Market Roundup
• EU Jan Industrial Production (YoY) -1.9%,-3.1% forecast, -3.6% previous
• EU Jan Industrial Production (MoM) 2.3%,1.4% forecast, -1.8% previous
• Irish Feb CPI (YoY) 1.1%,1.3% previous
• US Continuing Jobless Claims1,722K, 1,723K forecast, 1,733K previous
• US Feb Core PPI (MoM) -0.3%,0.1% forecast, 0.5% previous
• US Initial Jobless Claims 211K, 218K forecast, 215K previous
• US Feb PPI (MoM) -0.6%,-0.1% forecast,, 0.5% previous
Looking Ahead - Economic Data (GMT)
• 13:00 Russia Central Bank Reserves (USD) 570.0B previous
• 14:30 US Natural Gas Storage -59B forecast, -109B previous
Looking Ahead - Economic events and other releases (GMT)
•13:30 ECB Press Conference
Fxbeat
EUR/USD: The euro declined against dollar on Thursday, as markets wait to see how aggressively the European Central Bank will move to combat the coronavirus’ economic shock, following emergency rate cuts in the U.S. and Britain. Investors expect the ECB will cut its main deposit rate by 10 basis points. But it is no certainty since rates are already at a record-low -0.5% and further cuts could hurt bank margins and so squeeze lending. The euro was down 0.34 percent at $1.234. Immediate resistance can be seen at 1.1297 (5 DMA), an upside break can trigger rise towards 1.1406 (Higher BB).On the downside, immediate support is seen at 1.1195 (11 DMA), a break below could take the pair towards 1.1065 (100 DMA).
GBP/USD: Sterling fell against the U.S. dollar on Thursday, weighed down by deepening market turmoil after U.S. President Donald Trump slapped restrictions on travel from Europe. The British currency gave up its hard-earned gains on Wednesday when investors cheered stimulus measures from the Bank of England and the British government, including an interest rate cut and billions of pounds of support for struggling firms. Sterling was last down 0.3% against the dollar at $1.2772. The pound was also down 0.3% versus the euro at 88.26 pence per euro. Immediate resistance can be seen at 1.2730 (23.6% fib), an upside break can trigger rise towards 1.2819 (38.2% fib).On the downside, immediate support is seen at 1.2652 (lower BB), a break below could take the pair towards 1.2600 (Psychological level).
USD/CHF: The dollar dipped against the Swiss franc on Thursday, as safe-haven currencies were in demand after U.S. President Donald Trump banned travel from Europe to stem the coronavirus. The highly infectious disease that virtually shut down most parts of China for much of February is spreading rapidly in Europe and increasingly in the United States. At (GMT 12:16), Greenback dipped 0.78% versus the Swiss franc to 0.9296. Immediate resistance can be seen at 0.9440 (9 DMA), an upside break can trigger rise towards 0.9480 (11 DMA).On the downside, immediate support is seen at 0.9315 (Daily low), a break below could take the pair towards 0.9258 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Monday, as Investors were worried how much of an effect economic policies can have after U.S. President Donald Trump took the dramatic step of banning travel from Europe to reduce the impact of the coronavirus. Trump announced on Wednesday the United States will suspend all travel from Europe, except from the United Kingdom, to the United States for 30 days starting on Friday. Investors were worried trade will be affected by the restrictions. Strong resistance can be seen at 105.61 (9DMA), an upside break can trigger rise towards 106.11 (11 DMA).On the downside, immediate support is seen at 102.90 (Lower BB), a break below could take the pair towards 102.00 (Psychological level).
Equities Recap
European stock index futures plunged to their lowest since mid-2016 on Thursday as investors worried about the economic shock from dramatic travel restrictions imposed by U.S. President Donald Trump in an attempt to contain the coronavirus.
At (GMT 13:16 ),UK's benchmark FTSE 100 was last trading down at 6.97 percent, Germany's Dax was down by 7.36percent, France’s CAC finished was down by 7.88 percent.
Commodities Recap
Gold rose on Thursday on worries about the economic impact of the coronavirus as the United States suspended travel from virus-hit Europe, while palladium fell nearly 6% as the pandemic threatened demand for the autocatalyst metal.
Spot gold rose 0.5% to $1,642.46 per ounce by 0854 GMT. U.S. gold futures were unchanged at $1,642.20.
Oil prices fell on Thursday following surprise travel restrictions imposed by U.S. President Donald Trump in an attempt to halt the spread of coronavirus after the World Health Organization described the outbreak as a pandemic.
Brent crude was down $2.01, or 5.6%, at $33.78 by around 0930 GMT. U.S. crude was down $1.77, or 5.4%, at $31.21.
Treasuries Recap
Government bond yields in much of the euro area fell on Thursday, before a European Central Bank meeting widely expected to deliver new stimulus measures to help buffer the economy from the shock inflicted by the coronavirus outbreak.
Germany’s 10-year Bund yield fell to -0.78%, keeping Monday’s record low in sight. Italian bonds sold off with other risk assets, pushing 10-year bond yields there up around 7 bps to 1.26%.
