Market Roundup
- EUR/USD -0.14%, USD/JPY 0.20%, GBP/USD -0.09%, EUR/GBP -0.07%
- DXY 0.21%, DAX -1.55%, FTSE -0.69%, Brent -0.03%, Gold -0.49%
- The dollar hit a four-month high after U.S. benchmark Treasury yields rose above 3%
- France to consider curbs on credit growth in June - central bank chief
- French central bank urges liquidity stress tests for funds
- French jobless total falls during the first quarter
- France Apr Consumer Confidence, 101, 100 forecast, 100 previous
- German government cuts 2018 growth forecast to 2.3 percent
- China unveils fresh measures to boost rental housing, pave way for REITs
Economic Data Ahead
- (1100 ET/1600 GMT) The Energy Information Administration (EIA) reports its Crude Oil Stocks for the week ending April 20.
Key Events Ahead
- (1615 ET/2015 GMT) Bank of Canada's Stephen Poloz, Carolyn Wilkins will participate in Senate Standing Committee on Banking, Trade, and Commerce on Finance - Ottawa
FX Beat
DXY: The dollar index rallied to multi-month peaks as the 10-year U.S. Treasury yields rose above 3.00 percent, its strongest level since January 2014. The greenback against a basket of currencies trades 0.3 percent up at 91.04, having touched a high of 91.12 earlier, its highest since Jan. 12. FxWirePro's Hourly Dollar Strength Index stood at 80.67 (Slightly Bullish) by 1000 GMT.
EUR/USD: The euro slumped, reversing most of its previous session gains after the German government lowered its forecast for 2018 growth to 2.3 percent from 2.4 percent previously, as foreign trade was unlikely to make a substantial contribution to growth. The European currency traded 0.2 percent down at 1.2207, having touched a low of 1.2181 the day before, its lowest since Mar. 1. FxWirePro's Hourly Euro Strength Index stood at 25.74 (Neutral) by 1000 GMT. Immediate resistance is located at 1.2260, a break above targets 1.2290 (Apr. 6 High). On the downside, support is seen at 1.2154 (Mar. 1 Low), a break below could drag it lower 1.2100.
USD/JPY: The dollar surged to a 2-1/2 month peak following a rise in benchmark U.S. Treasury yields above 3 percent. Moreover, receding U.S.-China trade conflict concerns allowed the investors to turn its attention back to dollar-supportive fundamentals. The major was trading 0.3 percent up at 109.13, having hit a high of 109.26 earlier, its highest since Feb. 9. FxWirePro's Hourly Yen Strength Index stood at -78.34 (Slightly Bearish) by 1000 GMT. Investors’ will continue to track broad-based market sentiment, amid a lack of economic data from the U.S. docket. Immediate resistance is located at 109.31 (Feb. 9 High), a break above targets 109.78 (Feb. 8 High). On the downside, support is seen at 107.94 (5-DMA), a break below could take it lower 107.52 (10- DMA).
GBP/USD: Sterling declined as investors remained cautious ahead of British GDP figures due on Friday. Moreover, investors slashed expectations of a rate hike at the May meeting, after Governor Mark Carney last week stated that Britain's economic data was mixed and that there were several other MPC meetings later this year. Sterling traded 0.2 percent down at 1.3954, having hit a low of 1.3918 on Tuesday, it’s lowest since Mar. 19. FxWirePro's Hourly Sterling Strength Index stood at 63.50 (Bearish) by 1000 GMT. Immediate resistance is located at 1.4031 (Apr. 23 High), a break above could take it near 1.4110 (21-DMA). On the downside, support is seen at 1.3910, a break below targets 1.3874 (Mar. 13 Low). Against the euro, the pound was trading 0.05 percent up at 87.44 pence, having hit a low of 87.91 pence on Friday, it’s lowest since Mar. 27.
USD/CHF: The Swiss franc eased to a fresh 4-1/2 month low as the U.S. currency strengthened on the back of rising Treasury yields. The major trades 0.4 percent up at 0.9826, having touched a high of 0.9828 earlier, it’s highest since Jan. 10. FxWirePro's Hourly Swiss Franc Strength Index stood at -59.67 (Bearish) by 1000 GMT. On the higher side, near-term resistance is around 0.9845 (Jan. 10 High) and any break above will take the pair to next level till 0.9915 (Dec. 26 High). The near-term support is around 0.9743 (5-DMA) and any close below that level will drag it till 0.9679 (10-DMA).
Equities Recap
European shares slumped in early trade, while the greenback advanced to a 3-1/2 month peak as the U.S. 10-year bond yield rose above 3 percent.
The pan-European STOXX 600 index traded 0.9 percent lower at 379.48 points, while the FTSEurofirst 300 index plunged 0.9 percent to 1,489.27 points.
Britain's FTSE 100 trades 0.7 percent down at 7,375.53 points, while mid-cap FTSE 250 fell 0.8 percent to 20,032.91 points.
Germany's DAX fell 1.7 percent at 12,343.60 points; France's CAC 40 trades 0.6 percent lower at 5,410.75 points.
Commodities Recap
Crude oil prices steadied after falling from a more than 3-year highs reached the previous session, amid concerns over rising U.S. fuel inventories and production. International benchmark Brent crude was trading 0.2 percent up at $74.01 per barrel by 0930 GMT, having hit a high of $75.44 on Tuesday, its highest since Nov. 2014. U.S. West Texas Intermediate was trading 0.3 percent up at $67.89 a barrel, after rising as high as $69.53 on Thursday, its highest since Nov. 2014.
Gold prices declined, as benchmark U.S. bond yields rose above the 3 percent level, resulting the dollar to its highest in more than three months. Spot gold traded 0.4 percent down at $1,325.20 per ounce, as of 0934 GMT, having hit a low of $1,321.99 an ounce on Monday, its lowest since Apr. 6. U.S. gold futures dropped 0.6 percent to $1,325 per ounce.
Treasuries Recap
The U.S. Treasuries finally breached the 3.00 psychological mark after a span of 4-1/2 years, hovering around that level in the overnight session. The yield on the benchmark 10-year Treasuries rose nearly 3-1/2 basis points to 3.01 percent, the super-long 30-year bond yields jumped 2-1/2 basis points to 3.19 percent and the yield on the short-term 2-year traded nearly 3 basis points higher at 2.50 percent.
The German bunds struggled during European session amid a silent trading day that witnessed data of less economic significance. The German 10-year bond yields, which move inversely to its price, jumped 1-1/2 basis points to 0.64 percent, the yield on 30-year note remained flat at 1.29 percent and the yield on short-term 2-year traded 1/2 basis point higher at -0.53 percent.
The Japanese government bonds traded nearly flat ahead of the Bank of Japan (BoJ) monetary policy decision scheduled for Friday. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, traded flat at 0.055 percent, the yield on the long-term 30-year note remained steady at 0.742 percent and the yield on short-term 2-year hovers around -0.133 percent.
The Australia and New Zealand markets remain closed today on account of ANZAC Day.
