America’s Roundup: Dollar retains advantage amid coronavirus crisis, Wall Street slides, Gold surges 2%, Oil edges higher, U.S. gasoline slumps over 30% on sinking demand-March 24th,2020

Market Roundup

• US Feb Chicago Fed National Activity 0.16, -0.33 previous

• Canada Jan Wholesale Sales (MoM) 1.8%,-0.2% forecast 1.0% previous

• Russia  GDP Monthly (YoY) 2.9%,1.7% previous

• French 12-Month BTF Auction -0.534%,-0.625% previous

• French 3-Month BTF Auction -0.528%,-0.608% previous

• French 6-Month BTF Auction -0.535%,-0.615% previous

• Eurozone March Consumer Confidence -11.6, -14.2  forecast, -6.6 previous

Looking Ahead - Economic Data (GMT)    

• 00:30 Japan March Manufacturing PMI 47.8 previous

• 00:30 Japan Services PMI 46.8 previous

• 00:30 Japan BoJ Core CPI (YoY) 0.3% previous

• 00:30 Japan Leading Index 90.3 forecast, 91.6 previous

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro declined against the U.S. dollar on Monday as investors continued hoarding dollars in a bid to stay liquid amid a worsening coronavirus epidemic. A rising tide of national lockdowns and restrictions on travel and daily life has heightened fears of a deep recession, overshadowing efforts by policymakers to soften the blow. Despite recent easing measures by the U.S. Federal Reserve, the dollar has maintained its strength as the uncertainty around the virus spread and its impact has accelerated the flight to cash and pushed investors to liquidate holdings across asset classes. Immediate resistance can be seen at 1.0776 (38.2% fib), an upside break can trigger rise towards 1.0816 (50% fib).On the downside, immediate support is seen at 1.0726 (23.6% fib), a break below could take the pair towards 1.0650 (23rd March low).

GBP/USD: Sterling declined against dollar on Monday as investors dumped currencies they consider riskier to own amid the coronavirus pandemic. Sterling has been under pressure because of a massive wave of selling of most currencies other than the dollar, which is the world’s most liquid currency and the safe haven of choice when confidence evaporates from financial markets. The pound has also been hit by investor concerns that Britain’s approach to dealing with the virus, which has seen a more staggered disruption to economic and everyday life than in other countries, is not the right one. Immediate resistance can be seen at 1.1676 (50% fib), an upside break can trigger rise towards 1.1781 (61.8% fib).On the downside, immediate support is seen at 1.1570 (38.2% fib), a break below could take the pair towards 1.1446 (23.6% fib).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as the Federal Reserve announced additional measures to ease the economic impact of the coronavirus outbreak and domestic data showed a surprise increase in wholesale trade. The Fed took unprecedented steps to support U.S. households and companies more directly with credit, helping to boost U.S. s tocks. At (1314 GMT), the Canadian dollar was trading 0.3% higher at 1.4381 to the greenback. The currency, which on Thursday hit a four-year low at 1.4669, traded in a range of 1.4337 to 1.4492. Immediate resistance can be seen at 1.4566 (Daily high), an upside break can trigger rise towards 1.4677 (19th March high).On the downside, immediate support is seen at 1.4430 (23.6% fib), a break below could take the pair towards 1.4293 (38.2% fib).

USD/JPY: The dollar edged lower against the Japanese yen Monday as unprecedented support from the U.S. Federal Reserve failed to lift global stock markets on Monday as investors continued to fret over the economic and human toll of the coronavirus pandemic. Traditional safe-havens like Japanese yen and gold rose as investors dumped riskier and higher-yielding assets looked for a place to park their money. Strong resistance can be seen at 111.00 (38.2% fib), an upside break can trigger rise towards 112.40 (23.6% fib).On the downside, immediate support is seen at 110.81 (50 % fib), a break below could take the pair towards 108.00 (Psychological level). 

Equities Recap

European shares fell again on Monday as the continued spread of the coronavirus fed into panic over its economic shock, with a recession in 2020 looking likely.

UK's benchmark FTSE 100 closed down by 3.79 percent, Germany's Dax ended down by 2.10 percent, France’s CAC finished the day down by 3.22 percent.

Wall Street’s slide deepened on Monday as the rapidly spreading coronavirus forced more U.S. states into lockdown, eclipsing optimism from an aggressive policy easing by the Federal Reserve and putting the S&P 500 on pace for its worst month since World War Two.

Dow Jones closed down by 3.04 percent, S&P 500 ended down at 2.93 percent, Nasdaq finished the day down by 0.27 percent.    

Treasuries Recap

U.S. Treasury yields were lower on Monday as investors worried about the economic crisis underway, even after the Federal Reserve announced enormous stimulus measures to combat the blow dealt to the U.S. economy by the coronavirus pandemic.

The benchmark 10-year yield was last down 20.5 basis points at 0.733%, with the two-year yield last down 9.8 basis points to 0.268%. The long bond was down 18.4 basis points to 1.378%.    

Commodities Recap

Gold prices soared more than 2% on Monday, shrugging off early losses after the U.S. Federal Reserve mounted aggressive new steps to combat the economic impact from coronavirus outbreak, boosting investors sentiment.    

Spot gold was up 1.7% at $1,522.49 an ounce by 10:23 a.m. EDT (1423 GMT). U.S. gold futures  surged 2.8% to $1,526.10 an ounce.

Oil prices inched higher on Monday, while U.S. gasoline prices plunged more than 30% to a record low as global restrictions on travel to slow the spread of coronavirus destroyed demand for fuel.    

Brent crude futures ended the session up 5 cents at $27.03 a barrel while West Texas Intermediate (WTI) crude futures for May delivery rose 73 cents, or 3.2%, to $23.36 a barrel.