Market Roundup
- New Zealand central bank flags rate cut as likely next move, kiwi tumbles
- UK's weakened PM May still hoping to push her Brexit deal through
- Brexit turmoil hits UK firms' hiring plans - REC
- Trump Fed nominee Moore says central bank should cut rates -NYT
- China's industrial profits shrink most since late 2011 as economy cools
Economic Data Ahead
- (0345 ET/0745 GMT) France Mar Consumer Confidence, 96 f'cast, 95 prev
- (0345 ET/0745 GMT) France Feb Producer Prices MM, 0.1% prev
- (0500 ET/0900 GMT) Italy Mar Consumer Confidence, 112.0 f'cast, 112.4 prev
- (0700 ET/1100 GMT) Great Britain Mar CBI Distributive Trades, 5 f'cast, 0 prev
Key Events Ahead
- N/A ECB board member Sabine Lautenschlaeger and Austrian central bank chief Ewald Nowotny speak at a conference in Vienna
- (0400 ET/0800 GMT) ECB President Mario Draghi speaks at a conference in Frankfurt, Germany
- (0400 ET/0800 GMT) ECB President Mario Draghi, Vice President Luis De Guindos, Chief Economist Peter Praet, and board member Yves Mersch speak at a conference in Frankfurt
- (0445 ET/0845 GMT) ECB Chief Economist Peter Praet participates in a debate at a conference in Fankfurt, Germany
- (0445 ET/0845 GMT) Norway Central Bank Governor Oystein Olsen speaks in Banco de Mocambique in Maputo
- (0530 ET/0930 GMT) ECB supervisor Pentti Hakkarainen speaks at an event organised by Sveriges Riksbank in Stockholm, Sweden
- (0600 ET/1000 GMT) ECB Executive board member Sabine Lautenschlager participates in a panel discussion in Vienna, Austria
- (0645 ET/1045 GMT) ECB Vice President Luis de Guindos participates in a debate at a conference in Frankfurt, Germany
- (0930 ET/1330 GMT) ECB Executive board member Yves Mersch participates in a debate at a conference in Frankfurt, Germany
- (1200 ET/1600 GMT) Federal Reserve issues annual benchmark revisions to its U.S industrial production and capacity use data from 1972 through March 2019
- (1330 ET/1730 GMT) Governor of Bank of France Francois Villeroy de Galhau speaks in Geneva
- (1900 ET/2300 GMT) Kansas Fed's Esther George speaks on the economic and monetary policy outlook in New York
FX Beat
DXY: The dollar index rallied to a 2-week peak, as the 10-year U.S. Treasuries yield rose as high as 2.432 percent from Monday's 15-month low of 2.377 percent. The greenback against a basket of currencies traded 0.1 percent up at 96.90, having touched a peak of 96.93, its highest since Mar. 13. FxWirePro's Hourly Dollar Strength Index stood at 94.17 (Slightly Bullish) by 0400 GMT.
EUR/USD: The euro plunged to a 2-week low after data released yesterday showed German consumer morale deteriorated unexpectedly heading into April, indicating that household spending could weaken in the second quarter of 2019. The European currency traded 0.1 percent down at 1.1256, having touched a low of 1.1250, its lowest since Mar. 12. FxWirePro's Hourly Euro Strength Index stood at -100.44 (Highly Bearish) by 0400 GMT. Investors’ attention will remain on a series of data from the Eurozone economies and ECB members’ speech, ahead of the U.S. trade balance, and current account figures. Immediate resistance is located at 1.1359 (Mar. 18 High), a break above targets 1.1408 (Mar. 1 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 edged lower against the Japanese yen, as U.S. home building declined more than expected in February as the construction of single-family homes eased to near a 2-year low, while consumer confidence ebbed in March. The major was trading 0.05 percent down at 110.55, having hit a low of 109.70 on Monday, its lowest since Feb. 8. FxWirePro's Hourly Yen Strength Index stood at 28.61 (Neutral) by 0500 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. trade balance, and current account figures. 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 110.29 (Mar. 21 Low), a break below could take it lower at 109.63 (Dec. 31 Low).
