Market Roundup
•Canada Mar Reserve Assets Total 118.0B, 116.3B previous
•Canada Imports 331.90B,324.60B previous
•US Exports 263.00B, 257.20B previous
•US Claims 4-Week Avg. 214.25K,211.00K previous
•US Continuing Jobless Claims1,791K, 1,819K previous
•US Feb Exports 66.62B,62.29B previous
•US Feb Trade Balance -68.90B,-66.90B forecast, -67.40B previous
•Canada Trade Balance 1.39B ,0.70B forecast,0.50B previous
•Canada Feb Imports 65.23B, 61.79B previous
•US Initial Jobless Claims 221K ,213K forecast,210K previous
Looking Ahead Economic Data(GMT)
•00:30 Australia Retail Sales (MoM) 0.3% forecast,1.1% previous
•00:30 Australia Trade Balance 10.500B forecast, 11.027B previous
•00:30 Australia Exports (MoM) 1.6% previous
•00:30 Australia Imports (MoM) 1.3% previous
Looking Ahead Events And Other Releases(GMT)
• No significant Events
Currency Summaries
EUR/USD: The euro rose on Thursday as dollar dipped after economic data supported expectations for quick interest rate cuts in the U.S.An unexpected slowdown in U.S. services growth, supporting the idea of bringing interest rates down, had pushed the dollar lower on Wednesday.Still, the U.S. currency was able to pare some earlier losses after Minneapolis Federal Reserve President Neel Kashkari said rate cuts might not be required this year if inflation continues to stall Richmond Fed President Thomas Barkin said on Thursday that inflation data at the start of this year has been a little less encouraging, and raises the question of whether we are seeing a real shift in the economic outlook, or merely a bump along the way. The euro was up 0.12% on Thursday and back to the middle of a range it has kept for a year at $1.085.Immediate resistance can be seen at 1.0797(9EMA), an upside break can trigger rise towards 1.0821(23.6%fib).On the downside, immediate support is seen at 1.0760 (38.2%fib), a break below could take the pair towards 1.0717 (50%fib).
GBP/USD: Sterling edged higher against a weakening dollar on Thursday as investors focused on the Bank of England's policy path and the economic outlook. The pound jumped versus the greenback the day after U.S. data showed services industry growth slowed further in March, while a measure of prices paid by businesses for inputs dropped to a four-year low, which bodes well for the inflation outlook and increases the chances of quick rate cuts by the Fed.Sterling gained by 0.05% at $1.2642 versus the greenback on Thursday after hitting a fresh one-week high at 1.2667. Immediate resistance can be seen at 1.2680(Daily high), an upside break can trigger rise towards 1.2705(23.6%fib).On the downside, immediate support is seen at 1.2640(38.2%fib), a break below could take the pair towards 1.2626(5EMA).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Thursday, giving back its earlier gains, as investors assessed recent strength in commodities and awaited domestic jobs data that could offer clues on prospects of avoiding a recession. Canada is a major producer of commodities, including oil, copper and gold. It recorded a bigger-than-expected trade surplus of C$1.39 billion ($1.03 billion) in February as a record level of unwrought gold helped exports outpace the rise in imports.The loonie was trading 0.1% lower at 1.3535 to the U.S. dollar , after touching its strongest intraday level since March 21 at 1.3479. The pullback from a two-week high came as Wall Street turned lower. Immediate resistance can be seen at 1.3548(9EMA), an upside break can trigger rise towards 1.3582 (23.6%fib).On the downside, immediate support is seen at 1.3505 (38.2%fib), a break below could take the pair towards 1.3447(50%fib).
USD/JPY: The dollar edged higher on Thursday but gains were limited on increased threat of currency intervention by Tokyo. The battered Japanese yen , down nearly 25% since early 2022 and around 1% after the Bank of Japan (BOJ) raised interest rates last month for the first time in 17 years, was expected to be one of the biggest gainers against the dollar among major currencies in the coming year. Currently trading at 151.7 per dollar, the yen was forecast to rise about 6.1% to 143 by the end of September, before strengthening another 2.9% to 139 in 12 months. The BOJ is forecast to hike at least once more this year. The last time they intervened was when the currency fell to lows near 152 per dollar in October 2022.Strong resistance can be seen at 151.71(23.6%fib), an upside break can trigger rise towards 152.86(Higher BB).On the downside, immediate support is seen at 151.62 (Daily low), a break below could take the pair towards 150.46(38.2%fib).
Equities Recap
European stocks edged higher on Thursday, led by cyclical sectors such as miners and automakers, as investors were encouraged by signs of recovery in the euro zone economy as well as inflation getting under control.
UK's benchmark FTSE 100 closed up by 0.48 percent, Germany's Dax ended by 0.19 percent, France’s CAC finished the day down by 0.02 percent.
The three major U.S. stock indexes fell more than 1% each and the S&P 500 had its biggest daily percentage drop since Feb. 13 on Thursday as Federal Reserve officials took a cautious approach in comments on the outlook for interest rate cuts, and investors braced for Friday's U.S. monthly jobs report.
Dow Jones closed down by 1.35% percent, S&P 500 closed down by 1.23 % percent, Nasdaq settled down by 1.40% percent.
Commodities Recap
Gold prices took a breather on Thursday after hitting an all-time high earlier in the session on expectations for lower U.S. interest rates this year, as investors await more clarity on the timing of the cuts.
Spot gold was steady at $2,300.49 per ounce as of 2:50 p.m. EDT (1850 GMT) after hitting a record high of $2,304.09 earlier in the day.U.S. gold futures settled 0.2% lower at $2,308.5.
Oil prices extended gains on Thursday, settling up more than $1 as geopolitical tensions and output cuts outweighed caution about U.S. Federal Reserve rate cuts.
Brent futures for June rose above $91 a barrel before settling up $1.30, or 1.5%, to $90.65. U.S. West Texas Intermediate (WTI) futures for May settled up $1.16, or 1.4% to $86.59 a barrel.
