Market Roundup
- Trump has decided to remove his national security adviser -Washington Post
- U.S. sanctions Russians for meddling, but not Putin's oligarchs
- U.S. Chamber of Commerce warns Trump against China tariffs
- Japan Upper House confirms BoJ Kuroda, Amamiya, Wakatabe appointments
- S.Korea gears up for summit, report shows N.Korea testing reactor
- RBA’s Debelle warns global markets too complacent on rate risks
- Rejecting protectionism, ASEAN and Australia commit to free trade
- Mexican minister ramps up pressure for speedy NAFTA deal
- U.S.-based stock funds attract $20.4 bln in 'Goldilocks' week -Lipper
- Foreign CB US debt holdings +$11,827 bln to $3.452 tln Mar 14 week
- Treasuries $13,425 bln to $3.109 tln, agencies +$1.703 mln to $262.492 bln
Economic Data Ahead
- No major economic data releases
Key Events Ahead
- (0330 ET/0730 GMT) Norges Bank Deputy Governors Jon Nicolaisen and Egil Matsen give speeches to Norges Bank's Regional Network Region North-West
- (0530 ET/0930 GMT) BoE Financial policy committee statement from its meeting on 12 March 2018
FX Beat
DXY: The dollar index eased on reports that U.S. Special Counsel Robert Mueller had issued a subpoena for documents related to U.S. President Donald Trump's businesses. The greenback against a basket of currencies 0.1 percent down at 90.05, having touched a low of 89.56 on Wednesday, its lowest since Mar. 8. FxWirePro's Hourly Dollar Strength Index stood at 60.74 (Bullish) by 0500 GMT.
EUR/USD: The euro steadied after falling to a 4-day low earlier in the session on news that the European Central Bank has stressed that its exit from the easy monetary policy would be very slow. The European currency traded 0.1 percent up at 1.2312, having touched a high of 1.2412 on Wednesday, its highest since Mar. 8. FxWirePro's Hourly Euro Strength Index stood at -13.73 (Neutral) by 0400 GMT. Investors’ attention will remain on the Eurozone consumer price index, ahead of U.S. building permits, housing starts, industrial production and JOLTS job opening report. Immediate resistance is located at 1.2347 (10-DMA), a break above targets 1.2412 (Mar. 14 High). On the downside, support is seen at 1.2273 (Mar. 9 Low), a break below could drag it lower 1.2251 (Mar 2 Low).
USD/JPY: The dollar declined against the Japanese yen following a report by the Washington Post that U.S. President Donald Trump has decided to remove H.R. McMaster as his national security advisor. The major was trading 0.4 percent down at 105.93, having hit a low of 105.78 the day before, its lowest since Mar. 7. FxWirePro's Hourly Yen Strength Index stood at 126.24 (Highly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. building permits, housing starts, industrial production and JOLTS job opening report. Immediate resistance is located at 106.54 (21-DMA), a break above targets 107.04 (Mar 9 High). On the downside, support is seen at 105.78 (Previous Session Low), a break below could take it lower 105.25.
GBP/USD: Sterling eased, extending losses for the third straight session on scepticism about the prospect of a smooth Brexit transition deal. Moreover, traders remained focused on a Bank of England policy meeting next week and a European Union leaders summit for further clues on the British currency. The major traded 0.1 percent down at 1.3928, having hit a high of 1.3995 on Wednesday, it’s highest since Feb. 27. FxWirePro's Hourly Sterling Strength Index stood at 70.69 (Bullish) by 0400 GMT. Investors’ focus will remain on the U.S. fundamental drivers, amid a lack of data from the UK docket. Immediate resistance is located at 1.3988, a break above could take it near 1.4070. On the downside, support is seen at 1.3884 (10-DMA), a break below targets 1.3841 (Mar. 4 Low). Against the euro, the pound was trading 0.1 percent down at 88.36 pence, having hit a high of 88.23 pence on Thursday, it’s highest since Feb 28.
