America’s Roundup: Dollar rebounds after Fed rate cut blow, Wall Street surges, Gold steady, Oil rises $1-March 5th,2020

Market Roundup

• Biden sweeps South in Democratic presidential primaries

• US Feb ADP Nonfarm Employment Change 183K, 170K forecast, 209K previous

• Canada Labor Productivity (QoQ) (Q4) -0.1%,0.2% previous

• US Feb Markit Composite PMI 49.6, 49.6 forecast, 53.3 previous

• US Feb Services PMI 49.4, 49.4 forecast, 53.4 previous

• US Feb ISM Non-Manufacturing Business Activity 57.8 , 58.8 forecast, 60.9 previous

• US Feb ISM Non-Manufacturing PMI 57.3, 54.9 forecast, 55.5 previous

• Canada BoC Interest Rate Decision 1.25%,1.75% forecast, 1.75% previous

• US Crude Oil Inventories 0.785M, 2.644M forecast, 0.452M previous

Looking Ahead - Economic Data (GMT)

• 23:30 Japan Foreign Bonds Buying 658.7B previous

• 23:30 Japan Foreign Investments in Japanese Stocks -68.6B previous

• 00:01 UK Feb BRC Retail Sales Monitor (YoY) 0.0% previous

• 00:30 Australia Jan Exports (MoM) 1% previous

• 00:30 Australia Jan Imports (MoM) 2% previous

Looking Ahead - Economic events and other releases (GMT)

• 22:00 US FOMC Member Bullard Speech

Currency summaries

EUR/USD: The euro edged lower against dollar on Wednesday as dollar gained after strong showing by Joe Biden in the U.S. Democratic presidential primaries, though an economy-weakening coronavirus outbreak kept investors on tenterhooks. That helped U.S dollar to bounce back from declines on Tuesday after investors deemed the U.S. Federal Reserve’s surprise 50-basis-point interest rate cut to be an inadequate response to an epidemic that has so far killed more than 3,000 people worldwide and threatens to slow global growth. The euro was last up 0.11% at $1.0988 . Immediate resistance can be seen at 1.1190 (Higher BB), an upside break can trigger rise towards 1.1200 (Psychological level).On the downside, immediate support is seen at 1.1089 ( 5 DMA), a break below could take the pair towards 1.0986 (9DMA).

GBP/USD:Sterling strengthened against dollar on Wednesday, as incoming Bank of England Governor Andrew Bailey said action could be needed to offset the effects of the coronavirus. Bailey said any BoE measures would be best done in tandem with Britain’s government, curbing expectations the bank might follow Tuesday’s emergency rate cut by the U.S. Federal Reserve. The pound was flat at $1.2871 against the dollar, after dropping as low as $1.2771 earlier. Against the euro it was 0.6% higher at 86.70 pence per euro, reclaiming some of the more than 5% it has lost over the past two weeks. Immediate resistance can be seen at 1.2879 (9 DMA), an upside break can trigger rise towards 1.2914(11 DMA).On the downside, immediate support is seen at 1.2730 (Lower BB), a break below could take the pair towards 1.2700 (Psychological level).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday as the Bank of Canada delivered its biggest interest rate cut in more than 10 years, matching the previous day's cut in U.S. rates, and signaled that it was ready to ease further due to the coronavirus outbreak. It was the first the Bank of Canada had cut by more than 25basis points since March 2019, when the economy was in recession due to the global financial crisis. The Federal Reserve cut U.S. rates 50 basis on Tuesday. Immediate resistance can be seen at 1.3433 (Higher BB), an upside break can trigger rise towards 1.3500 (Psychological level).On the downside, immediate support is seen at 1.3377 (5 DMA), a break below could take the pair towards 1.3332 (9 DMA.)

USD/JPY: The dollar climbed against the Japanese yen on Wednesday as upbeat data also supported the greenback. U.S. private payrolls increased more than expected in February, pointing to labor market strength before a recent escalation of recession fears ignited by the coronavirus epidemic.U.S.services sector activity accelerated to a one-year high in February, suggesting underlying strength in the economy despite the coronavirus outbreak. Strong resistance can be seen at 108.06 (5 DMA), an upside break can trigger rise towards 109.18 (9 DMA).On the downside, immediate support is seen at 106.79(lower BB), a break below could take the pair towards 106.00 (Psychological level).

Equities Recap

European shares rose on Wednesday, with defensive sectors gaining the most as investors grappled with the efficacy of monetary stimulus in offsetting the economic impact of the coronavirus.

UK's benchmark FTSE 100 closed up by 1.45 percent, Germany's Dax ended up by 1.19 percent, France’s CAC finished the day up by 1.33 percent.

Wall Street surged on Wednesday, with healthcare stocks providing the biggest boost after Joe Biden overtook Bernie Sanders to become the new front-runner in the race for the Democratic presidential nomination.

At( GMT 19:32 ),Dow Jones closed was last trading by 3.42 percent, S&P 500 was last up by 3.17 percent, Nasdaq was up by 2,93 % percent.

Treasuries Recap

U.S. benchmark Treasury 10-year yields held below 1% on Wednesday, as bond investors continued to flock to safe-haven assets amid persistent uncertainty about the economic impact of the rapidly-spreading coronavirus.

In morning trading, U.S. 10-year yields fell to 0.97%, from 1.017% late on Tuesday. Yields on U.S. 30-year bonds were at 1.613%,down from 1.631% on Tuesday. They touched an all-time trough of1.507% the day before.
Commodities Recap

Gold held steady on Wednesday following a sharp rise in the previous session on the U.S. Federal Reserve’s surprise rate cut, as a firmer dollar and strong uptick in risk sentiment limited bullion’s upside.

Spot gold was up 0.2% at $1,642.85 per ounce by 12:34 p.m. EST (1734 GMT).U.S. gold futures edged 0.1% lower to $1,643.50.

Crude oil prices rose on Wednesday on expectations that major producers have moved closer to an agreement to enact deeper output cuts aimed at offsetting a slump in demand caused by the coronavirus outbreak.

Brent crude rose 35 cents, or 0.7%, at $52.24 a barrel at 11:03 a.m. ET (1603 GMT). U.S. West Texas Intermediate (WTI) was up 66 cents, or 1.3%, at $47.80 a barrel.