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Europe Roundup: Euro dips against dollar as German manufacturing output sinks in March , European stocks slide, Gold surges ,Oil market slammed again by supply glut and weak demand-April 1st 2020

Market Roundup

• German Feb Retail Sales (MoM)  1.2%,0.1% forecast, 1.0% previous

• German Feb Retail Sales (YoY)  6.4%,1.5% forecast, 2.1% previous

• Spanish March Manufacturing PMI  45.7, 44.0 forecast, 50.4 previous

• Italian March Manufacturing PMI  40.3, 40.5 forecast, 48.7 previous

• German March Manufacturing PMI  45.4, 45.5 forecast, 45.7 previous

• EU March Manufacturing PMI  44.5, 44.7 forecast, 44.8 previous

• UK March Manufacturing PMI  47.8, 47.0 forecast, 51.7 previous

• EU Feb Unemployment Rate  7.3%,7.3% forecast, 7.4%  previous

Looking Ahead - Economic Data (GMT) 

• 13:00 Russia GDP Quarterly (YoY) (Q4) 2.1% forecast, 1.7% previous    

• 13:30  Canada March RBC Manufacturing PMI 53.3 forecast, 51.8 previous        

• 13:45 US March Manufacturing PMI  49.2 forecast, 50.7 previous

• 14:00 US March ISM Manufacturing Employment  43.6  forecast, 46.9 previous

• 14:00 US March ISM Manufacturing New Orders Index  49.8 previous

• 14:00 US March ISM Manufacturing PMI  45.0 forecast, 50.1 previous

• 14:00 US Crude Oil Inventories 3.997M forecast, 1.623M previous

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Fxbeat

EUR/USD: The euro dipped against dollar on Wednesday as downbeat German manufacturing data weighed on euro.  Germany’s export-dependent manufacturing sector saw the steepest decrease in output in almost 11 years in March, a survey showed on Wednesday, as the coronavirus pandemic forced plant closures in Europe’s biggest economy. IHS Markit’s Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about a fifth of the German economy, fell to 45.4, lower than both a flash reading of 45.7 and February’s mark of 48.0. A reading below 50 indicates a contraction in activity.. Immediate resistance can be seen at 1.1049 (21 DMA), an upside break can trigger rise towards 1.1081 (200 DMA).On the downside, immediate support is seen at 1.0918 (5 DMA), a break below could take the pair towards 1.0902 (Ichimoku Cloud Base).

GBP/USD: Sterling slipped on Wednesday, losing ground to a surging dollar amid a wider selloff in global stock markets as data showed factory activity across the world contracting sharply due to the coronavirus pandemic. Manufacturing gauges tumbled across the globe, with Purchasing Managers’ Index (PMI) surveys in Asia, the euro zone and the UK underscoring the widening damage wrought by the pandemic that has infected more than 700,000 people, upended supply chains and led to city lockdowns worldwide. Data showed output from Britain’s manufacturing sector shrank at the fastest pace since the euro zone debt crisis in March as the spread of coronavirus led to a spiralling of delays and hammered business confidence. Immediate resistance can be seen at 1.2466 (Daily high ), an upside break can trigger rise towards 1.2515 (38.2% fib).On the downside, immediate support is seen at 1.2300 (50% fib), a break below could take the pair towards 1.2093(10 DMA).

USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as selling in global shares highlighted growing risks from the pandemic that has shown little sign of abating. The dollar’s status as the world’s reserve currency makes it a natural safe haven, as evidence builds of a massive global economic downturn. The dollar was up 0.6% against a basket of currencies on Wednesday and up nearly 1.5% since Monday. It remains below multi-year peaks reached last month, before the Federal Reserve pumped more dollars into the system. Immediate resistance can be seen at 0.9668(50% fib), an upside break can trigger rise towards 0.9756 (100 DMA).On the downside, immediate support is seen at 0.9594 (5 DMA), a break below could take the pair towards 0.9500 (Psychological level).

USD/JPY: The dollar declined against the Japanese yen Wednesday as the coronavirus threat increased demand for safe haven yen. Traders headed for the Japanese yen as evidence continued to mount that the virus was sending the global economy into a deep recession. Central banks have rolled out fiscal and monetary measures in an effort to limit economic damage from the coronavirus, which has infected more than 851,000 people and forced lockdowns across the globe. Strong resistance can be seen at 108.00 (5 DMA), an upside break can trigger rise towards 109.35 (11 DMA).On the downside, immediate support is seen at 107.29 (Daily low), a break below could take the pair towards 107.00 (Psychological level ).

Equities Recap

European stock index futures fell more than 3% on Wednesday as dismal economic data from Asia underlined the damage to the economy from the coronavirus pandemic and fanned fears of a deep global recession.

At (GMT 13:02),UK's benchmark FTSE 100 was last trading down at 3.14 percent, Germany's Dax was down by 3.75  percent, France’s CAC finished was down by 3.85 percent.

Commodities Recap

Gold jumped more than 1.5% on Wednesday as investors continued to seek safe havens on mounting concern that the near-global lockdown to fight the coronavirus pandemic would spark a deep economic downturn.

Spot gold was up 0.7% at $1,582.54 an ounce by 1241 GMT, rebounding from a 3.1% slump in the previous session. U.S. gold futures gained 0.1% to $1,598.00.

Global crude oil prices slid further on Wednesday, following their biggest-ever quarterly and monthly losses, as a bigger-than-expected rise in U.S. inventories and a widening rift within OPEC heightened oversupply fears.

Brent crude was down by 47 cents, or 1.8%, at $25.88 a barrel. U.S. West Texas Intermediate crude was up 12 cents, or 0.6%, at $20.6 a barrel, an uptick analysts said was driven by position building at the start of a the new quarter.

Treasury Recap

Euro zone bond yields fell on Wednesday, with investors rushing into safe-haven government debt as the continuing spread of the novel coronavirus fed risk-off sentiment.

Germany’s Bund yield was down 4 basis points at -0.497% . Portugal’s 10-year government bond yield was last up 1.2 basis point to 0.847%, having reached earlier a six-day high of 0.871.  

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