America’s Roundup: Dollar dips as coronavirus damage spurs interest rate cut bets,Wall Street ends higher, Gold recovers, Oil rises up over 4%-March 3rd 2020

Market Roundup

•  Markets fully price in Fed rate cut this month

•  U.S. ISM data slows in February

•  Canada Feb RBC Manufacturing PMI  51.8, 50.6 previous

• US Feb Manufacturing PMI  50.7, 50.8 forecast, 51.9 previous

• US Jan  Construction Spending (MoM)  1.8%,0.6% forecast, 0.2% previous

• US Feb ISM Manufacturing Employment  46.9, 46.6 forecast, 46.6 previous

• US Feb ISM Manufacturing PMI  50.1, 50.5 forecast, 50.9 previous

• US Feb ISM Manufacturing Prices  45.9, 51.0 forecast, 53.3 previous

• US Feb Trade Balance  3.10B, 1.50B forecast, -1.75B previous  
 
Looking Ahead - Economic Data (GMT)    

• 21:45 New Zealand Terms of Trade - Exports Prices (Q4)    1.0%,1.9% previous

• 21:45 New Zealand Terms of Trade - Exports Volume (QoQ) (Q4) 1.0%,-4.6% previous

• 21:45 New Zealand Terms of Trade - Imports Prices (Q4) 0.6% forecast 
   
• 21:45  New Zealand Terms of Trade Index (QoQ) (Q4) 0.8% forecast, 1.9% previous

• 23;50 Japan Monetary Base (YoY) 2.9%    previous

• 00:00 Australia  HIA New Home Sales (MoM) 2.0% previous

• 00:00 Australia Jan Building Approvals (MoM)  1.0% forecast, -0.2% previous

• 00:00 Australia Current Account (Q4) 2.3B, 7.9B    previous

• 00:00 Australia March RBA Interest Rate Decision
     
Looking Ahead - Economic events and other releases (GMT)

• 00:00 Australia   RBA Rate Statement  

Cureencies Summaries

 EUR/USD: The euro rose against dollar on Monday as increased expectations that  Federal Reserve will easing monetary policy in a bid to counter the negative impact from the spread of the new coronavirus weighed on dollar. The panic in global markets prompted U.S. Federal Reserve Chairman Jerome Powell to issue a statement on Friday saying the Fed would “act as appropriate” to support the economy. Investors took his comments as a hint that the Fed will deliver a cut when it meets March 17-18. The euro was last up 0.11% at $1.0988 . Immediate resistance can be seen at 1.1187 (Daily high), an upside break can trigger rise towards 1.1200 (Psychological level).On the downside, immediate support is seen at 1.1054 (100 DMA), a break below could take the pair towards 1.0983 (5 DMA).

GBP/USD:  Sterling declined against dollar on Monday as traders took a cautious view at the start of talks between Britain and the European Union on their relationship after Brexit. The EU wants to give Britain beneficial access to its single market of 450 million people in exchange for guarantees that London would prevent dumping. But Prime Minister Boris Johnson has said Britain will not be bound by EU rules or the jurisdiction of its top court   all necessary, in the EU’s view, to ensure fair competition. By 2153 GMT, the pound was 0.4% lower at $1.2753. Immediate resistance can be seen at 1.2868 (5DMA), an upside break can trigger rise towards 1.291 4(11 DMA).On the downside, immediate support is seen at 1.2740 (Daily low), a break below could take the pair towards 1.2700 (Psychological level).

USD/CAD: The Canadian dollar rose against its U.S. counterpart on Monday, notching its biggest gain since the start of the year, as investors bet that global central banks would try to ease the economic impact of the coronavirus outbreak. At  (2153 GMT), the Canadian dollar was trading 0.4% higher at 1.3324 to the greenback, its biggest gain since Dec. 31 last year. The currency, which on Friday hit its weakest intraday level in nearly nine months at 1.3465, traded in a range of 1.3315 to 1.3445. Immediate resistance can be seen at 1.3347 (5 DMA), an upside break can trigger rise towards 1.3438 (Daily high).On the downside, immediate support is seen at 1.3295 (11 DMA), a break below could take the pair towards 1.3249 (30 DMA).

USD/JPY: The dollar strengthened against the Japanese yen on Monday as  hopes for a raft of global interest rate cuts to soften the economic blow of the coronavirus steadied nerves. The epidemic, which began in the Chinese province of Hubei, has killed 3,000 people worldwide as authorities race to contain infections in Japan, Iran, Italy, South Korea and the United States. Strong resistance can be seen at 108.39 (200 DMA), an upside break can trigger rise towards 109.29 (5 DMA).On the downside, immediate support is seen at 107.36 (Daily low), a break below could take the pair towards 107.00  (Psychological level). 

Equities Recap

European shares edged higher at the close after seesawing for most of the session on Monday, as traders swung their attention to the extra injections of support they now expect major central banks to provide following the coronavirus outbreak.

UK's benchmark FTSE 100 closed up by  1.13 percent, Germany's Dax ended down by 0.27 percent, France’s CAC finished the day up by 0.44 percent.        

U.S. stocks bounced back from recent losses on Monday, as the focus turned to assurances of central bank stimulus to counter the economic fallout from the coronavirus outbreak.

Dow Jones closed up by 5.08 percent, S&P 500 closed down by 4.60  percent, Nasdaq settled up   by 49 % percent.

Treasuries Recap

U.S. Treasury prices fell on Monday as long-dated yields rose from record lows, stocks soared   and investors cheered stimulus measures from global central banks meant to ease the economic impact of the coronavirus.

U.S. 10-year yields rose to 1.166%, from 1.126% late on Friday. During the session,10-year yields fell to a record low of 1.03%.  Yields on U.S. 30-year bonds were at 1.722%, down from 1.651% on Friday, after touching an all-time trough of1.583%. 

Commodities Recap

Gold rose nearly 1 percent on Monday after suffering its largest daily fall in nearly seven years, as expectations grew for policy easing by the U.S. Fed and other central banks to help boost the coronavirus-hit global economy.

Spot gold was up 0.9% at $1,598.35 an ounce at 10:09 a.m. EST (1509 GMT), and U.S. gold futures rose 2% to $1,598.20.

Oil prices rose over 4% on Monday, reversing an early fall to multi-year lows as hopes of a deeper cut in output by OPEC and stimulus from central banks countered worries about damage to demand from the coronavirus outbreak.

Brent crude  futures gained $2.23, or 4.5%, to settle at $51.90 a barrel. The session low of $48.40 was its lowest since July 2017.

U.S. West Texas Intermediate (WTI) crude  futures rose $1.99, or 4.5%, to settle at $46.75 a barrel. The session low of $43.32 a barrel was the lowest since December 2018.