Europe Roundup: Euro dips after data shows Eurozone economy slowed in fourth quarter, European shares gain,Gold falls 1%,Oil jumps after Russian signal on OPEC talks-March 10th,2020

Market Roundup

• French Non-Farm Payrolls (QoQ) (Q4) 0.4%, 0.2% previous

• French Jan Industrial Production (MoM) 1.2%, 1.8% forecast,-2.5% previous
• EU Employment Change (QoQ) (Q4) 0.3%,0.3% forecast, 0.2% previous

• EU Employment Change (YoY) (Q4) 1.1%,1.0% forecast, 1.1% previous

• EU GDP (YoY) (Q4) 1.0%, 0.9% forecast 1.2% previous

• EU GDP (QoQ) (Q4) 0.1%, 0.1% forecast, 0.3% previous

Looking Ahead - Economic Data (GMT)

• 13:55 US Redbook (YoY) 5.9% previous

• 13:55 US Redbook (MoM) -0.1% previous

Looking Ahead - Economic events and other releases (GMT)

• No significant events

Fxbeat

EUR/USD: The euro dipped against dollar on Tuesday after data showed euro zone economy slowed in fourth-quarter .Euro zone economy grew at a snail’s pace in the fourth quarter, figures on Tuesday confirmed, as investments and consumer and government spending just offset the impact of a sharp rise in imports.EU statistics office Eurostat said that gross domestic product (GDP) in the 19 countries sharing the single currency rose by just 0.1 percent in the Oct-Dec period, in line with forecast. Immediate resistance can be seen at 1.1472 (Higher BB), an upside break can trigger rise towards 1.1500 (Psychological level).On the downside, immediate support is seen at 1.1326 (10 March low), a break below could take the pair towards 1.1299 (5 DMA).

GBP/USD: Sterling dipped against dollar on Tuesday, as expectations grew that the White House would unveil a fiscal stimulus package to limit the economic damage wrought by the coronavirus. President Donald Trump is due to hold a news conference later on Tuesday, after saying on Monday that he was prepared to take “major” steps to bolster the U.S. economy, boosting the dollar. Sterling was down 0.4% against the greenback at $1.3068 on Tuesday, after hitting a more than month-high of $1.32 the previous day. Immediate resistance can be seen at 1.3163 (50 DMA), an upside break can trigger rise towards 1.3200 (Psychological level).On the downside, immediate support is seen at 1.3011 (50 DMA), a break below could take the pair towards 1.2919 (9 DMA).

USD/CHF: The dollar strengthened against the Swiss franc on Tuesday, as investors turned hopeful that policymakers would introduce co-ordinated stimulus to cushion the economic impact of the coronavirus outbreak. The greenback started to grind higher as U.S. stock futures rose after U.S. President Donald Trump said the White House will hold a news conference on Tuesday about economic measures in response to the coronavirus outbreak. U.S. Treasury Secretary Steve Mnuchin also said the White House will meet with bank executives this week in a sign the U.S. government is preparing to roll out more measures to soften the blow from the spread of the flu-like virus. Immediate resistance can be seen at 0.9370 (Daily high), an upside break can trigger rise towards 0.9599 (9 DMA).On the downside, immediate support is seen at 0.9230 (Lower BB), a break below could take the pair towards 0.9200 (Psychological level).

USD/JPY: The dollar declined against the Japanese yen on Tuesday, after Bank of Japan officials indicated they were ready to ramp up stimulus if necessary, before a policy meeting next week. Japan on Tuesday announced a second package of measures worth about $4 billion in spending to cope with the fallout to the economy of the coronavirus outbreak, focusing on support for small and mid-sized firms.The move is likely to affect what the Bank of Japan decides at its March 18-19 policy review. Strong resistance can be seen at 105.15 (5 DMA), an upside break can trigger rise towards 106.58 (9 DMA).On the downside, immediate support is seen at 101.93(Daily low), a break below could take the pair towards 100.00 (Psychological level).

Equities Recap

European shares on Tuesday recouped some of the brutal losses in the previous session, as higher oil prices and expectations of more stimulus measures eased anxiety around the economic hit from the coronavirus outbreak.

At (GMT 12:50),UK's benchmark FTSE 100 was last trading up at 1.87 percent, Germany's Dax was up by 1.97 percent, France’s CAC finished was up by 2.21 percent.

Commodities Recap

Gold fell 1% on Tuesday, retreating from last session’s jump above the key $1,700 level, as hopes for global stimulus measures to cushion the economic impact of the coronavirus outbreak lifted riskier assets and the dollar.

Spot gold declined 1% to $1,663.16 per ounce by 0852 GMT, having touched its highest since December 2012 at $1,702.56 on Monday on concerns over the global spread of the virus. U.S. gold futures fell 0.6% to $1,664.80.

Oil prices jumped by around 8% on Tuesday a day after the biggest rout in nearly 30 years as investors eyed the possibility of economic stimulus and Russia signalled that talks with OPEC remained possible.

Brent crude futures were up $2.84, around 8%, to $37.20 a barrel by 1228 GMT, after hitting a session high of $38.22 a barrel.

West Texas Intermediate (WTI) crude gained $2.53, or around 8%, to $33.66 a barrel, after hitting a high of $34.60.

Treasury Recap

Most euro zone bond yields rose on Tuesday from record lows hit the previous day, as hopes for stimulus to support global growth in the face of the coronavirus outbreak boosted risk sentiment.

German government bond yields were 5 to 7 bass points higher on the day in early trade. The 10-year Bund yield was at -0.79% , up from Monday’s record low around -0.91%.