Market Roundup
• Swiss Feb Unemployment Rate 2.5%,2.6% previous
• Swiss Feb Unemployment Rate 2.3%,2.3% previous
• German Jan Current Account Balance 16.6B, 20.1B forecast, 24.8B previous
• German Jan Industrial Production (MoM) 3.0%, 1.7% forecast, -2.2% previous
• German Jan Trade Balance 18.5B, 15.4B forecast, 19.0B previous
Looking Ahead - Economic Data (GMT)
• 14:00 US Feb CB Employment Trends Index 110.20 previous
• 14:00 French 12-Month BTF Auction -0.642% previous
• 14:00 French 3-Month BTF Auction -0.627% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro rose sharply against dollar on Monday as investors sold off risky assets after a plunge in oil prices exacerbated concerns over economic fallout stemming from the coronavirus epidemic. Meanwhile, 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 capital Milan. The euro was up 1.17 percent at $1.1416. 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 further against a sinking dollar on Monday, as coronavirus fears and a slump in oil prices roiled world markets. Money markets in Britain raised their bets on a Bank of England rate cut later this month to limit the damage. They now price in a rate cut of nearly 50 basis points when the central bank meets on March 26. 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. Immediate resistance can be seen at 1.3200 (Daily high), an upside break can trigger rise towards 1.3279 (55 DMA).On the downside, immediate support is seen at 1.2727 (Daily low), a break below could take the pair towards 1.2700 (Psychological level).
USD/CHF: The dollar declined against the Swiss franc on Monday, as investors fled safe haven assets to hedge the economic shock of the coronavirus, and oil plunged more than 20% after Saudi Arabia slashed its official selling price. The world’s top oil exporter plans to raise its production significantly after the collapse of OPEC’s supply cut agreement with Russia, a grab for market share reminiscent of a drive in 2014 that caused prices to slump around two thirds. At (GMT 12:16), Greenback dipped 0.78% versus the Swiss franc to 0.9296. Immediate resistance can be seen at 0.9644 (5 DMA), an upside break can trigger rise towards 0.9789 (11 DMA).On the downside, immediate support is seen at 0.9177 (Daily low), a break below could take the pair towards 0.9100 (Psychological level).
USD/JPY: The dollar declined against the Japanese yen on Monday, as a 30% crash in oil prices and tumbling stock markets panicked investors and sent currency prices swinging wildly. Investors are dumping dollars because of the collapse in U.S. Treasury yields. The benchmark yield is at 0.45%, after trading above 1% last week, as traders shed risky assets and head for the safety of government bond markets.Oil prices fell 30% after Saudi Arabia pledged to slash prices and boost production following the collapse of an OPEC supply agreement. Strong resistance can be seen at 105.33 (100 DMA), an upside break can trigger rise towards 106.00(Psychological level).On the downside, immediate support is seen at 100.86 (Daily low), a break below could take the pair towards 100.00 (Psychological level).
Equities Recap
European shares slumped on Monday, with the benchmark STOXX 600 in bear market territory, as fears of a global recession were amplified by a 25% plunge in oil prices and a lockdown in northern Italy to contain the coronavirus outbreak.
At (GMT 13:50),UK's benchmark FTSE 100 was last trading down at 7.29 percent, Germany's Dax was down by 7.03 percent, France’s CAC finished was down by 7.13 percent.
Commodities Recap
Oil prices lost as much as a third of their value on Monday in their biggest daily rout since the 1991 Gulf War after Saudi Arabia signalled it would hike output to win market share when the coronavirus has already left the market oversupplied.
Brent crude futures were down 22% at $37.05 a barrel by 1000 GMT, after early dropping by as much as 31% to $31.02, their lowest since Feb. 12, 2016.
U.S. West Texas Intermediate (WTI) crude fell by more than 24%, to $33.20 a barrel, after initially falling 33% to $27.34, also the lowest since Feb. 12, 2016.
Gold prices fell 1% on Monday as investors booked profits after the metal rose above the $1,700 per ounce level for the first time in more than seven years on fears of a deeper economic fallout from the coronavirus outbreak.
Spot gold fell 0.6% to $1,663.35 per ounce by 0553 GMT, having touched its highest since December 2012 at $1,702.56 earlier. U.S. gold futures slipped 0.4% to $1,665.30.
Treasuries Recap
Italy’s government bond yields soared on coronavirus fears in early Monday trade, after the country ordered a virtual lockdown across much of its wealthy northern region.
Italy’s 10-year yield jumped 24 basis points to 1.32%, its highest since late January. That pushed the gap between Italy and Germany’s 10-year yields - a key measure of risk on the latter above 200 bps for the first time since August 2019.
