Market Roundup
- EUR/USD -0.08%, USD/JPY 0.01%, GBP/USD -0.38%, EUR/GBP 0.29%
- DXY 0.15%, DAX 0.07%, FTSE 0.51%, Brent 0.39%, Gold 0.07%
- British PM May calls in ministers to find way out of Brexit maelstrom
- EU's Dombrovskis warns of financial disruption from no-deal Brexit
- Great Britain Mar Markit/CIPS Cons PMI, 49.7, 49.8 f'cast, 49.5 prev
- EZ Feb Producer Prices MM, 0.1%, 0.1% f'cast, 0.4% prev
- EZ Feb Producer Prices YY, 3.0%, 3.1% f'cast, 3.0% prev
- WTO says global trade slowed in fourth quarter, cuts forecasts
Economic Data Ahead
- (0830 ET/1230 GMT) The U.S. durable goods orders are expected to have decreased 1.8 percent in February, after rising 0.3 percent in January, while non-defense capital goods orders excluding aircraft are likely to stay flat after gaining 0.8 percent the prior month.
- (0945 ET/1345 GMT) The NAPM-New York releases ISM-New York Index for the month of March. The index stood at 61.1 in the previous month.
- (1530 ET/1930 GMT) Autodata Corp is expected to report that U.S. auto sales figures rose to an annualized rate of 16.80 million units in March from 16.57 million units in February.
- (1730 ET/2130 GMT) API reports its weekly crude oil stock.
Key Events Ahead
- (1530 ET/1930 GMT) Canada's farm and trade ministers will testify to the House of Commons trade committee about China's ban on imports of canola seed.
- (1730 ET/2130 GMT) Dallas Federal Reserve Bank President Robert Kaplan to give his latest views in Toronto on the economic outlook and appropriate monetary policy
FX Beat
DXY: The dollar index advanced to multi-week peak as ebbing concerns about weakness in the global economy boosted U.S. Treasury yields from 15-month lows. The greenback against a basket of currencies traded 0.5 percent up at 97.39, having touched a peak of 97.46, its highest since Mar. 8. FxWirePro's Hourly Dollar Strength Index stood at 43.31 (Neutral) by 1000 GMT.
EUR/USD: The euro slumped to a 3-1/2 week trough after data released on Monday showed factories in the eurozone had their worst month for almost six years in March, reinforcing concerns that the economy faced a slowdown. The European currency traded 0.1 percent down at 1.1203, having touched a low of 1.1190, its lowest since Mar. 8. FxWirePro's Hourly Euro Strength Index stood at 38.05 (Neutral) by 1000 GMT. Immediate resistance is located at 1.1246 (Mar. 29 High), a break above targets 1.1285 (Mar. 28 High). On the downside, support is seen at 1.1176 (Mar. 7 Low), a break below could drag it till 1.1155.
USD/JPY: The dollar surged to a near 2-week peak as investors risk sentiment improved following relatively strong data out of the United States. Moreover, a survey showing factory activity in China unexpectedly grew for the first time in four months in March supported the bid tone around the pair. The major was trading 0.05 percent up at 111.35, having hit a high of 111.45 earlier, its highest since Mar. 20. FxWirePro's Hourly Yen Strength Index stood at -109.11 (Slightly Bearish) by 1000 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. durable goods and total vehicle sales. Immediate resistance is located at 111.62 (Mar. 18 High), a break above targets 111.92 (Mar. 6 High). On the downside, support is seen at 111.06 (Mar. 13 Low), a break below could take it lower at 110.74 (Mar. 8 Low).
GBP/USD: Sterling plunged, reversing most of its previous session gains, as Brexit uncertainty clouded investor sentiment with Britain's parliament deadlocked over its exit from the European Union. Lawmakers' failure to agree on an alternative plan to British Prime Minister Theresa May's withdrawal agreement has put her under pressure to resolve the Brexit crisis by either calling an election or leaving the European Union without a deal. The major traded 0.3 percent down at 1.3057, having hit a low of 1.2976 on Thursday; it’s lowest since Mar. 11. FxWirePro's Hourly Sterling Strength Index stood at -46.75 (Neutral) 1000 GMT. Immediate resistance is located at 1.3160 (Jan. 31 High), a break above could take it near 1.3198 (Mar. 5 High). On the downside, support is seen at 1.2976 (Mar. 29 Low), a break below targets 1.2924 (Feb. 5 Low). Against the euro, the pound was trading 0.2 percent down at 85.78 pence, having hit a high of 84.83 last week, it’s highest since Mar. 13.
