America’s Roundup: Dollar sinks after U.S. Federal Reserve cuts interest rates to battle coronavirus, Wall Street gains, Gold rises, Oil jumps after Fed cuts US interest rates, then pares gain-March 4th,2020

Market Roundup

• Fed cuts rates by half percentage points

• US Redbook (YoY) 5.9%,5.4% previous

• US Redbook (MoM) -0.1%,-0.2%previous

• US Feb ISM NY Business Conditions 51.9%, 45.8% previous

• US Feb ISM-New York Index 867.9, 866.9 previous

• New Zealand GlobalDairyTrade Price Index -1.2%, -2.9% previous

Looking Ahead - Economic Data (GMT)

•21:30 Australia Feb AIG Construction Index 41.3 previous

•21:30 Australia Jan Building Consents (MoM) -0.9%,9.9% previous

•21:30 Australia Services PMI 48.4, 50.6 previous

•00:30 Australia GDP (QoQ) (Q4) 0.3%,0.4% previous

•00:30 Australia GDP (YoY) (Q4) 1.9%,1.7% previous

•00:30 Japan Feb Services PMI 46.7 forecast, 51.0 previous

Looking Ahead - Economic events and other releases (GMT)

• 23:50 US Chicago Fed President Evans Speech

Currency Summaries

EUR/USD: The euro gained against dollar on Tuesday as the U.S. dollar sank after the Federal Reserve cut interest rates in an emergency move to help the world's largest economy fight the blow from a fast-spreading coronavirus.The U.S. central bank said it was cutting rates by half a percentage point to a target range of 1.00% to 1.25%, sending the dollar to a six-week low, before it pared losses. The euro rose 0.23% to $1.`1025. Immediate resistance can be seen at 1.1213 (Daily high), an upside break can trigger rise towards 1.1241(31stDec high).On the downside, immediate support is seen at 1.1051(100 DMA), a break below could take the pair towards 1.0952 (9 DMA).

GBP/USD: Sterling extended gains against the broadly weak dollar on Tuesday after a sudden rate cut by the U.S. Federal Reserve in response to coronavirus damage, while investors bet Britain’s central bank would follow suit.The U.S. Fed stunned markets by cutting interest rates by half a percentage point in an emergency move designed to shield the world’s largest economy from the impact of the coronavirus spread. The currency, which has come under heavy selling pressure in recent days, recovered ground and was boosted further following the Fed’s action. Immediate resistance can be seen at 1.2875 (DMA), an upside break can trigger rise towards 1.2934 (21 DMA).On the downside, immediate support is seen at 1.2731 (Daily low), a break below could take the pair towards 1.2700 (Psychological level).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday, paring some of the previous day's gains, as G7 officials stopped short of specific measures to protect the global economy from the impact of the coronavirus outbreak. Finance ministers and central bank governors from the Group of Seven said they would use all appropriate policy tools to achieve strong, sustainable global growth and safeguard against downside risks posed by the fast-spreading virus.At (2102 GMT), the Canadian dollar was trading 0.4% lower at 1.3376 to the greenback. Immediate resistance can be seen at 1.3400 (Psychological level), an upside break can trigger rise towards 1.3424 (Higher BB).On the downside, immediate support is seen at 1.3319 (9 DMA), a break below could take the pair towards 1.3289 (21 DMA).

USD/JPY: The dollar declined against the Japanese yen on Tuesday as lack of any immediately gratifying measures after global policymakers pledged to address the economic fallout from the coronavirus outbreak Finance ministers from the G7 and central bank governors said in a statement that they would use “all appropriate policy tools” to safeguard against the economic risks posed by the fast-spreading coronavirus. Strong resistance can be seen at 108.40 (200 DMA), an upside break can trigger rise towards 108.91 (Ichimoku Cloud Base).On the downside, immediate support is seen at 106.84 (March 3rd low), a break below could take the pair towards 106.00 (Psychological level).

Equities Recap

European shares rose on Tuesday, as investors counted on further monetary stimulus by central banks after the U.S. Federal Reserve cut interest rates in an emergency move to cushion the economic impact of the coronavirus epidemic.

UK's benchmark FTSE 100 closed up by 3.49 percent, Germany's Dax ended up by 1.08 percent, France’s CAC finished the day up by 3.32 percent.

U.S. stock markets fell sharply on Tuesday on worries that even a half percentage-point cut in interest rates might not be enough to stave off the economic impact of the coronavirus outbreak and halt the worst sell-off in more than a decade.

Dow Jones closed down by 2.42 percent, S&P 500 closed down by 2.85 percent, Nasdaq settled down by 2.99 percent.

Treasuries Recap

U.S. Treasury yields rose after the Federal Reserve slashed interest rates by 50 basis points to ease the economic fallout from the fast-spreading coromavirus.U.S. 10-year yields rose to 1.135%, from 1.108% late on Monday.

Commodities Recap

Gold prices rose on Tuesday on hopes of interest rate cuts by central banks as leading policymakers from the Group of Seven (G7) nations met to discuss how to contain the economic impact from the global coronavirus outbreak.

Spot gold was up 0.8% at $1,602.85 an ounce by 1217 GMT, having gained more than 1% in the previous session. U.S. gold futures firmed 0.6% to $1,604.10.

Oil prices fell in a volatile session on Tuesday, succumbing to fears that the coronavirus would take a heavy toll on energy demand even after the Federal Reserve cut U.S. interest rates and OPEC and allied producers considered more output cuts to support prices.

Brent crude lost 17 cents to trade at $51.73 a barrel by 1:28 p.m. EST (1628 GMT). U.S. crude traded 1 cent lower at $46.74 a barrel.