Market Roundup
- Oil prices drop amid supply glut
- Gold gains as new wave of infections rises
Economic Data Ahead
- (0400 ET/0800 GMT) Italy Industrial Output s.a. (MoM)(Mar)
- (0400 ET/0800 GMT) Italy Industrial Output w.d.a (YoY)(Mar)
Key Events Ahead
- No Significant Events Scheduled
FX Beat
DXY: The dollar index rose, reversing most of its previous session losses, as traders started to look past grim economic numbers as they speculate on future growth. The greenback against a basket of currencies traded 0.6 percent up at 99.74, having touched a low of 99.10 on Friday, its lowest since May 4.
EUR/USD: The euro surged, extending gains for the fourth straight session after an EU document showed Eurozone finance ministers agreed on Friday on the details of cheap loans that the bloc will offer to countries hit by the coronavirus crisis. The European currency traded 0.05 percent up at 1.0840, having touched a low of 1.0766 on Thursday, its lowest since April 24. Investors’ attention will remain on a series of economic data from the Eurozone economies, amid lack of economic data from the U.S. docket. Immediate resistance is located at 1.0867 (21-DMA), a break above targets 1.0896. On the downside, support is seen at 1.0803, a break below could drag it below 1.0782.
USD/JPY: The dollar rallied to a 1-week peak as moves by the United States and other countries to re-open their economies raised hopes for a quicker global recovery from a deep recession triggered by the coronavirus health crisis. The major was trading 0.3 percent up at 106.94, having hit a low of 105.98 on Wednesday, its lowest since Mar. 17. Investors’ will continue to track the broad-based market sentiment, as U.S. economic calendar remains absolutely data empty. Immediate resistance is located at 107.20 (21-DMA), a break above targets 107.40. On the downside, support is seen at 106.35, a break below could take it near at 106.09.
GBP/USD: Sterling gained after British Prime Minister Boris Johnson outlined plans to slowly ease coronavirus lockdown restrictions. On Sunday, Johnson, in a televised address, announced a limited easing of coronavirus restrictions that have shuttered much of the economy for weeks, including encouraging some people to return to work. The major traded 0.2 percent up at 1.2417, having hit a low of 1.2266 on Thursday, it’s lowest since April 21. Immediate resistance is located at 1.2454, a break above could take it near 1.2499. On the downside, support is seen at 1.2359, a break below targets 1.2307. Against the euro, the pound was trading 0.1 percent down at 87.35 pence, having hit a low of 88.14 on Monday, it’s lowest since April 22.
AUD/USD: The Australian dollar jumped to a near 2-week peak as Friday’s talks between the U.S. and Chinese policymakers struck an upbeat tone. The Aussie trades 0.3 percent up at 0.6549, having hit a low of 0.6378 on Thursday, it’s lowest since May 4. Immediate resistance is located at 0.6570, a break above could take it near 0.6612. On the downside, support is seen at 0.6490, a break below targets 0.6453.
Equities Recap
Asian shares surged as investors looked ahead to more countries restarting their economies, despite some reported a pickup in new coronavirus cases.
MSCI's broadest index of Asia-Pacific shares outside Japan advanced 1.1 percent.
Tokyo's Nikkei gained 1.05 percent to 20,390.66 points, Australia's S&P/ASX 200 index rallied 1.3 percent to 5,461.20 points. South Korea's KOSPI declined 0.4 percent to 1,938.38 point.
Shanghai composite index fell 0.2 percent to 2,890.62 points, while CSI 300 index traded 0.2 percent down at 3,954.97 points.
Hong Kong’s Hang Seng traded 1.5 percent higher at 24,583.85 points. Taiwan shares added 1.05 percent to 11,013.26 points.
Commodities Recap
Crude oil prices declined as concern over a persistent glut and economic gloom caused by the coronavirus pandemic combined to cancel out support from supply cuts at some of the world’s top producers. International benchmark Brent crude was trading 1.3 percent lower at $30.53 per barrel by 0545 GMT, having hit a high of $32.20 on Wednesday, its highest since April 14. U.S. West Texas Intermediate was trading 1.8 percent down at $25.62 a barrel, after rising as high as $27.95 on Wednesday, its highest since April 9.
Gold prices rose, holding above the key $1,700 per ounce support level, as a new wave of coronavirus infections in some countries raised expectations of further stimulus measures and lower interest rates. Spot gold gained 0.2 percent to $1,705.68 per ounce by 0547 GMT, having touched a high of $1,723.65 on Friday, its highest since Apr. 27. U.S. gold futures eased 0.1 percent to $1,711.70.
Treasuries Recap
On Friday, the US 2-year yields dropped to as low as 0.105 percent, before rising back to 0.1191 percent. The benchmark 10-year note yields were last 0.653 percent, after falling to 0.607 percent earlier. The yields have held in a tight band between 0.543 percent and 0.785 percent for the past month.
