Europe Roundup: Euro surges above $1.13 as Treasury yield slide dents dollar, Europe tumbles, Gold gains 1%, Oil dives more than 3%-March 6th,2020

Market Roundup

• French Jan Current Account -2.80B, -0.30B previous    

• French Jan French Exports  40.3B, 42.0B previous

• French Jan Imports  46.2B, 45.7B previous

• UK Feb Halifax House Price Index (MoM)  0.3% , 0.2% forecast, 0.4% previous

• UK Halifax House Price Index (YoY) 2.8%,4.1%  previous

• Italian Jan Retail Sales (YoY)  1.4%,0.8% previous 

Looking Ahead - Economic Data (GMT) 
   
• 13:30 US Feb Average Hourly Earnings (YoY) (YoY) 3.0%forecast,3.1% previous

• 13:30 US Feb Average Hourly Earnings (MoM)  0.3%    forecast, 0.2% previous

• 13:30 US Feb Average Weekly Hours 34.3 forecast, 34.3 previous

• 13:30 US Exports 209.60B previous  
 
• 13:30 US Imports 258.50B previous

• 13:30 US Feb  Manufacturing Payrolls -3K forecast,  -12K previous

• 13:30 US Feb  Nonfarm Payrolls 175K    forecast, 225K previous
    
• 13:30 US Feb  Participation Rate 63.4% previous

• 13:30 US Feb Private Nonfarm Payrolls 160K, 206K previous

• 13:30 US Feb U6 Unemployment Rate 6.9% previous

• 13:30 US Jan Trade Balance -46.10B forecast, -48.90B previous

• 13:30 US Feb Unemployment Rate 3.6% forecast, 3.6% previous

• 13:30 Canada  Feb Employment Change  10.0K forecast, 34.5K previous
    
• 13:30  Canada Jan Exports  50.10B forecast, 49.32B previous
                
• 13:30  Canada Jan Trade Balance -0.83B forecast, -0.40B previous    

• 15:00 Canada  Feb Ivey PMI 57.3 previous

Looking Ahead - Economic events and other releases (GMT)

• 14:20 US Chicago Fed President Evans Speaks       

• 14:20  US FOMC Member Mester Speaks

• 16:20  US FOMC Member Bullard Speaks 

• 19:00 US FOMC Member Rosengren
Speaks  

• 19:00 US FOMC Member Williams Speaks      
Fx Beat    

EUR/USD: The euro strengthened against dollar on Friday as sliding U.S. Treasury yields eliminated more of its interest rate advantage over other currencies. Mounting fears over the effects of the coronavirus have driven a drop in expectations for U.S. rates. Markets now bet the Federal Reserve will have to cut rates by 50 basis points for a second time this month. The euro has now reversed all its earlier losses for the year, rising from below $1.08 a few weeks ago to above $1.13. The euro last stood at $1.1340, its strongest since August. Immediate resistance can be seen at 1.1340 (Daily high), an upside break can trigger rise towards 1.1400 (Psychological level).On the downside, immediate support is seen at 1.1199 (5 DMA), a break below could take the pair towards 1.1156 (300 DMA).

GBP/USD: Sterling extended gains against a broadly weaker dollar on Friday, and was also boosted by comments from the European Union’s Brexit chief negotiator that a trade deal between Britain and the bloc was still possible this year Britain and the EU this week concluded their first round of trade talks since Britain left the bloc and are due to reconvene on March 18. Sterling briefly rose to a 10-day high of $1.3015 and was last trading up 0.4% at $1.3004. Immediate resistance can be seen at 1.3026 (Daily high), an upside break can trigger rise towards 1.3080 (Higher BB).On the downside, immediate support is seen at 1.2927 (21 DMA), a break below could take the pair towards 1.2883 (9 DMA).

USD/CHF: The dollar declined against the Swiss franc on Friday as the rapid spread of the coronavirus outside China pushed investors away riskier assets on growing worries about the scale of the economic damage. The market is getting more concerned about the impact to growth globally and what you are seeing is that a slowdown in global growth creates concerns for growth in emerging market economies. At (GMT 12:51), Greenback dipped 0.23% versus the Swiss franc to 0.9579. Immediate resistance can be seen at 0.9497 (5 DMA), an upside break can trigger rise towards 0.9588 (9 DMA).On the downside, immediate support is seen at 0.9344(Daily low  ), a break below could take the pair towards 0.9300 (Psychological level).

USD/JPY: The dollar declined against the Japanese yen on Friday as disruptions to global business from the coronavirus beyond China worsened, increasing demand for Japanese yen. The spread of a new coronavirus has accelerated so much in Europe, Britain and North America that investors who once played down the virus are now re-assessing the risks, which means more volatility in financial markets. The dollar dropped 0.3% against the yen to 105.82 yen. The yen is benefiting both from dollar weakness and its reputation as a safe haven. Strong resistance can be seen at 106.33 (Daily high), an upside break can trigger rise towards 106.89(5 DMA).On the downside, immediate support is seen at 104.96 (Daily low), a break below could take the pair towards 104.41  (Aug 24th 2019 low). 

Equities Recap

European shares resumed their slide on Friday as fears that the global spread of the coronavirus could trigger more curbs hit travel stocks, with the mood darkened by no new orders for planemaker Airbus last month.

At (GMT 13:04 ),UK's benchmark FTSE 100 was last trading lower at 1.72percent, Germany's Dax was down by 1.72 percent, France’s CAC was last down by 1.88 percent.

Commodities Recap

Gold prices rose more than 1% on Friday and were on course for their biggest weekly gain since Oct. 2011 as the global spread of the coronavirus dimmed growth prospects and sent investors scurrying for safe-haven assets.

Spot gold was up 0.7% at $1,681.67 per ounce at 1058 GMT, having risen as high as $1,689.65. Prices are up around 6% so far this week. U.S. gold futures rose 0.9% to $1,682.80.

Oil prices slid more than 3% on Friday after Reuters reported that Russia will not agree to steeper oil output cuts by OPEC and its allies to support prices in the face of a slump in oil demand because of the global coronavirus outbreak.

Brent and WTI crude futures tumbled by nearly $3 a barrel after the report.By 1057 GMT Brent crude was down $1.74, or 3.4%, at $48.25 a barrel. U.S. West Texas Intermediate (WTI) was down $1.56, or 3.4%, at $44.34.

Treasuries Recap

Germany’s benchmark 10-year Bund yield fell to a new six-month low on Friday, taking it closer to record lows hit last year, as the coronavirus outbreak continued to rattle world markets.

German Bund futures rose more than 50 ticks in early European trade, while 10-year bond yields in Germany - the euro zone’s benchmark bond issuer  fell to as low as -0.719% .