AUD/USD: The Australian dollar slumped to a 10-day low after Deputy Governor of the Reserve Bank of Australia Guy Debelle highlighted that investors were underpricing the risk of higher interest rates globally and the need to seek adequate compensation for that risk. The Aussie trades 0.1 percent down at 0.7793, having hit a low of 0.7770 earlier; it’s lowest since Mar. 6. FxWirePro's Hourly Aussie Strength Index stood at 6.43 (Neutral) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7756 (Mar. 6 Low), a break below targets 0.7712 (Mar 1 Low). On the upside, resistance is located at 0.7833 (21-DMA), a break above could take it near 0.7901 (Feb. 21 High).
NZD/USD: The New Zealand dollar tumbled to an over 1-week low on speculation that Reserve Bank of New Zealand is certain to hold rates at 1.75 percent at a meeting next week and reiterate that policy will stay easy as it works to boost tepid inflation. The Kiwi trades 0.4 percent down at 0.7244, having touched a low of 0.7241 earlier, its lowest level since Mar. 6. FxWirePro's Hourly Kiwi Strength Index was at -71.06 (Bearish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.7298 (21-DMA), a break above could take it near 0.7354 (Mar 14 High). On the downside, support is seen at 0.7231 (5-DMA), a break below could drag it below 0.7201.
Equities Recap
Asian shares tumbled, while the greenback declined on news that President Donald Trump has decided to remove H.R. McMaster as his national security advisor.
MSCI's broadest index of Asia-Pacific shares outside Japan declined 0.2 percent.
Tokyo's Nikkei eased 0.6 percent to 21,682.96 points, Australia's S&P/ASX 200 index rallied 0.5 percent to 5,949.40 points and South Korea's KOSPI plunged 0.2 percent to 2,486.41 points.
Shanghai composite index rose 0.1 percent to 3,293.31 points, while CSI300 index was trading 0.1 percent down at 4,093.40 points.
Hong Kong’s Hang Seng was trading 0.05 percent lower at 31,544.80 points. Taiwan shares added 0.1 percent to 11,027.70 points.
Commodities Recap
Crude oil prices rose, extending gains for the third straight session, despite concerns among investors about rising supply from the U.S. and other nations threatening to undermine efforts by OPEC and other producers to tighten the market. International benchmark Brent crude was trading 0.05 percent up at $65.04 per barrel by 0433 GMT, having hit a high of $65.81 on Monday, its highest since Mar. 6. U.S. West Texas Intermediate was trading 0.05 percent up at $61.15 a barrel, after rising as high as $62.31 on Monday, its strongest since Mar. 7.
Gold prices rose after falling to a 1-week low as tensions between the United Kingdom and Russia and renewed U.S. political concerns weighed on market sentiment. Spot gold gained 0.5 percent to $1,316.62 per ounce at 0436 GMT, having hit a high of $1,329.91 an ounce on Wednesday, its highest since Mar. 7. U.S. gold futures for April delivery fell 0.2 percent to $1,315.20 per ounce.
Treasuries Recap
The 10-year U.S Treasury yield stood at 2.820 percent lower by 0.003 bps, while 5-year yield was 0.001 bps down at 2.621 percent.
The Japanese government bonds gained after the country’s industrial production for the month of January, disappointed market participants, coming in lower than anticipations, thus increasing the demand for safe-haven assets. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slipped nearly 1 basis point to 0.03 percent, the yield on the long-term 30-year note remained flat at 0.76 percent and the yield on short-term 2-year traded tad lower at -0.12 percent.
The Australian government bonds rallied on the last trading day of the week, rising more than 6 percent so far this week on growing angst among investors over trade war which would hurt the global economy. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 2-1/2 basis points to 2.702 percent, the yield on the long-term 30-year note dipped 3 basis points to 3.277 percent and the yield on short-term 2-year down 2-1/2 basis points to 1.977 percent.
The Canadian government bond prices were higher across the maturity curve, with the two-year up 3.5 Canadian cents to yield 1.757 percent and the benchmark 10-year rising 15 Canadian cents to yield 2.142 percent.