USD/CHF: The Swiss franc fell to a near 2-week low as the greenback surged following a rebound in the U.S. Treasury yields. The major trades 0.1 percent up at 0.9998, having touched a high of 1.0000; it’s highest since Mar. 20. FxWirePro's Hourly Swiss Franc Strength Index stood at 43.31 (Neutral) by 1000 GMT. On the higher side, near-term resistance is around 1.0024 (Feb. 22 High) and any break above will take the pair to next level till 1.0052 (Mar. 15 High). The near-term support is around 0.9962 (Feb.27 Low), and any close below that level will drag it till 0.9895 (Jan.17 Low).
Equities Recap
European shares gained, as Brent neared $70 a barrel for the first time since November, however, concerns over slowing global growth limited upside.
The pan-European STOXX 600 index rallied 0.05 percent at 383.80 points, while the FTSEurofirst 300 index rose 0.3 percent to 1,512.75 points.
Britain's FTSE 100 trades 0.7 percent up at 7,369.02 points, while mid-cap FTSE 250 gained 0.1 to 19,258.99 points.
Germany's DAX rose 0.1 percent at 11,698.42 points; France's CAC 40 trades 0.1 percent higher at 5,413.19 points.
Commodities Recap
Crude oil prices rallied to their 2019 highs on the prospect that more sanctions against Iran and further Venezuelan disruptions could deepen an OPEC-led supply cut. International benchmark Brent crude was trading 0.2 percent up at $69.30 per barrel by 1027 GMT, having hit a high of $69.47, its highest since Nov. 13. U.S. West Texas Intermediate was trading 0.6 percent higher at $62.12 a barrel, after rising as high as $62.15, its highest since the Nov. 8.
Gold prices declined to their lowest in more than 3-weeks as waning concerns about a global economic slowdown boosted equities to multi-month highs. Spot gold eased 0.05 percent at $1,287.57 per ounce by 1031 GMT, having touched a low of $1,285.17, its lowest since March 8. U.S. gold futures fell about 0.2 percent to $1,291.40 an ounce.
Treasuries Recap
The U.S. Treasuries gained during European session after witnessing biggest sell-off since January on Tuesday. The yield on the benchmark 10-year Treasury yield dipped 2 basis points to 2.478 percent, the super-long 30-year bond yields fell 2 basis points to 2.873 percent and the yield on the short-term 2-year traded 2-1/2 basis points lower at 2.302 percent.
The United Kingdom’s gilts gained during European session on after the country’s March construction activity contracted for the second straight month, which pushed the 10-year yield down over 3 basis points. That was largely due to uncertainty over Brexit which is deterring investment. The yield on the benchmark 10-year gilts, fell over 3 basis points to 1.017 percent, the super-long 30-year bond yields also dipped 3 basis points to 1.561 percent and the yield on the short-term 2-year traded 3 basis point lower at 0.643 percent.
The German bunds traded firmer during European session as investors again seeking safe-haven assets amid fear of global economic slowdown and recession. The German 10-year bond yields, which move inversely to its price, declined 1 basis point to -0.035 percent, the yield on 30-year note fell over 1 basis point to 0.612 percent and the yield on short-term 2-year traded 1/2 basis point lower at -0.603 percent.
The Japanese government bonds closed lower as investors shifted away from risk-haven assets after a 10-year auction attracted solid sales, thus pushing yields higher. The yield on the benchmark 10-year JGB note, which moves inversely to its price, jumped 10 basis points to -0.065 percent, the yield on the long-term 30-year hovered around 0.516 percent and the yield on short-term 2-year surged 13 basis points to -0.157 percent.
The Australian government bonds remained mixed during Asian trading session after the Reserve Bank of Australia (RBA) maintained a steady rate in its monetary policy meeting, held early today, while maintaining a positive outlook on the country’s labour market. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, surged 1 basis point to 1.824 percent, the yield on the long-term 30-year bond traded tad higher at 2.441 percent while the yield on short-term 2-year traded 1 basis point lower at 1.467 percent.
