rise towards 1.3500 (Psychological Level).On the downside, immediate support is seen at 1.3370 (50% retracement level), a break below could take the pair towards 1.3298 (61.8% retracement level).
USD/JPY: The dollar edged lower against the Japanese yen on Wednesday, as fears of a possible recession in the United States. Increased demand for safe haven yen. Concerns that the global economy will slow pushed bond yields lower, providing support for yen. The 10-year U.S. Treasury yield fell further, having fallen below the yield for three-month bills on Friday for the first time since 2007, inverting the yield curve. An inversion is widely seen as indicating an economic recession. Strong resistance can be seen at 110.82 (50% retracement level)., an upside break can trigger rise towards 110.82 (50% retracement level).On the downside, immediate support is seen at 111.00 (Psychological Level), a break below could take the pair towards 109.59 (23.6% retracement level).
Equities Recap
European shares ended flat on Wednesday after swinging between gains and losses through the day, with strength in banks and auto stocks offset by weakness in the technology and healthcare sectors.
The pan-European FTSEurofirst 300 ended the day up by 0.05 percent, Germany's Dax ended down by 0.05 percent, France’s CAC finished the day down by 0.12 percent.
U.S. stocks eased on Wednesday as U.S. Treasury yields fell again and a prolonged inversion in the yield curve fanned growth worries.
Dow Jones closed down by 0.13 percent, S&P 500 ended down by 0.47 percent, Nasdaq finished the day down by 0.63 percent.
Treasuries Recap
Benchmark 10-year Treasury yields fell to 15-month lows on Wednesday as the New Zealand and European central banks adopted a dovish tone on interest rates and investors worried about a global recession.
Ten-year Treasuries gained 8/32 in price to yield 2.386 percent, after falling to 2.352 percent overnight, the lowest since December 2017.
Commodities Recap
Gold prices dipped on Wednesday as weak stock markets and falling bond yields reflected worries about a global economic slowdown.
Spot gold was down 0.45 percent at $1,309.32 per ounce as of 2018 GMT . U.S. gold futures settled down 0.3 percent at $1,310.4 per ounce.
Oil prices slumped on Wednesday after government data showed U.S. crude inventories grew more than expected last week as a Texas chemical spill hampered exports.
Brent crude futures settled at $67.83 a barrel, down 14 cents or 0.2 percent. U.S. crude futures settled at $59.41 a barrel, falling 53 cents or 0.9 percent.
