America’s Roundup: Dollar falls as risk appetite worsens on coronavirus shock, oil price crash, Gold retreats, Oil plunges 25% as Saudi Arabia cuts prices-March 10th,2020

Market Roundup

• Canada Feb Housing Starts  210.1K, 205.0K forecast, 214.0K previous
    
• Canada Jan Building Permits (MoM)  4.0%,2.3% forecast, 9.9% previous    

• US Feb CB Employment Trends Index109.00, 109.80 previous  
 
Looking Ahead - Economic Data (GMT)  
 
• 23:50 Japan M2 Money Stock (YoY) 2.8% previous    

• 23:50 Japan Feb M3 Money Supply  1,833.4T previous 
   
• 00:30 Australia Feb NAB Business Confidence -1 previous

• 00:30 Australia Feb NAB Business Survey 3 previous    

• 01:30  China Feb CPI (MoM) 0.8%,1.4% previous    

• 01:30 China Feb CPI (YoY) 5.2% forecast, 5.4% previous
    
• 01:30  China Feb PPI (YoY) -0.3% forecast, 0.1% previous

• 01:30 Japan Machine Tool Orders (YoY)  -35.6% previous
                                
Looking Ahead - Economic events and other releases (GMT)  
 
• 01:00 New Zealand RBNZ Gov Orr Speaks

Currency Summaries

EUR/USD: The euro rose higher against dollar on Monday as investors sold off risky assets after a plunge in oil prices increased concerns over economic fallout arising from the coronavirus outbreak . The number of coronavirus cases globally surged past 107,000 as the outbreak spread to more countries. Italy took drastic measures and sealed off large parts of the prosperous north of the country, including financial capita Milan. The euro was up 0.11 percent at $1.1450. Immediate resistance can be seen at 1.1498 (Daily high), an upside break can trigger rise towards 1.1573 (Jan 1st 2019 high).On the downside, immediate support is seen at 1.1400 (Psychological level), a break below could take the pair towards 1.1335 (Daily low).

GBP/USD: Sterling gained against dollar on Monday, as weaker dollar and a slump in oil prices roiled world markets. Sterling has been gaining at the expense of the dollar in recent days as investors fled to safe havens, pushing down U.S. Treasury yields after the U.S. Federal Reserve’s emergency rate cut last week. The pound hit a more than one-month high against the dollar and was last up 0.8% at $1.3100, after earlier reaching $1.32. Immediate resistance can be seen at 1.3183 (Higher BB), an upside break can trigger rise towards 1.3200 (Psychological level).On the downside, immediate support is seen at 1.3021 (5 DMA ), a break below could take the pair towards 1.2925 (9 DMA).

USD/CAD: The Canadian dollar tumbled to a near three-year low against its U.S. counterpart on Monday as investors raised bets on further interest rate cuts from the Bank of Canada after the price of oil, one of Canada's major exports, plunged by more than 20%. At (1324 GMT), the Canadian dollar was trading 1.3% lower at 1.3606 to the greenback. The currency touched its weakest intraday level since May 2017 at 1.3760. Immediate resistance can be seen at 1.3708 (Daily high), an upside break can trigger rise towards 1.3765 (March 9th high).On the downside, immediate support is seen at 1.3600(Psychological level), a break below could take the pair towards 1.3519 (5 DMA).

USD/JPY: The dollar declined against the Japanese yen on Monday, as a 30% crash in the oil price and tumbling stock markets drove Investors towards safe haven assets. Oil prices fell 30% after Saudi Arabia pledged to slash prices and boost production following the collapse of an OPEC supply agreement. That unnerved investors already rattled by more than a weak of wild moves in markets, as they struggled to assess the economic damage caused by the coronavirus. Strong resistance can be seen at 103.00 (100 DMA), an upside break can trigger rise towards 104.65(5 DMA).On the downside, immediate support is seen at 102.03(Daily low), a break below could take the pair towards 101.19 (9th March low). 

Equities Recap

European shares ended at an eight-month low on Monday, sinking into bear market territory after a crash in oil prices deepened concerns that a global recession could follow the coronavirus outbreak.

The UK's benchmark FTSE 100 closed down by 7.51 percent, Germany's Dax ended down by 7.89 percent, and France’s CAC finished the down  by 8.39 percent.

Wall Street’s main stock indexes plummeted about 5% on Monday, as a slump in oil prices and the rapid spread of the coronavirus amplified fears of a global recession on the anniversary of the U.S. stock market’s longest bull run.

Dow Jones closed down by 7.79 percent, S&P 500 ended down at 7.60 percent, Nasdaq finished the up by 7.29 percent.

Treasuries Recap

U.S. 10-year Treasury yields slid to fresh record lows on Monday and were set for their biggest one-day fall in more than a decade, as panic over the coronavirus outbreak drove investors into safe-haven bonds.

The U.S. 10-year Treasury yield fell to as low as 0.318% . It was last down almost 30 basis points on the day and set for its biggest daily fall since 2009.

Commodities Recap

Gold retreated from the $1,700 level touched briefly earlier on Monday, as investors sold the bullion to cover margin calls amid plummeting equity and energy markets, overshadowing the metal’s safe-haven demand.

Spot gold was down 0.1% at $1,672.32 per ounce by 1:54 p.m. EDT (1754 GMT), while U.S. gold futures settled up 0.2% at 1,675.70.
Crude prices suffered their biggest daily rout since the 1991 Gulf War on Monday as top producers Saudi Arabia and Russia began a price war that threatens to overwhelm global oil markets with supply.

Brent crude futures   fell $10.91, or 24.1%, to settle at $34.36 a barrel. The contract fell by as much as 31% earlier in the day to $31.02, its lowest since Feb. 12, 2016.

U.S. West Texas Intermediate (WTI) crude  fell $10.15, or 24.6%, to settle at $31.13 a barrel. WTI earlier dropped 33% to $27.34, also the lowest since Feb. 12, 2016