Market Roundup
- Trump will meet with Chinese vice premier on Thursday -White House
- Brexit delay law approved by UK's House of Commons
- Labour's Corbyn says Theresa May has not moved enough on Brexit
- Japan policymakers shun 'Modern Monetary Theory' as dangerous
Economic Data Ahead
- No major economic data releases
Key Events Ahead
- (0730 ET/1130 GMT) ECB publishes its account of the latest monetary policy meeting of the Governing Council, held on March 6-7
- (0900 ET/1300 GMT) Federal Reserve Bank of New York releases text of the welcome remarks of President John Williams delivered before the Community Bankers Conference
- (1300 ET/1700 GMT) Fed's Harker speaks before the Monetary Policy Outlook hosted by the Philadelphia Council for Business Economics, Philadelphia
- (1300 ET/1700 GMT) Fed's Mester speaks before an Ohio Bankers Day event hosted by the Ohio Department of Commerce
FX Beat
DXY: The dollar index plunged as weaker than expected U.S. economic data published yesterday stoked worries about a sharp slowdown in economic growth in the first quarter. The greenback against a basket of currencies traded 0.05 percent down at 97.07, having touched a peak of 97.52 on Tuesday, its highest since Mar. 8. FxWirePro's Hourly Dollar Strength Index stood at 28.70 (Neutral) by 0500 GMT.
EUR/USD: The euro rose, extending previous session gains, as the greenback eased after data showed U.S. services sector activity hit a more than 19-month low in March. The European currency traded 0.1 percent up at 1.1240, having touched a low of 1.1183 on Tuesday, its lowest since Mar. 7. FxWirePro's Hourly Euro Strength Index stood at 57.31 (Bullish) by 0500 GMT. Investors’ attention will remain on ECB monetary policy meeting accounts, ahead of the U.S. unemployment benefit claims and Fed official's speech. Immediate resistance is located at 1.1285 (Mar. 28 High), a break above targets 1.1331 (Mar. 25 High). On the downside, support is seen at 1.1176 (Mar. 7 Low)., a break below could drag it till 1.1155.
USD/JPY: The dollar declined from a 2-week peak hit in the prior session, after data showed U.S. services sector activity slumped to a more than 19-month low in March and private payrolls grew less than expected, highlighting a loss of momentum in the economy that supports the Federal Reserve's move to delay interest rate hikes this year. The major was trading 0.1 percent down at 111.41, having hit a high of 111.57 the day before, its highest since Mar. 20. FxWirePro's Hourly Yen Strength Index stood at -61.99 (Bearish) by 0500 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. unemployment benefit claims and Fed official's speech. Immediate resistance is located at 111.69 (Mar. 20 High), a break above targets 111.92 (Mar. 6 High). On the downside, support is seen at 111.06 (Mar. 13 Low), a break below could take it lower at 110.74 (Mar. 8 Low).
GBP/USD: Sterling rallied, extending gains for the fourth straight session, as Prime Minister Theresa May sought a Brexit compromise with opposition leader Jeremy Corbyn to end a national crisis. The major traded 0.2 percent up at 1.3171, having hit a high of 1.3196 on Wednesday; it’s highest since Mar. 28. FxWirePro's Hourly Sterling Strength Index stood at 107.55 (Highly Bullish) 0500 GMT. Investors’ attention will remain on the U.S. fundamental drivers, amid a lack of data from the U.S. docket. Immediate resistance is located at 1.3227 (Mar. 21 High), a break above could take it near 1.3269 (Mar. 27 High). On the downside, support is seen at 1.3080 (Mar. 22 Low), a break below targets 1.3003 (Mar. 21 Low). Against the euro, the pound was trading 0.05 percent down at 85.33 pence, having hit a high of 85.02 on Wednesday, it’s highest since Mar. 27.
AUD/USD: The Australian dollar surged as investors’ awaited progress on the ongoing U.S.-China trade negotiations after reports showed that both sides were nearing a deal. The Aussie trades 0.1 percent up at 0.7116, having hit a low of 0.7052 on Tuesday, it’s lowest since Mar. 14. FxWirePro's Hourly Aussie Strength Index stood at -24.13 (Neutral) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7078 (Mar. 18 Low), a break below targets 0.7041 (Mar. 14 Low). On the upside, resistance is located at 0.7149 (Mar. 20 High), a break above could take it near 0.7198 (Feb. 27 High).
NZD/USD: The New Zealand dollar advanced as a solid survey on the Chinese service sector helped counter global growth fears and boosted risk assets broadly. The Kiwi trades 0.1 percent up at 0.6785, having touched a low of 0.6738 on Tuesday, its lowest level Feb. 13. FxWirePro's Hourly Kiwi Strength Index was at -129.96 (Highly Bearish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6827 (Mar. 5 High), a break above could take it near 0.6874 (Mar. 18 High). On the downside, support is seen at 0.6719 (Feb. 12 Low), a break below could drag it below 0.6691 (Dec. 31 Low).
Equities Recap
Asian shares held gains near an 8-month peak as investors awaited developments on U.S.-China trade talks.
MSCI's broadest index of Asia-Pacific shares outside Japan consolidated.
Tokyo's Nikkei rose 0.05 percent to 21,724.95 points, Australia's S&P/ASX 200 index fell 0.8 percent to 6,232.80 points and South Korea's KOSPI rallied 0.2 percent to 2,206.77 points.
Shanghai composite index surged 1.05 percent to 3,249.79 points, while CSI300 index traded 1.1 percent up at 4,066.66 points.
Hong Kong’s Hang Seng traded 0.4 percent lower at 29,860.81 points. Taiwan shares added 0.1 percent to 10,704.38 points
Commodities Recap
Crude oil prices declined, after rising to 2019 highs in the previous session as a surprise build in U.S. inventories dented investor sentiment. International benchmark Brent crude was trading 0.3 percent down at $69.25 per barrel by 0438 GMT, having hit a high of $69.94 on Monday, its highest since Nov. 12. U.S. West Texas Intermediate was trading 0.2 percent down at $62.34 a barrel, after rising as high as $62.96 on Wednesday, its highest since the Nov. 7.
Gold prices rose, reversing some of the previous session losses, as investors remained cautious amid ongoing U.S.-China trade negotiations. Spot gold rose 0.4 percent to $1,292.56 per ounce by 0509 GMT, having touched a low of $1,285.17 on Tuesday, its lowest since March 8. U.S. gold futures firmed 0.1 percent at $1,296.90 an ounce.
Treasuries Recap
The Japanese government bond prices retreated in line with their global peers, the 5-year JGB yield rose half a basis point to minus 0.170 percent and the 10-year yield added 1 basis point to minus 0.045 percent.
The Australian government bond futures eased, with the three-year bond contract down 4 ticks at 98.595, while the 10-year contract lost 6 ticks to 98.0950.
The New Zealand government bond prices fell back, pushing yields up as much as 11 basis points.
The Canadian government bond prices were lower across a steeper yield curve. The two-year fell 5 Canadian cents to yield 1.588 percent and the 10-year was down 30 Canadian cents to yield 1.702 percent. The Canadian 10-year yield rose 3.5 basis points further above the yield on the 3-month T-bill to reach a spread of 3.7 basis points.
