Market Roundup
• US Continuing Jobless Claims1,722K, 1,723K forecast, 1,733K previous
• US Feb Core PPI (MoM) -0.3%,0.1% forecast, 0.5% previous
• US Initial Jobless Claims 211K, 218K forecast, 215K previous
• US Feb PPI (MoM) -0.6%,-0.1% forecast, 0.5% previous
• US Natural Gas Storage -48B, -59B forecast, -109B previous
• Russia Feb Budget Balance % of GDP 1.70%,-2.00% previous
Looking Ahead - Economic Data (GMT)
• 21:00 New Zealand Westpac Consumer Sentiment 109.9 previous
• 21:30 New Zealand Feb Business NZ PMI 50.3, 49.6 previous
• 21:45 New Zealand Feb FPI (MoM) 2.1% previous
•02:00 Japan March Thomson Reuters IPSOS PCSI 40.41 previous
•02:00 China March Thomson Reuters IPSOS PCSI 59.86 previous
•04:30 Japan Tertiary Industry Activity Index (MoM) 1.2% forecast. -0.2% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro weakened against dollar on Thursday, as investors were unimpressed by the European Central Bank’s stimulus measures to fight the economic fallout from the coronavirus outbreak. The ECB approved fresh stimulus measures on Thursday to help the euro zone economy cope with the growing cost of the coronavirus epidemic, but kept interest rates unchanged. The euro fell more than 1% to $1.1172.The dollar rebounded sharply after the ECB announcement, and was last up 1% against a basket of currencies at 97.513. Immediate resistance can be seen at 1.1230 (9 DMA), an upside break can trigger rise towards 1.1333 (Psychological level).On the downside, immediate support is seen at 1.1042 (50 DMA), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: Sterling declined to hit five-month lows on Thursday, as sterling was weighed down by worsening market turmoil after U.S. President Donald Trump slapped restrictions on travel from Europe. The British currency received a short-lived boost on Wednesday when investors welcomed stimulus measures from the Bank of England and the British government, including an interest rate cut and billions of pounds of support for struggling firms.But the pound has since tumbled, first following Trump’s flight ban and then again as investors scrambled for dollars following the European Central Bank’s decision to keep interest rates on hold. Immediate resistance can be seen at 1.2702 (200 DMA), an upside break can trigger rise towards 1.2800 (300 DMA).On the downside, immediate support is seen at 1.2491 (Daily low), a break below could take the pair towards 1.2430 ( 23.6 fib).
USD/CAD: The Canadian dollar weakened to a four-year low against its U.S. counterpart on Thursday as investors increasingly worried that measures taken to contain the coronavirus outbreak will disrupt the world economy. U.S. crude oil futures were down 7.8% at $30.41 a barrel. The slump in oil is being compounded by the threat of a flood of cheap supply after Saudi Arabia and the United Arab Emirates said they would raise output in a standoff with Russia. Immediate resistance can be seen at 1.3891 (Daily High), an upside break can trigger rise towards 1.3900 (Psychological level).On the downside, immediate support is seen at 1.3800 (23.6% fib), a break below could take the pair towards 1.3745 (38.2% fib).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday, after markets expressed disappointment in the European Central Bank’s easing measures to contain the fallout from the coronavirus. The dollar had earlier struggled after U.S. President Donald Trump banned travel from Europe to stem the coronavirus. With the latest ban posing a fresh disruption to the global economy, traders were also disappointed by the lack of broad measures in Trump's plan to fight the pathogen, prompting traders to bet on further aggressive easing by the Federal Reserve. The dollar up 0.87% against the Japanese currency to 105.40. Strong resistance can be seen at 105.90 (61.8% fib), an upside break can trigger rise towards 106.00 (Psychological level).On the downside, immediate support is seen at 104.84 (50% fib ), a break below could take the pair towards 104.00 (Psychological level).
Equities Recap
European shares plunged 11.5% on Thursday, their worst daily loss on record, as responses by governments and central banks to combat the potential economic hit from the fast-spreading coronavirus got a cold welcome.
UK's benchmark FTSE 100 closed down by 10.93 percent, Germany's Dax ended down by 12.24 percent, France’s CAC finished the day down by 12.28 percent.
U.S. stock index futures cratered on Thursday, dropping near to their maximum down limit, after President Donald Trump failed to reassure markets with measures to limit the impact of the coronavirus pandemic.
Dow Jones closed down by 9.98 percent, S&P 500 ended down by 9.92 percent, Nasdaq finished up by 9.43 percent.
Treasuries Recap
U.S. Treasury yields tumbled on Thursday as stocks took another beating and anticipation grew for aggressive easing on the part of the Federal Reserve to help deal with the economic fallout from the spreading coronavirus.
The 10-year note yield was last at 0.666%, down from 0.822% at Wednesday’s close.
Gold slumped 4% on Thursday as investors rushed to cover margin calls in other assets.
Spot gold , meanwhile, was down 2.6% at $1,592.61 per ounce by 02:10 p.m. EDT (1810 GMT). U.S. gold futures settled 3.2% lower to $1,590.30.
Brent crude slid 7% on Thursday after President Donald Trump restricted travel to the United States from Europe as part of measures to try to halt the spread of coronavirus after the World Health Organization described the outbreak as a pandemic.
Brent crude was down $2.57, or 7.2%, at $33.22 a barrel while U.S. West Texas Intermediate Texas crude was down $1.48, or 4.5%, at $31.50.
Brent crude slid 7% on Thursday after President Donald Trump restricted travel to the United States from Europe as part of measures to try to halt the spread of coronavirus after the World Health Organization described the outbreak as a pandemic.
