Market Roundup
• U.S. weekly jobless claims lowest since 1969
• U.S. producer prices post biggest rise in five months
• IMF's Lagarde says Brexit delay avoids 'terrible outcome'
• White House's Kudlow says Jerome Powell can turn into good Fed chairman
• U.S. economy 'healthy' from a monetary policy perspective -Fed's Williams
• IMF warns bigger-than-expected China slowdown among risks to global economy
• EU clears way for start of formal trade talks with U.S.
• US 6 Apr w/e, Initial Jobless Claims, 196k, 211k forecast, 202k previous, 204k revised
• US 30 Mar w/e, Continued Jobless Claims, 1.713 mln, 1.738 mln forecast, 1.717 mln previous, 1.726 mln revised
• US Mar PPI Final Demand MM, 0.6%, 0.3% forecast, 0.1% previous
• US Mar PPI Final Demand YY, 2.2%, 1.9% forecast, 1.9% previous
• US Mar PPI Ex-food/Energy YY, 2.4%, 2.4% forecast, 2.5% previous
• CA Feb New Housing Price Index, 0.0%, 0.0% forecast, -0.1% previous
• Germany to halve 2019 economic growth forecast to 0.5 pct - Spiegel
Looking Ahead - Economic Data (GMT)
• 11 Apr 22:30 New Zealand Mar Manufacturing PMI, 53.7 previous
• 11 Apr 22:45 New Zealand Mar Elec Card Retail Sale YY, 3.4% previous
• 12 Apr 02:00 Japan Apr TR IPSOS PCSI, 44.92 previous
• 12 Apr 06:30 China Mar Exports YY, 7.3% forecast, -20.8% previous
• 12 Apr 06:30 China Mar Imports YY, -1.3% forecast, -5.2% previous
• 12 Apr 06:30 China Mar Trade Balance USD, 7.05 bln forecast, 4.08 bln previous
Looking Ahead - Events, Other Releases (GMT)
• N/A 2019 Spring Meetings of the World Bank Group and the International Monetary Fund in Washington D.C.
• 11:00 ECB board member Jens Weidmann and German Economy Minister Olaf Scholz to hold a press event in Washington D.C.
• 12:45 European Central Bank's chief economist Peter Praet takes part in an event titled "Monetary Policy In a New Normal" in Washington D.C.
• 16:30 German Finance Minister Olaf Scholz holds a speech at the Peterson Institute for International Economics in Washington D.C.
• 16:30 BoE Mark Carney speaks at an IMF forum in Washington D.C.
• 18:00 Deputy Governor Timothy Lane of the Bank of Canada will participate in a panel discussion at the IMF in Washington D.C.
Currency Summaries
EUR/USD: The euro slipped lower against the U.S. dollar on Thursday, as dollar was boosted after upbeat economic data. The number of Americans filing initial applications for unemployment benefits dropped to a 49-1/2-year low last week, pointing to sustained labor market strength that could counter fears of a sharp slowdown in economic growth. Claims have declined for four straight weeks. U.S. producer prices increased by the most in five months in March, the Labor Department reported, with its producer price index for final demand rising 0.6 percent in March, lifted by a surge in the cost of gasoline. Despite the top line increase, underlying wholesale inflation was tame. Immediate resistance can be seen at 1.1299 (50% retracement level), an upside break can trigger rise towards 1.1353 (61.8% retracement level).On the downside, immediate support is seen at 1.1248 (38.2% retracement level), a break below could take the pair towards 1.1182 (23.6% retracement level).
GBP/USD: The pound stumbled below $1.31 against dollar on Thursday, after a delay of up to six months to Brexit left traders scratching their heads about the direction for the British currency, with few expecting wild price swings in the months ahead. The overnight deal at an emergency EU summit to postpone Britain's exit from the bloc to Oct. 31 meant it would not crash out on Friday without a treaty to smooth its passage. Prime Minister Theresa May's request for a shorter delay to June 30 was rebuffed by the 27 EU member state heads of government. The pound has been stuck between a range of $1.29 and $1.34 since mid-February, with less volatility than in earlier periods of Brexit-related disarray. On Thursday the pound edged lower to $1.3057. Immediate resistance can be seen at 1.3109 (50% retracement level), an upside break can trigger rise towards 1.3174 (61.8% retracement level).On the downside, immediate support is seen at 1.3045 (38.2% retracement level), a break below could take the pair towards 1.2984 (April 5th Low).
USD/CAD: The Canadian dollar fell to a three-day low against its U.S. counterpart on Thursday, as oil prices slipped and the U.S. dollar was broadly stronger against most major peers. Oil prices fell more than 1% after sources said the Organization of the Petroleum Exporting Countries may raise output from July if Venezuelan and Iranian supplies fall further and prices keep rallying. The Canadian dollar traded 0.44 % lower at 1.3375 to the greenback . The currency, which touched its strongest intraday level since March 21 on Tuesday at 1.3285, traded in a range of 1.3313 to 1.3397.. Immediate resistance can be seen at 1.3410 (50% retracement level), an upside break can trigger rise towards 1.3473 (61.8% retracement level).On the downside, immediate support is seen at 1.3344 (50% retracement level), a break below could take the pair towards 1.3197 (23.6% retracement level).
USD/JPY: The U.S. dollar strengthened against the yen on Thursday, as dollar gained on strong producer price and jobless-claims data .The number of Americans filing initial applications for unemployment benefits dropped to a 49-1/2-year low last week, pointing to sustained labor market strength that could counter fears of a sharp slowdown in economic growth. Claims have declined for four straight weeks. The dollar was 0.56 higher versus the Japanese yen at 111.64. Strong resistance can be seen at 111.82 (23.6% retracement level), an upside break can trigger rise towards 112.00 (Psychological level).On the downside, immediate support is seen at 110.79 (38.2% retracement level), a break below could take the pair towards 109.95 (50% retracement level).
Equities Recap
European shares ground higher on Thursday, buoyed by gains among bank and travel stocks, with risk appetite aided by a European Central Bank official expressing willingness to support the euro zone.
The UK's benchmark FTSE 100 closed down by 0.04 percent, FTSEurofirst 300 ended the day up by 0.14 percent, Germany's Dax ended up by 0.33 percent, and France’s CAC finished the up by 0.74 percent.
The S&P 500 ended little changed on Thursday as growing anxiety over a global economic slowdown offset upbeat data and investors waited for earnings season to kick into high gear.
Dow Jones closed down by 0.06 percent, S&P 500 ended up 0.01 percent, Nasdaq finished the day down by 0.22 percent.
Treasuries Recap
U.S. Treasury yields rose on Thursday after generally solid data on U.S. jobless claims and producer prices that may have eased worries about a steep downturn for the U.S. economy.
In afternoon trading, U.S. 10-year note yields rose to 2.502%, up from 2.477% late on Wednesday.
Yields on U.S. 30-year bonds were also higher, at 2.935% , up from 2.904% on Wednesday.
Commodities Recap
Gold prices fell more than 1% on Thursday, slipping below the key $1,300 level, as robust economic data from the United States boosted the dollar, taking the sheen off the safe-haven metal.
Spot gold was down 1.8% to $1,292.54 per ounce as of (2042 GMT). U.S. gold futures settled 1.6% lower at $1,293.3.
Oil prices fell on Thursday after sources said OPEC may raise output from July if Venezuelan and Iranian supplies fall further and prices keep rallying.
Rising U.S. crude stockpiles also dragged U.S. futures down by more than $1 a barrel. West Texas Intermediate (WTI) crude fell $1.03 to settle at $63.58 a barrel.
