Market Roundup
• 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
• US Michigan March 5-Year Inflation Expectations2.30%, 2.30% previous
• US March Michigan Consumer Expectations 79.7,85.3 forecast, 85.3 previous
• US March Michigan Consumer Sentiment 89.1, 90.0 forecast, 95.9 previous
• US March Michigan Current Conditions 103.7, 112.5 forecast, 112.5 previous
• US March Michigan Inflation Expectations 2.2%,2.3% forecast 2.3% previous
• Canada Jan Budget Balance (YoY) -10.56B, -10.97B previous
• Canada Jan Budget Balance0.42B, 0.78B previous
• Canada BoC Interest Rate Decision 0.25%, 1.25% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro strengthened 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. The weakening in the dollar was seen partly as a sign that central bankers have been successful in easing stress in the money markets. The market volatility is expected to continue as the coronavirus pandemic that triggered closures in economies worldwide remains very much a threat. Immediate resistance can be seen at 1.1162 (38.2% fib), an upside break can trigger rise towards 1.1200 (Psychological level).On the downside, immediate support is seen at 1.1064 (38.2% fib), a break below could take the pair towards 1.0966 (61.8% 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. At (GMT 19:36) Sterling was up 2.22% at $1.2469. Immediate resistance can be seen at 1.2489 (Daily high), an upside break can trigger rise towards 1.2623 (23.6% fib).On the downside, immediate support is seen at 1.2382 (38.2% fib), a break below could take the pair towards 1.2204 (50% fib).
USD/CAD: The Canadian dollar reversed its earlier losses against its U.S. counterpart on Friday after Bank of Canada unexpectedly cut its overnight interest rate by 50 basis points to 0.25%.The central bank also launched what observers called its first-ever quantitative easing program, saying it would buy government and commercial debt. Poloz, who is set to retire in June, said the asset purchase program is aimed at improving the “functionality” of financial markets. He said that negative interest rates are an available tool, but he did not think they were suitable because they could have harmful effects on the financial system. Immediate resistance can be seen at 1.4060 (50% fib), an upside break can trigger rise towards 1.4191(61.8% fib) On the downside, immediate support is seen at 1.3922 (38.2% fib), a break below could take the pair towards 1.3744 (23.6 % fib).
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 107.67 (Daily low), a break below could take the pair towards 107.43 (23.6% fib ).
Equities Recap
Stocks across the globe fell on Friday after a historic three-day run-up, with indexes poised to close the month and quarter with starkly negative performances.
UK's benchmark FTSE 100 closed down by 3.68 percent, Germany's Dax ended down by 4.23 percent, France’s CAC finished the day up by 2.68 percent.
Wall Street’s historic three-day bounce was stalled on Friday as doubts about the fate of the U.S. economy resurfaced with the number of coronavirus cases in the country skyrocketing.
Dow Jones closed down by 4.06 percent, S&P 500 closed down by 3.33 percent, Nasdaq settled down by 3.79 percent.
Treasuries Recap
Treasury yields fell on Friday as investors sought safety in high-quality assets after the number of coronavirus cases in the United States surpassed China.
Benchmark 10-year notes last rose 21/32 in price to yield 0.7424%, from 0.808% late on Thursday. The 30-year bond last rose 1-26/32 in price to yield 1.3291% from 1.395%.
Commodities Recap
Gold fell on Friday on caution ahead of the weekend, but prices were set to post their biggest weekly gain since 2008 as economic damage expected from the coronavirus boosted bullion’s safe-haven appeal.
Spot gold fell 0.5% to $1,620.81 per ounce as of 11:42 a.m. EDT (1542 GMT). U.S. gold futures were 1.7% lower at $1,623.30 per ounce.
Oil prices plunged more than 5% on Friday and were on track for a fifth straight weekly loss as demand destruction caused by the coronavirus outweighed stimulus efforts by policymakers around the world.
Brent crude was down $2.03, or 7.7%, at $24.31 a barrel by 12:03 p.m. EDT (1603 GMT). U.S. crude was down $1.29, or 5.7%, at $21.31.
