Europe Roundup: Sterling gains as traders shun safe-haven dollar, European shares dip, Gold slips, Oil falls as demands fears outweigh stimulus efforts-March 27th,2020

Market Roundup

• French March Consumer Confidence 103, 92 forecast, 104 previous

• Italian March Business Confidence 89.5, 90.0 forecast, 98.8 previous

• Italian March Consumer Confidence 101.0, 100.5 forecast, 110.9 previous

• Irish Feb Retail Sales (MoM) -4.3%,-0.3% previous

• Irish Feb Retail Sales (YoY) -0.3%, 5.7% previous

• Brazilian Feb PPI (MoM) 0.70%,0.32% previous

• US Feb Core PCE Price Index (MoM) 0.2%,0.2% forecast 0.1% previous

• US Feb Core PCE Price Index (YoY) 1.8,1.7% forecast, 1.6% previous    

• US Feb PCE Price index (YoY) 0.1%, 0.1% previous    

• US Feb Personal Income (MoM) 0.6%,    0.4% forecast 0.6% previous

• US Feb Personal Spending (MoM) 0.2%,0.2% forecast, 0.2% previous

• US Feb Real Personal Consumption (MoM) 0.1%,0.1% previous

Looking Ahead - Economic Data (GMT)
    
• 13:30 Brazil Bank lending Feb (MoM) -0.4% previous    

• 14:00 US Michigan March 5-Year Inflation Expectations 2.30% previous

• 14:00 US March Michigan Consumer Expectations 85.3 forecast, 85.3 previous 
   
• 14:00 US March Michigan Consumer Sentiment 90.0 forecast, 95.9 previous
    
• 14:00 US March Michigan Current Conditions 112.5 forecast, 112.5 previous

• 14:00 US March Michigan Inflation Expectations 2.3% forecast 2.3% previous

• 15:00 Canada Jan Budget Balance (YoY)  -10.97B previous

• 15:00 Canada Jan Budget Balance 0.78B previous

• 16:00 US Feb Dallas Fed PCE  2.20% previous

• 17:30 Brazil Federal Tax Revenue 174.99B previous

• 18:00 Brazil CAGED Net Payroll Jobs 70.00K forecast, -307.31K previous  
 
Looking Ahead - Events, Other Releases (GMT)

• No significant events

Fxbeat

EUR/USD: The euro dipped against dollar on Friday after the European Central Bank’s decided not to apply purchase limits for any individual country in its emergency bond-buying scheme. Elsewhere, EU leaders were unable to agree on Thursday on the scale and scope of their economic response to the coronavirus pandemic, giving themselves two more weeks to work out details in a dispute between the ailing south and the fiscally conservative north. Germany and the Netherlands blocked a call from Italy, Spain and France to issue joint debt. Immediate resistance can be seen at 1.1053 (20 DMA), an upside break can trigger rise towards 1.1081 (100 DMA).On the downside, immediate support is seen at 1.0972 (50% fib), a break below could take the pair towards 1.0893 (38.2% fib).

GBP/USD: Sterling rose against dollar on Friday as investors became more confident that the United States government and central bank economic stimulus could alleviate some of the impact of the coronavirus crisis. Waters have calmed since the U.S. government promised $2 trillion in fiscal stimulus and the Federal Reserve injected more dollars into the financial market by buying U.S. government bonds and swaping dollars for foreign currencies with other major central banks. Sterling was up 0.4% at $1.2253, having touched a near-two-week high of $1.2304. It gained more against the euro, rising by 0.8% to 89.80 pence. Immediate resistance can be seen at 1.2307 (50% fib), an upside break can trigger rise towards 1.2522 (61.8% fib).On the downside, immediate support is seen at 1.2093 (38.2 % fib), a break below could take the pair towards 1.2000 (Psychological level).

USD/CHF: The dollar edged higher against the Swiss franc on Friday as investors wagered policymakers will roll out more stimulus measures to combat the coronavirus pandemic after U.S. unemployment filings surged to a record. The U.S. House of Representatives is expected to pass a $2.2 trillion stimulus package that will flood the world’s largest economy with money to stem the damage caused by the pandemic.The U.S. Federal Reserve has already slashed rates to zero and launched quantitative easing. The Fed will also take the unprecedented step of offering a direct backstop for corporate loans. Immediate resistance can be seen at 0.9691 (50% fib), an upside break can trigger rise towards 0.9973 (61.8%fib).On the downside, immediate support is seen at 0.9585 (23.6%fib), a break below could take the pair towards 0.9500 (Psychological level).

USD/JPY: The dollar declined against the Japanese yen Friday as trillions of dollar’s worth of stimulus efforts by governments and central banks helped temper a rout in global markets triggered by the coronavirus pandemic. The dollar had been riding high in March amid a drive for dollars by investors trying to get their hands on the world’s most liquid currency which is considered a safe haven.But big government spending pledges, including a $2.2 trillion U.S. package, and co-ordinated efforts by central banks around the world to increase the supply of dollars have supported a rally in other major currencies. Strong resistance can be seen at 109.43 (61.8% fib), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.25 (38.2 % fib), a break below could take the pair towards 107.43 (23.6% fib ). 

Equities Recap

European stocks fell on Friday, halting their biggest ever three-day rally in a sign investors were focussing once more on the spread of the coronavirus pandemic despite hopes for further stimulus measures to combat its economic impact.

At (GMT 13:02),UK's benchmark FTSE 100 was last trading down at 5.42 percent, Germany's Dax was down by 3.72  percent, France’s CAC finished was down by 4.42 percent.

Commodities Recap

Gold eased on Friday after five straight days of gains, but was still set for its largest weekly rise since December 2008 on safe haven demand as the coronavirus led to a surge in U.S. jobless claims and wreaked havoc on the global economy.

Spot gold fell 0.5% to $1,620.36 per ounce by 1104 GMT. U.S. gold futures slipped 1.6% to $1,624.40 per ounce.

Treasuries Recap

German bond yields fell to 10-day lows on Friday after the European Central Bank’s decision not to apply purchase limits for any individual country in its emergency bond-buying scheme.

Ten-year Italian bond yields were up 8 basis points to 1.32% after Thursday’s rally. Data on Thursday showed that the number of both new cases and deaths from coronavirus had risen in the country, dashing hopes for a retreat.