Market Roundup
- China makes unprecedented proposals on tech, trade talks progress-U.S. officials
- China's premier pledges more financial sector opening to foreign investors
- May's offer to quit fails to break Britain's Brexit stalemate
- Fed's George says wait-and-see approach needed for policy
- Australia job vacancies rise 1.4 pct to fresh record in Feb qtr
- New Zealand Mar NBNZ Business Outlook, -38.0, -30.9 prev
- New Zealand Mar NBNZ Own Activity, 6.3, 10.5 prev
Economic Data Ahead
- (0500 ET/0900 GMT) EZ Feb Money-M3 Annual Growth, 3.9% f'cast, 3.8% prev
- (0600 ET/1000 GMT) EZ Mar Business Climate, 0.66 f'cast, 0.69 prev
- (0600 ET/1000 GMT) EZ Mar Economic Sentiment, 105.9 f'cast, 106.1 prev
- (0600 ET/1000 GMT) EZ Mar Industrial Sentiment, -0.8 f'cast, -0.4 prev
- (0600 ET/1000 GMT) EZ Mar Services Sentiment, 12.0 f'cast, 12.1 prev
- (0600 ET/1000 GMT) EZ Mar Consumer Confid. Final, -7.2 f'cast, -7.2 prev
- (0900 ET/1300 GMT) Germany Mar CPI Prelim YY, 1.6% f'cast, 1.5% prev
- (0900 ET/1300 GMT) Germany Mar HICP Prelim YY, 1.6% f'cast, 1.7% prev
Key Events Ahead
- N/A IMF chief Christine Lagarde, Federal Reserve Vice Chair Richard H. Clarida and Banque de France Governor François Villeroy de Galhau speak at a conference in Paris.
- (0410 ET/0810 GMT) ECB Vice President Luis de Guindos speaks at the joint conference of the ECB and the Journal of Money, Credit and Banking in Frankfurt
- (0600 ET/1000 GMT) ECB Governing Council member and OeNB governor Ewald Nowotny address a news conference in Vienna
- (0715 ET/1115 GMT) Federal Reserve Vice Chair Randal Quarles speaks at the Joint Conference of the ECB and the Journal of Money, Credit and Banking in Frankfurt
- (0800 ET/1200 GMT) ECB policymaker and Bank of France Governor Francois Villeroy speaks at a conference at the French central bank in Paris
- (0930 ET/1330 GMT) Federal Reserve Vice Chair Richard Clarida participates in a panel discussion at the Banque de France and European Money and Finance Forum Colloquium in Paris
- (1000 ET/1400 GMT) Federal Reserve Governor Michelle Bowman speaks in a telephone town hall in Deming, New Mexico
- (1130 ET/1530 GMT) Federal Reserve Bank of Atlanta President Raphael Bostic participates in a panel in Atlanta
- (1315 ET/1715 GMT) Federal Reserve Bank of New York President John Williams participates in moderated discussion on the economy and answers questions in San Juan, Puerto Rico
- (1515 ET/1915 GMT) Reserve Bank of New Zealand Governor Adrian Orr speaks on the future of New Zealand's monetary policy framework in Wellington
- (1800 ET/2200 GMT) Federal Reserve Bank of St. Louis President James Bullard speaks on the U.S. economy and monetary policy in Madison, Wisconsin
FX Beat
DXY: The dollar index declined after rising to a 2-week peak, as the U.S. Treasury yields plunged. The greenback against a basket of currencies traded 0.1 percent down at 96.84, having touched a peak of 96.98, its highest since Mar. 13. FxWirePro's Hourly Dollar Strength Index stood at 69.54 (Bullish) by 0400 GMT.
EUR/USD: The euro rebounded from a 2-week low recorded in the previous session, as the greenback retreated from recent peaks after the 10-year U.S. Treasury note yield slipped to 2.342 percent, its lowest since December 2017 on worries about a global recession. The European currency traded 0.1 percent up at 1.1254, having touched a low of 1.1242 on Wednesday, its lowest since Mar. 12. FxWirePro's Hourly Euro Strength Index stood at -96.85 (Slightly Bearish) by 0400 GMT. Investors’ attention will remain on the Eurozone economic sentiment indicator, ahead of the U.S. unemployment benefit claims, gross domestic product, personal consumption expenditure, pending home sales and Fed officials' speech. Immediate resistance is located at 1.1285 (Mar. 28 High), a break above targets 1.1359 (Mar. 18 High). On the downside, support is seen at 1.1221 (Mar. 11 Low), a break below could drag it till 1.1176 (Mar. 7 Low).