GBP/USD: Sterling eased, reversing previous session gains, as British companies scaled back sharply their hiring and investment plans amid the growing turmoil around Britain's exit from the European Union. The major traded 0.2 percent down at 1.3187, having hit a low of 1.3003 on Thursday; it’s lowest since Mar. 11. FxWirePro's Hourly Sterling Strength Index stood at 57.71 (Bullish) 0500 GMT. Investors’ will remain on UK parliamentary vote on Brexit, ahead of the U.S. fundamental drivers. 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 1.3146 (Mar. 20 Low), a break below targets 1.3068 (Mar. 7 Low). Against the euro, the pound was trading 0.1 percent down at 85.36 pence, having hit a low of 87.22 on Thursday, it’s lowest since Feb. 22.
AUD/USD: The Australian dollar plunged, amid increasing speculation the Reserve Bank of Australia will have to ease policy at some point. The RBA holds its April policy meeting next week and is likely to sound dovish in order to stop the Aussie dollar from rising. The major trades 0.4 percent down at 0.7103, having hit a high of 0.7168 on Thursday, it’s highest since Feb. 27. FxWirePro's Hourly Aussie Strength Index stood at -66.69 (Bearish) 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 slumped to a near 4-week low, after the Reserve Bank of New Zealand kept the official cash rate at 1.75 percent, as expected, and stated the more likely direction of the next OCR move is down amid a gloomier global outlook. The Kiwi trades 1.6 percent down at 0.6798, having touched a low of 0.6795 earlier, its lowest level Mar. 8. FxWirePro's Hourly Kiwi Strength Index was at -68.29 (Highly Bullish) by 0400 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6944 (Dec. 5 High), a break above could take it near 0.6969 (Dec. 4 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 declined after China's industrial firms posted their worst slump in profits since late 2011 in the first two months of this year.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1 percent.
Tokyo's Nikkei fell 0.4 percent to 21,340.93 points, Australia's S&P/ASX 200 index gained 0.1 percent to 6,136.00 points and South Korea's KOSPI declined 0.1 percent to 2,146.59 points.
Shanghai composite index rose 0.6 percent to 3,015.38 points, while CSI300 index traded 1.02 percent up at 3,738.92 points.
Hong Kong’s Hang Seng traded 0.6 percent higher at 28,740.41 points. Taiwan shares shed 0.2 percent to 10,542.70 points
Commodities Recap
Crude oil prices surged, extending gains for the third straight session, however, gains were limited amid growing fears over the impact of a global economic slowdown on demand. International benchmark Brent crude was trading 0.2 percent up at $68.11 per barrel by 0418 GMT, having hit a high of $68.67 on Thursday, its highest since Nov. 13. U.S. West Texas Intermediate was trading 0.05 percent higher at $60.05 a barrel, after rising as high as $60.37 on Thursday, its highest since the Nov. 12.
Gold prices rose after falling the most in nearly two weeks in the previous session, as equity markets retreated on worries about a possible U.S. recession, while downbeat data added to concerns about the economy. Spot gold was 0.05 percent up at $1,315.68 per ounce by 0425 GMT, having touched a high of $1,324.40 on Monday, its highest since Feb 28. U.S. gold futures were up about 0.1 percent at $1,316.80 an ounce.
Treasuries Recap
The yield on the benchmark 10-year JGB note hovered around -0.067 percent, the yield on the long-term 30-year traded flat at 0.537 percent and the yield on short-term 2-year remained tad higher at -0.163 percent.
The yield on Australia’s benchmark 10-year note fell to its record low of 1.75 percent on Tuesday, now floating 3-1/2 basis points lower at 1.773 percent, the yield on the long-term 30-year bond also plunged 3 basis points to 2.422 percent and the yield on short-term 2-year too traded 2-1/2 basis points lower at 1.465 percent.
The Canadian government bond prices were lower across the yield curve, with the 2-year down 4.5 Canadian cents to yield 1.506 percent and the 10-year falling 19 Canadian cents to yield 1.571 percent..
