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  |   Market Roundups


Europe Roundup: Sterling climbs off 1985 lows as markets rebound,European shares bounce, Gold jumps 3%, Oil gains as banks flood market with cheap dollars-March 20th,2020

Market Roundup

• German Feb PPI (YoY)  -0.1%, 0.2% forecast, 0.2% previous

• German Feb PPI (MoM) -0.4%, -0.1% forecast    , 0.8% previous

• Greek Jan Current Account (YoY) -1.291B, -0.540B previous

•EU Current Jan Account 34.7B, 32.6B previous

•EU Jan Current Account n.s.a. 8.7B, 20.5B forecast, 51.2B previous

• UK Inflation Expectations 3.0%,3.1% previous

• UK Feb Public Sector Net Borrowing  -0.39B, 0.85B forecast, -12.43B previous    

• UK March Interest Rate Decision 6.00%,6.00%    forecast, 6.00%    previous

• Canada Jan Core Retail Sales (MoM)  -0.1%,0.2% forecast, 0.7% previous

• Canada Jan Retail Sales (MoM) 0.4%,0.3% forecast, 0.2% previous    

• Russian Jan Real Wage Growth (YoY)  6.5%,4.5% forecast, 6.9% previous

Looking Ahead - Economic Data (GMT)

• 13:30 US Feb Existing Home Sales (MoM)  0.7% forecast, -1.3% previous

• 13:30 US Feb Existing Home Sales  5.50M forecast, 5.46M previous

•18:00 Brazil CAGED Net Payroll Jobs 70.00K forecast, -307.31K previous

Looking Ahead - Events, Other Releases (GMT)

• No economic events    


EUR/USD: The euro declined against dollar on Friday as scramble for hard cash and surge in demand for the greenback prompted investors sell euro. The U.S. Federal Reserve opened the taps for central banks in nine new countries to access dollars in hopes of preventing the outbreak from causing a global economic rout. Several countries rolled out measures to stem the economic damage, with the U.S. Senate unveiling a $1 trillion stimulus plan, while the Bank of England promised 200 billion pounds ($236 billion) of bond purchases and cut its key interest rate. The euro was down 0.02 percent at $1.0704. Immediate resistance can be seen at 1.0729 (23.6% fib), an upside break can trigger rise towards 1.0777 (38.2% fib).On the downside, immediate support is seen at 1.0649(Daily low), a break below could take the pair towards 1.9600 (Psychological level).

GBP/USD: Sterling rebounded versus the U.S. dollar amid a tentative rally in global markets on Friday, climbing off more than three-decade lows against the greenback.The British currency had been one of several to tank as investors rushed to put their money in dollars, the world’s most liquid currency and seen as a safe haven in times of crisis. The Bank of England cut benchmark interest rates to a record low of 0.1% and ramped up its bond-buying programme on Thursday in a new attempt to shield Britain’s economy from the coronavirus pandemic, helping gilts recover. Immediate resistance can be seen at 1.1781(61.8% fib), an upside break can trigger rise towards 1.1875 (Daily high).On the downside, immediate support is seen at 1.1675 (50% fib ), a break below could take the pair towards 1.1589 (38.2% fib)

USD/CHF: The dollar strengthened against the Swiss franc on Friday as central banks and governments pledged masses of cash to reduce the economic impact of the coronavirus pandemic. As the spread of the coronavirus brought much of the world to a halt, nations have poured ever-more massive amounts of stimulus into their economies while central banks have flooded markets with cheap dollars to ease funding strains. At (GMT 13:16), Greenback strengthened 0.1% versus the Swiss franc to 0.9841. Immediate resistance can be seen at 0.9887 (Daily high), an upside break can trigger rise towards 0.9975 (Higher BB).On the downside, immediate support is seen at 0.9741(Daily low), a break below could take the pair towards 0.9690 (5 DMA).

USD/JPY: The dollar gained against the Japanese yen on Friday as extraordinary steps by central banks across the world to stem a coronavirus-induced financial rout saw mixed success, boosting greenback. The dollar’s surge is a nightmare for the many countries and companies that have borrowed heavily in the U.S. currency, leading to yet more selling of emerging market currencies in a negative feedback loop. Strong resistance can be seen at 111.27 (23.6% fib), an upside break can trigger rise towards 112.00 (Psychological level).On the downside, immediate support is seen at 110.59 (38.2% fib), a break below could take the pair towards 110.06 (50% fib). 

Equities Recap

European shares jumped for a second straight session on Friday, as a wave of fiscal and monetary stimulus tempted investors back into equity markets after days of selling on signs the world was headed into a deep, coronavirus-driven recession.    

At (GMT 13:03),UK's benchmark FTSE 100 was last trading up at 1.10 percent, Germany's Dax was up by 3.16 percent, France’s CAC finished was up by 3.56percent.

Treasuries Recap

Euro zone bond yields tumbled on Friday as risk sentiment picked up to support Southern European bonds, while German bonds retraced some of their losses from the previous session.

Italian bond yields were lower, with the 10-year yield last down 17 basis points at 1.65%, after falling nearly 50 bps on Thursday.

Commodities Recap

Gold prices jumped over 3% while platinum surged over 8% on Friday, as precious metals rebounded sharply on a lull in the rush for cash after global action to reduce the economic impact of the coronavirus lifted market sentiment.

Spot gold was up 2.2% at $1,501.83 per ounce at 1217 GMT, having risen as much as 3.1% earlier. It fell 1% on Thursday, and is en route to a 2% weekly decline. U.S. gold futures climbed 1.8% to $1,505.70.

Oil prices rose on Friday as the world’s richest nations poured unprecedented aid into the global economy to stop a coronavirus-driven recession and U.S. President Donald Trump hinted he may intervene in the price war between Saudi Arabia and Russia.

Brent crude futures were up $1.14, or 4%, at $29.61 a barrel by 1133 GMT.U.S. crude futures for April rose $1.34, or 5.3%, to $26.56. The front-month contract expires later on Friday. The more active U.S. crude contract for May was up $1.15, or 4.4%, at $27.06.                                        

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