USD/JPY: The dollar plunged, extending losses for the second straight session after Kansas City Federal Reserve Bank President Esther George stated that the U.S. economy faces notable risks and the central bank can take a wait-and-see approach to monetary policy. The major was trading 0.3 percent down at 110.14, having hit a low of 109.70 on Monday, its lowest since Feb. 8. FxWirePro's Hourly Yen Strength Index stood at 81.39 (Slightly Bullish) by 0400 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. unemployment benefit claims, gross domestic product, personal consumption expenditure, pending home sales and Fed officials' speech. Immediate resistance is located at 110.89 (Mar. 22 High), a break above targets 111.23 (Feb. 25 High). On the downside, support is seen at 109.91 (Mar. 26 Low), a break below could take it lower at 109.55 (Feb. 6 Low).
GBP/USD: Sterling rebounded after falling to a near 1-week low on news that Northern Ireland's DUP party, which props up May's government, said it would not support her Brexit withdrawal deal. The major traded 0.1 percent up at 1.3196, having hit a high of 1.3269 on Wednesday; it’s highest since Mar. 20. FxWirePro's Hourly Sterling Strength Index stood at 46.02 (Neutral) 0400 GMT. Immediate resistance is located at 1.3254 (Mar. 4 High), a break above could take it near 1.3311 (Mar. 19 High). On the downside, support is seen at 1.3123 (Mar. 6 Low), a break below targets 1.3068 (Mar. 7 Low). Against the euro, the pound was trading 0.1 percent down at 85.29 pence, having hit a high of 84.83 Wednesday, it’s highest since Mar. 13.
AUD/USD: The Australian dollar rose, after data showed job vacancies in Australia rose to a fresh all-time peak in the three months ended February, supporting RBA's optimism that continued jobs growth will lift the economy out of a soft spot. The major trades 0.4 percent up at 0.7101, having hit a high of 0.7168 last week, it’s highest since Feb. 27. FxWirePro's Hourly Aussie Strength Index stood at -34.96 (Neutral) by 0400 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7041 (Mar. 14 Low), a break below targets 0.7003 (Mar. 8 Low). On the upside, resistance is located at 0.7149 (Mar. 20 High), a break above could take it near 0.7198 (Feb. 27 High).
NZD/USD: The New Zealand dollar bounced back from a 20-day low after the Reserve Bank of New Zealand explicitly cited all the easing moves by other central banks as a reason for its turnaround since they had put unwanted upward pressure on the local dollar. The Kiwi trades 0.4 percent up at 0.6825, having touched a low of 0.6780 earlier, its lowest level Mar. 8. FxWirePro's Hourly Kiwi Strength Index was at -108.50 (Highly Bearish) by 0400 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6853 (Feb. 22 High), a break above could take it near 0.6944 (Dec. 5 High). On the downside, support is seen at 0.6768 (Mar. 5 Low), a break below could drag it below 0.6744 (Mar. 7 Low).
Equities Recap
Asian shares slumped as global recession concerns sent investors seeking safety in safe-haven assets.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.3 percent.
Tokyo's Nikkei plunged 1.6 percent to 21,033.76 points, Australia's S&P/ASX 200 index gained 0.7 percent to 6,176.10 points and South Korea's KOSPI declined 0.8 percent to 2,129.51 points.
Shanghai composite index fell 0.6 percent to 3,004.77 points, while CSI300 index traded 0.1 percent down at 3,738.64 points.
Hong Kong’s Hang Seng traded 0.2 percent higher at 28,783.08 points. Taiwan shares shed 0.05 percent to 10,536.26 points
Commodities Recap
Crude oil prices declined, extending previous session losses after widely watched data showed a surprising increase in U.S. stocks. International benchmark Brent crude was trading 0.2 percent down at $67.67 per barrel by 0442 GMT, having hit a high of $68.33 on Wednesday, its highest since Mar. 21. U.S. West Texas Intermediate was trading 0.3 percent lower at $59.19 a barrel, after rising as high as $60.37 last week, its highest since the Nov. 12.
Gold prices surged as an inversion in the U.S. Treasury yield curve stoked fears of an economic slowdown. Spot gold was 0.2 percent higher at $1,310.73 per ounce, having touched a high of $1,324.40 on Monday, its highest since Feb 28. U.S. gold futures were down 0.1 percent at $1,308.50 an ounce.
Treasuries Recap
The yield on the benchmark 10-year JGB note, which moves inversely to its price, plunged over 2-1/2 basis points to -0.093 percent, the yield on the long-term 30-year traded slumped over 3-1/2 basis points to 0.505 percent and the yield on short-term 2-year suffered 13 basis points to trade at -0.176 percent.
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, fell to a low of 1.722 percent, floating 4-1/2 basis points lower at 1.731 percent, the yield on the long-term 30-year bond also plunged 4-1/2 basis points to 2.380 percent and the yield on short-term 2-year too traded 1/2 basis point lower at 1.458 percent.
The Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year rose 7.5 Canadian cents to yield 1.467 percent and the 10-year was up 33 Canadian cents to yield 1.538 percent. The 10-year yield touched its lowest intraday level since June 2017 at 1.508 percent.
