Market Roundup
- EUR/USD -0.01%, USD/JPY -0.08%, GBP/USD 0.23%, EUR/GBP -0.28%
- DXY 0.03%, DAX -0.24%, FTSE 0.32%, Brent 0.57%, Gold -0.15%
- Oil hits highest since November as U.S. to tighten Iran sanctions
- Japan's 10-day break to fete new emperor may breathe life into economy
- ECB's Coeure sees no argument for tiered deposit rate: FAZ
- Britons feel a boost in their finances from rising wages-survey
- Italy's fiscal spat with EU might resume after debt exceeds forecasts
- China c. bank likely to pause reserve cuts, but policy easing on track-sources
Economic Data Ahead
- (0830 ET/1230 GMT) Statistics Canada is expected to reports that wholesale trade rose 0.4 percent in February after gaining 0.6 percent from March.
- (0900 ET/1300 GMT) The Federal Housing Finance Agency releases its housing price index for the month of February. The index is expected to edge up to 0.3 percent after rising 0.6 percent in the previous month.
- (1000 ET/1400 GMT) The U.S. new single-family home sales are expected to have declined to a seasonally adjusted annual rate of 650,000 units in March, from 667,000 units in February.
- (1000 ET/1500 GMT) Federal Reserve Bank of Richmond will publish its Manufacturing Index for April. The index posted a rise of 10 in the prior month.
- (1630 ET/2030 GMT) API reports its weekly crude oil stock.
Key Events Ahead
- (1300/1700) Federal Reserve Board holds open meeting to discuss a proposal to simplify and increase the transparency of the Board's rules for determining control of a banking organization in Washington.
FX Beat
DXY: The dollar index surged, halting a 2-day losing streak, as investors expect U.S. growth to be 2.1 percent in the January-March despite rising trade conflicts and a global growth slowdown. The greenback against a basket of currencies traded 0.1 percent up at 97.37, having touched a high of 97.49 on Thursday, its highest since Apr. 2. FxWirePro's Hourly Dollar Strength Index stood at 22.32 (Neutral) by 1000 GMT
EUR/USD: The euro declined after European Central Bank board member Benoit Coeure said he sees no reason for creating a tiered deposit rate that exempts banks from part of an ECB charge on their idle cash. The European currency traded 0.1 percent down at 1.1250, having touched a high of 1.1323 on Wednesday, its highest since Mar. 26. FxWirePro's Hourly Euro Strength Index stood at 0.57 (Neutral) by 1000 GMT. Immediate resistance is located at 1.1287 (Apr. 10 High), a break above targets 1.1331 (Mar. 25 High). On the downside, support is seen at 1.1213 (Mar. 28 Low) a break below could drag it till 1.1176 (Mar. 7 Low).
USD/JPY: The dollar trimmed losses after falling to a 1-1/2 week trough earlier in the session, as a drop in market volatility boosted demand for riskier assets. The major was trading 0.1 percent down at 111.86, having hit a low of 111.65 earlier, its lowest since Apr. 12. FxWirePro's Hourly Yen Strength Index stood at 79.17 (Slightly Bullish) by 1000 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. new home sales, housing price index and Richmond Fed manufacturing index. Immediate resistance is located at 112.60 (Dec. 20 High), a break above targets 113.24 (Dec. 5 High). On the downside, support is seen at 111.20 (Apr. 3 Low), a break below could take it lower at 110.53 (Mar. 20 Low).
GBP/USD: Sterling surged above the 1.3000 handle as Britain's parliament returned from its Easter break and the ruling Conservative party tried to push talks forward with the opposition Labour party over a Brexit agreement. The major traded 0.2 percent up at 1.3008, having hit a low of 1.2974 earlier; it’s lowest since Mar. 11. FxWirePro's Hourly Sterling Strength Index stood at 150.78 (Highly Bullish) 1000 GMT. Immediate resistance is located at 1.3038 (10-DMA), a break above could take it near 1.3074 (Apr. 8 High). On the downside, support is seen at 1.2960 (Mar. 11 Low), a break below targets 1.2924 (Feb. 5 Low). Against the euro, the pound was trading 0.3 percent up at 86.49 pence, having hit a low of 86.80 on Wednesday, it’s lowest since Mar. 22.
