Market Roundup
- EUR/USD -0.12%, USD/JPY -0.29%, GBP/USD -0.2%, EUR/GBP 0.03%
- DXY 0.06%, DAX 0.02%, FTSE -0.27%, Brent 1.31%, Gold 0.2%
- Spurned by US, North Korea's Kim holds talks with Putin
- BOJ says super-low rates to last another year, giving first timeframe
- Former Vice President Biden launches White House bid as Democrat frontrunner
- Great Britain Apr CBI Distributive Trades, 13, 0 f'cast, -18 prev
- Spain Q1 Unemployment Rate, 14.70%, 14.38% f'cast, 14.45% prev
- China c.bank says no intent to tighten or relax monetary policy
- U.S. officials say global oil market ready for end to Iran crude exports
Economic Data Ahead
- (0830 ET/1230 GMT) The number of Americans filing applications for unemployment benefits is likely to have increased by 8,000 to a seasonally adjusted 200,000 for the week ended Apr. 19, while continuing claims for the week ended Apr. 12 is expected to rise to 1.699 million from a previous reading of 1.653 million.
- (0830 ET/1230 GMT) The U.S. durable goods orders are expected to have increased 0.8 percent in March after declining 1.6 percent in February, while non-defense capital goods orders excluding aircraft are likely to have risen 0.1 percent after easing 0.1 percent the prior month.
- (1030 ET/1430 GMT) The Energy Information Administration (EIA) reports its Natural Gas Storage for the week ending April 19.
- (1100 ET/1500 GMT) Federal Reserve Bank of Kansas City issues manufacturing activity index for the month of April. The indicator stood at 17 in the previous month.
Key Events Ahead
- (0830 ET/1230 GMT) European Central Bank vice president Luis de Guindos will participate in a roundtable at an event organized by the European American Chamber of Commerce in New York.
FX Beat
DXY: The dollar index rallied to a 23-month high as investors await the release on Friday of U.S. gross domestic product data for the first three months of 2019 for signs of whether the United States remains strong. The greenback against a basket of currencies traded 0.3 percent up at 98.30, having touched a high of 98.31 earlier, its highest since May 2017. FxWirePro's Hourly Dollar Strength Index stood at 60.21 (Bullish) by 1100 GMT.
EUR/USD: The euro plunged to near a 22-month low, weighed down by a surprise drop in German business morale and the spectre of political uncertainty in Spain. The European currency traded 0.2 percent down at 1.1129, having touched a low of 1.1124, its lowest since June 2017. FxWirePro's Hourly Euro Strength Index stood at -95.43 (Slightly Bearish) by 1100 GMT. Immediate resistance is located at 1.1171 (23.6% retracement of 1.1323 and 1.1124), a break above targets 1.1200 (38.2% retracement). On the downside, support is seen at 1.1096 (May. 2017 Low) a break below could drag it till 1.1030.
USD/JPY: The dollar declined, retreating from a 4-month peak hit in the prior session, amid growing concerns over the prospects for global growth. The major was trading 0.3 percent down at 111.86, having hit a high of 112.40 on Wednesday, its highest since Dec. 20. FxWirePro's Hourly Yen Strength Index stood at 150.66 (Highly Bullish) by 1100 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of U.S. unemployment benefit claims, durable goods orders and Kansas Fed Manufacturing Activity report. 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 plunged to an over 2-month low on reports Prime Minister's Theresa May's talks with the opposition Labour Party over Brexit reached an impasse. The major traded 0.2 percent down at 1.2873, having hit a low of 1.2870; it’s lowest since Feb. 15. FxWirePro's Hourly Sterling Strength Index stood at 14.74 (Neutral) 1100 GMT. Immediate resistance is located at 1.2957 (5-DMA), a break above could take it near 1.3008 (10-DMA). On the downside, support is seen at 1.2854 (Feb. 7 Low), a break below targets 1.2818 (Jan. 14 Low). Against the euro, the pound was trading flat at 86.42 pence, having hit a low of 86.81 on Tuesday, it’s lowest since Mar. 22.
USD/CHF: The Swiss franc declined, extending losses for the fourth straight session, as the greenback rallied to a 23-month high against a basket of key rivals. The major trades 0.2 percent up at 1.0221, having touched a high of 1.0230 on Tuesday; it’s highest since Jan. 11 2017. FxWirePro's Hourly Swiss Franc Strength Index stood at -1.22 (Neutral) by 1100 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 1.0169 (5-DMA), and any close below that level will drag it till 1.0112 (10-DMA)
Equities Recap
European shares tumbled, weighed down by losses in energy stocks, while the euro plunged amid lingering concerns over the eurozone economy.
The pan-European STOXX 600 index slumped 0.2 percent at 390.38 points, while the FTSEurofirst 300 index plunged 0.2 percent to 1,533.58 points.
Britain's FTSE 100 trades 0.5 percent down at 7,435.99 points, while mid-cap FTSE 250 fell 0.2 to 19,949.51 points.
Germany's DAX declined 0.1 percent at 12,297.33 points; France's CAC 40 trades 0.3 percent lower at 5,560.19 points.
Commodities Recap
Crude oil prices rallied on the back of tighter U.S. sanctions on Iran and producer cartel OPEC's continued curbs on supply. International benchmark Brent crude was trading 0.9 percent lower at $75.20 per barrel by 1115 GMT, having hit a high of $75.58, its highest since Oct. 31, 2018. U.S. West Texas Intermediate was trading 0.6 percent up at $66.15 a barrel, after rising as high as $66.58 on Tuesday, its highest since the Oct. 31, 2018.
Gold prices surged as a fall in equities and weak economic data from EZ and South Korea raised flags about the pace of global economic growth. Spot gold rose 0.1 percent to $1,276.65 per ounce by 1118 GMT, having touched a low of $1,266.18 on Tuesday, its lowest since Dec. 27. U.S. gold futures were steady at $1,279.60 an ounce.
Treasuries Recap
The U.S. Treasuries steadied during the afternoon session ahead of today’s 7-year auction, scheduled to be held today at 17:00GMT. The yield on the benchmark 10-year Treasury yield hovered around 2.525 percent, the super-long 30-year bond yields remained tad higher at 2.948 percent and the yield on the short-term 2-year edged tad lower to 2.312 percent.
The German bunds remained flat during European trading session amid a muted trading session that witnessed data of little economic significance ahead of European Central Bank (ECB) Vice President De Guindos’ speech, scheduled to be delivered today at 12:30GMT. The German 10-year bond yields, which move inversely to its price, hovered around 0.012 percent, the yield on 30-year note remained tad higher at 0.636 percent and the yield on short-term 2-year traded flat at -0.602 percent.
The Japanese government bonds remained mixed at the time of closing after the Bank of Japan (BoJ) pledged to keep the benchmark interest rate at an ultra-low level at least around the spring of 2020, amid ongoing negative side effects of stimulus. The yield on the benchmark 10-year JGB note, which moves inversely to its price, plunged nearly 3-1/2 basis points to -0.032 percent, the yield on the long-term 30-year surged 1-1/2 basis points to 0.574 percent and the yield on short-term 2-year remained flat at -0.148 percent.
