Market Roundup
• US Feb Core Durable Goods Orders (MoM) -0.4% forecast,0.8% previous
• US Feb Durable Goods Orders (MoM) -0.8%,-0.2% previous
• Brazil Feb Current Account (USD) -3.90B, -3.45B forecast, -11.88B previous
• Brazil Feb Foreign direct investment (USD) 6.00B, 6.00B forecast, 5.62B previous
• US Jan House Price Index (MoM) 0.6% previous
• US Jan House Price Index (YoY) 5.2. 5.2% previous
• US House Price Index 284.4,283.0 previous
• US Crude Oil Inventories1.623M, 2.774M forecast , 1.954M previous
• US Gasoline Inventories-1.537M, -0.657M forecast, -6.180M previous
• Brazil CAGED Net Payroll Jobs 70.00K forecast, -307.31K previous
Looking Ahead - Economic Data (GMT)
• 23:50 Japan Corporate Services Price Index (CSPI) (YoY) 2.3% previous
• 23:50 Japan Foreign Bonds Buying -595.1B previous
• 23:50 Japan Foreign Investments in Japanese Stocks -1,242.9B previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro strengthened on Wednesday after policymakers in Europe and the United States approved extraordinary measures to lessen the impact of the coronavirus crisis. U.S. senators and officials in President Donald Trump’s administration agreed on a massive economic stimulus bill to alleviate the economic impact of the coronavirus outbreak. Meanwhile, European Central Bank (ECB) head Christine Lagarde asked euro zone finance ministers on Tuesday to seriously consider a one-off joint debt issue of “coronabonds” to help fight the epidemic. Immediate resistance can be seen at 1.0891 (61.8% fib), an upside break can trigger rise towards 1.0951 (11 DMA).On the downside, immediate support is seen at 1.0850 (50% fib), a break below could take the pair towards 1.0800 (Psychological level).
GBP/USD: Sterling extended its rally on Wednesday as the safe-haven U.S. dollar fell across the board on some signs of stabler risk conditions amid the coronavirus crisis. Investors found some comfort that the severe impact of COVID-19 on Britain’s economy could be somewhat alleviated by financial stimulus from both the Bank of England and government. Investors found some comfort that the severe impact. The pound was last trading at $1.1903, having hit earlier a one-week high of $1.1991. Immediate resistance can be seen at 1.1973 (61.8% fib), an upside break can trigger rise towards 1.2000 (Psychological level).On the downside, immediate support is seen at 1.1831 (50% fib), a break below could take the pair towards 1.1695 (38.2% fib).
USD/CAD: The Canadian dollar climbed to a five-day high on Wednesday as the country's legislators approved a stimulus package to help ease the economic impact of the coronavirus outbreak. Canada's C$27 billion aid package will give people affected by the outbreak C$2,000 a month and delay student loan repayments, among other measures, Prime Minister Justin Trudeau. At (1627 GMT), the Canadian dollar was trading 1% higher at 1.4314 to the greenback. The currency touched its strongest intraday level since last Friday at 1.4298. It was the second best G10 currency after Norway’s crown. Immediate resistance can be seen at 1.4413 (23.6% fib), an upside break can trigger rise towards 1.4477 (26th March high).On the downside, immediate support is seen at 1.4174 (11 DMA), a break below could take the pair towards 1.4101 (50% fib).
USD/JPY: The dollar edged higher against the Japanese yen Wednesday as concerns about a sharp rise in coronavirus infections increased demand for Japanese yen . The world has been reeling from the impact of the virus, which has infected nearly 421,000 people and has forced lockdowns across the globe to combat its spread.Spain reported 738 fatalities from the coronavirus in the past 24 hours, the steepest increase since the epidemic hit the country. Meanwhile in the UK, Prince Charles, the 71-year-old heir to the British throne, has tested positive the virus. Strong resistance can be seen at 111.51 (38.2% fib), an upside break can trigger rise towards 112.40 (23.6% fib).On the downside, immediate support is seen at 110.78 (50 % fib), a break below could take the pair towards 110.07 (61.8 % fib).
Equities Recap
European stocks turned choppy again on Wednesday with bourses across the region wiping off most of their early morning gains as a sharp rise in the coronavirus death toll brought back panic.
The UK's benchmark FTSE 100 closed down by 0.59 percent, Germany's Dax ended down by 0.66 percent, and France’s CAC finished the up by 0.07 percent.
U.S stocks seesawed on Wednesday, digesting the previous session’s huge rebound, with investors torn as optimism about an imminent $2 trillion coronavirus package was offset by concerned about the lasting economic impact from the pandemic.
( GMT 20:17) Dow Jones was last trading up by 2.39 percent, S&P 500 was last trading up at 1.26 percent, Nasdaq was last trading down by 0.45 percent.
Treasuries Recap
U.S. Treasury yields were roughly flat on Wednesday morning as the scope of the Federal Reserve’s effort to stabilize markets by purchasing assets registered with investors and demand for safe-haven assets cooled.
The benchmark 10-year yield was 1.8 basis points lower to 0.800%, the 30-year yield was 2.6 basis points lower to 1.343% and the two-year yield was 3.2 basis points lower to 0.344%.
Commodities Recap
Gold prices slipped on Wednesday, after gaining over the previous three sessions, as rising coronavirus cases and the global economic toll from the disease overshadowed hopes fueled by a $2 trillion U.S. government stimulus package.
Spot gold was down 0.2% at $1,607.57 per ounce at 10:56 a.m. EDT (1456 GMT). Prices surged as much as 5% on Tuesday.
U.S. gold futures slid 1.6% to $1,633.70, having posted their biggest one-day jump since 2009 in the last session.
Oil prices fell on Wednesday despite a massive pending U.S. economic stimulus package as the coronavirus pandemic sharply dented U.S. fuel demand in the latest week, with traders bracing for further declines.
Brent crude was down 17 cents, or 0.6%, to $26.98 a barrel, at 09:10 AM GMT. U.S. crude futures fell 21 cents, or 0.9%, to $23.80 a barrel.