USD/CHF: The Swiss franc plunged to an over 2-year low, as the greenback strengthened as the risk sentiment across currency markets improved. The major trades 0.4 percent up at 1.0194, having touched a high of 1.0195; it’s highest since Jan. 11 2017. FxWirePro's Hourly Swiss Franc Strength Index stood at -105.67 (Highly Bearish) by 1000 GMT. On the higher side, near-term resistance is around 1.0248 (Jan. 11 2017 High) and any break above will take the pair to next level till 1.0280 (Dec. 29, 2016, High). The near-term support is around 1.0126 (5-DMA), and any close below that level will drag it till 1.0074 (10-DMA)
Equities Recap
European shares slumped, weighed down by downbeat corporate earnings reports, while sterling gained as the UK parliament returned from its Easter recess.
The pan-European STOXX 600 index fell 0.2 percent at 389.60 points, while the FTSEurofirst 300 index plunged 0.2 percent to 1,531.03 points.
Britain's FTSE 100 trades 0.3 percent up at 7,481.12 points, while mid-cap FTSE 250 gained 0.05 to 19,837.79 points.
Germany's DAX declined 0.2 percent at 12,196.52 points; France's CAC 40 trades 0.3 percent lower at 5,565.32 points.
Commodities Recap
Crude oil prices surged to fresh 2019 highs after Washington announced all Iran sanction waivers would end by May, pressuring importers to stop buying from Tehran. International benchmark Brent crude was trading 0.3 percent higher at $74.31 per barrel by 1024 GMT, having hit a high of $74.68, its highest since Nov. 1, 2018. U.S. West Texas Intermediate was trading 0.5 percent up at $65.94 a barrel, after rising as high as $66.17, its highest since the Oct. 31, 2018.
Gold prices eased as shares of energy companies surged and currencies of several major crude producers rose after the United States tightened sanctions on Iran. Spot gold fell 0.2 percent to $1,272.63 per ounce by 1029 GMT, having touched a low of $1,271.07 on Friday, its lowest since Dec. 27, 2018. U.S. gold futures shed 0.2 percent to $1,275 an ounce.
Treasuries Recap
The U.S. Treasuries edged tad higher during the afternoon session ahead of today’s short-term 2-year auction, scheduled to be held at 17:00GMT and 5-year auction, due tomorrow at the same time. The yield on the benchmark 10-year Treasury yield slipped 1/2 basis point to 2.585 percent, the super-long 30-year bond yields remained tad lower at 2.990 percent and the yield on the short-term 2-year traded flat at 2.391 percent.
The United Kingdom’s suffered after returning from a long holiday owing to Good Friday and Easter Monday amid an otherwise, muted trading session that witnessed data of little economic significance. The yield on the benchmark 10-year gilts, jumped nearly 3 basis points to 1.225 percent, the super-long 30-year bond yields also urged nearly 2-1/2 basis points to 1.734 percent and the yield on the short-term 2-year too traded nearly 2-1/2 basis points higher at 0.792 percent.
The German bunds slumped during European trading session ahead of the country’s Ifo business climate index and 10-year auction, both scheduled to be released on April 24 by 08:00GMT and 09:40GMT respectively. The German 10-year bond yields, which move inversely to its price, jumped 2-1/2 basis points to 0.048 percent, the yield on 30-year note also surged 2-1/2 basis points to 0.704 percent and the yield on short-term 2-year traded nearly flat at -0.591 percent.
The Japanese government bonds closed nearly flat amid a silent trading session that witnessed data of little economic significance ahead of the Bank of Japan’s (BoJ) monetary policy meeting, scheduled to be held on April 25, which shall provide detailed direction to the debt market. The yield on the benchmark 10-year JGB note, which moves inversely to its price, hovered around -0.029 percent, the yield on the long-term 30-year slipped 1/2 basis point to 0.575 percent and the yield on short-term 2-year remained flat at -0.149 percent.
The Australian government bonds gained during Asian session as investors moved towards safe-haven buying on expectations of weaker Q1 inflation data. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, dipped 4-1/2 basis points to 1.895 percent (lowest since April 12), the yield on the long-term 30-year bond fell nearly 5 basis points to 2.514 percent and the yield on short-term 2-year traded 3-1/2 basis points lower at 1.475 percent.
