Market Roundup
- EUR/USD -0.04%, USD/JPY -0.06%, GBP/USD -0/05%, EUR/GBP 0.05%
- DXY 0.06%, DAX 0.09%, FTSE X%, Brent 0.03%, Gold 0.13%
- Germany Feb Industrial Orders MM, -4.2%, 0.3% f'cast -2.6% prev, -2.1% r'vsd
- Germany will gradually overcome economic slowdown this year - Altmaier
- Italy stocks and euro fall, bonds rise after report govt to cut 2019 GDP forecast
- White House's Kudlow says U.S.-China talks making progress, could extend
- Brexit: UK loses 6.6 bln pounds a quarter since referendum, S&P says
- UK might have to hold European Parliament elections - Brexit minister
- Gold gains on softer dollar; focus on U.S.-China talks
- Brent edges further away from $70 level on build in U.S. stocks
Economic Data Ahead
- (0830 ET/1230 GMT) The number of Americans filing for unemployment benefits is likely to have increased by 5,000 to a seasonally adjusted 216,000 for the week ended Mar. 29, while continuing claims for the week ended Mar. 22 is expected to decline to 1.750 million from a previous reading of 1.756 million.
- (1000 ET/1400 GMT) The Richard Ivey School of Business releases Canada's seasonally adjusted Ivey Purchasing Managers Index for the month of March. The index posted a reading of 50.6 in the prior month.
- (1030 ET/1430 GMT) The Energy Information Administration (EIA) reports its Natural Gas Storage for the week ending March 29.
Key Events Ahead
- (0900 ET/1300 GMT) Federal Reserve Bank of New York releases text of the welcome remarks of President John Williams delivered before the Community Bankers Conference
- (1300 ET/1700 GMT) Federal Reserve Bank of Philadelphia President Patrick Harker speaks before the Monetary Policy Outlook hosted by the Philadelphia Council for Business Economics, Philadelphia
- (1300 ET/1700 GMT) Federal Reserve Bank of Cleveland President Loretta Mester speaks before an Ohio Bankers Day event hosted by the Ohio Department of Commerce
FX Beat
DXY: The dollar index rebounded from a 6-day low recorded in the prior session, as investors are keen to see if ongoing talks lead to an earlier-than-anticipated meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping to sign an agreement. The greenback against a basket of currencies traded 0.1 percent up at 97.16, having touched a peak of 97.52 on Tuesday, its highest since Mar. 8. FxWirePro's Hourly Dollar Strength Index stood at -4.92 (Neutral) by 1100 GMT.
EUR/USD: The euro eased after data showed German industrial orders fell at their sharpest rate in more than two years in February, weighed down by a slump in foreign demand. Moreover, a slowdown in the eurozone economy continued to dent the bid tone around the major. The European currency traded 0.1 percent down at 1.1225, having touched a low of 1.1183 on Tuesday, its lowest since Mar. 7. FxWirePro's Hourly Euro Strength Index stood at 57.38 (Bullish) by 1100 GMT. Immediate resistance is located at 1.1285 (Mar. 28 High), a break above targets 1.1331 (Mar. 25 High). On the downside, support is seen at 1.1176 (Mar. 7 Low)., a break below could drag it till 1.1155.
USD/JPY: The dollar declined, retreating from a 2-week peak hit in the prior session, amid fresh concerns about U.S.-China trade talks. The major was trading 0.1 percent down at 111.42, having hit a high of 111.57 the day before, its highest since Mar. 20. FxWirePro's Hourly Yen Strength Index stood at -77.30 (Slightly Bearish) by 1100 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. unemployment benefit claims and Fed official's speech. Immediate resistance is located at 111.69 (Mar. 20 High), a break above targets 111.92 (Mar. 6 High). On the downside, support is seen at 111.06 (Mar. 13 Low), a break below could take it lower at 110.74 (Mar. 8 Low).
GBP/USD: Sterling plunged, halting a 3-day streak of gains after opposition Labour leader Jeremy Corbyn stated that Prime Minister Theresa May had not made enough progress in the first round of crisis talks aimed at breaking the domestic deadlock over Britain's exit from the European Union. The major traded 0.1 percent down at 1.3137, having hit a high of 1.3196 on Wednesday; it’s highest since Mar. 28. FxWirePro's Hourly Sterling Strength Index stood at 53.47 (Bullish) 1100 GMT. Immediate resistance is located at 1.3227 (Mar. 21 High), a break above could take it near 1.3269 (Mar. 27 High). On the downside, support is seen at 1.3080 (Mar. 22 Low), a break below targets 1.3003 (Mar. 21 Low). Against the euro, the pound was trading 0.2 percent down at 85.45 pence, having hit a high of 85.02 on Wednesday, it’s highest since Mar. 27.
USD/CHF: The Swiss franc declined, extending previous session losses, as the greenback rebounded from a near 1-week low. The major trades 0.05 percent up at 0.9985, having touched a high of 1.0000 on Tuesday; it’s highest since Mar. 20. FxWirePro's Hourly Swiss Franc Strength Index stood at -4.92 (Neutral) by 1100 GMT. On the higher side, near-term resistance is around 1.0024 (Feb. 22 High) and any break above will take the pair to next level till 1.0052 (Mar. 15 High). The near-term support is around 0.9937 (Mar. 28 Low), and any close below that level will drag it till 0.9895 (Jan.17 Low).
Equities Recap
European shares tumbled, retreating from an 8-month peak amid fresh concerns about U.S.-China trade talks.
The pan-European STOXX 600 index plunged 0.3 percent at 387.64 points, while the FTSEurofirst 300 index declined 0.2 percent to 1,524.04 points.
Britain's FTSE 100 trades 0.4 percent down at 7,386.72 points, while mid-cap FTSE 250 fell 0.5 to 19,467.88 points.
Germany's DAX rose 0.3 percent at 11,986.63 points; France's CAC 40 trades 0.1 percent lower at 5,462.84 points.
Commodities Recap
Crude oil prices rose as supply tightened, however, rising inventories and production in the United States limited gains. International benchmark Brent crude was trading 0.1 percent up at $69.52 per barrel by 1103 GMT, having hit a high of $69.94 on Wednesday, its highest since Nov. 12. U.S. West Texas Intermediate was trading 0.3 percent up at $62.66 a barrel, after rising as high as $62.96 on Wednesday, its highest since the Nov. 7.
Gold prices rose as investors awaited progress on the U.S.-China trade negotiations. Spot gold surged 0.2 percent to $1,290.86 per ounce by 1112 GMT, having touched a low of $1,285.17 on Tuesday, its lowest since March 8. U.S. gold futures firmed 0.1 percent at $1,296.80 an ounce.
Treasuries Recap
The German benchmark 10-year bond yield slipped to just below zero percent, as domestic industrial orders fell unexpectedly in February. The German 10-year Bund yield was at minus 0.008 percent.
The Japanese government bond prices retreated in line with their global peers, the 5-year JGB yield rose half a basis point to minus 0.170 percent and the 10-year yield added 1 basis point to minus 0.045 percent.
The Australian government bond futures eased, with the three-year bond contract down 4 ticks at 98.595, while the 10-year contract lost 6 ticks to 98.0950. The New Zealand government bond prices fell back, pushing yields up as much as 11 basis points.
