Market Roundup
• US dollar only down against safe-haven Japanese yen
• Price of Brent crude oil decreases about 19%
• Canadian retail sales rise 0.3% in February
• US Indexes : Dow -2.67%, S&P 500 -3.07%, Nasdaq -3.48%
• Canada Feb Core Retail Sales (MoM) 0.0%, 0.3% forecast, -0.1% previous
• Canada Feb Retail Sales (MoM) 0.3%, 0.2% forecast, 0.4% previous
• US Redbook (YoY) -6.9%, -2.0% previous
• US Redbook (MoM) -10.6%, -8.3% previous
• US March Existing Home Sales 5.27M, 5.30M forecast, 5.77M previous
• US Existing Home Sales (MoM) -8.5%, -8.1% forecast, 6.5% previous
• New Zealand Global Dairy Trade Price Index -4.2%, 1.2% previous
Looking Ahead - Economic Data (GMT)
• 22:30 New Zealand April Business NZ PMI 53.2 previous
•00:30 Australia MI Leading Index (MoM) -0.4% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency summaries
EUR/USD: The euro edged lower against the U.S. dollar on Tuesday as investors cautiously awaited European Union summit later this week on how the EU will try to revive an economy hit by the pandemic. The EU summit will see member countries try to agree a package to revive an economy hit by the coronavirus pandemic. German Chancellor Angela Merkel signalled readiness on Monday to finance economic recovery in Europe through a bigger EU budget and the issuance of joint debt via the European Commission. Immediate resistance can be seen at 1.0893 (9 DMA), an upside break can trigger rise towards 1.0910 (21 DMA).On the downside, immediate support is seen at 1.0808 (9 DMA), a break below could take the pair towards 1.0741(Lower BB).
GBP/USD: The pound declined to hit 14 day low against the dollar on Tuesday as investors sought safe haven currencies following a crash in oil prices.U.S. oil futures turned negative for the first time ever on Monday, causing the dollar to rise to near two-week highs against a basket of assets as investors shunned riskier assets. The pound was down 1.20% at $1.2287, its lowest in 14 days, having fallen as low as $1.2268. Immediate resistance can be seen at 1.2355 (21 DMA), an upside break can trigger rise towards 1.2420 (5 DMA).On the downside, immediate support is seen at 1.2292 (50% fib), a break below could take the pair towards 1.2082 (lower BB).
USD/CAD: The Canadian dollar weakened to a near three-week low against its U.S. counterpart on Tuesday, as plunging oil prices overshadowed a stronger-than-expected increase for domestic retail sales in February. Benchmark Brent and U.S. oil futures for June delivery plunged to around two-decade lows, a day after U.S. May futures sank into negative territory for the first time in history as demand tumbled due to the coronavirus crisis. Brent crude oil futures lost 19.1% to $20.70. Immediate resistance can be seen at 1.4221(Daily high), an upside break can trigger rise towards 1.4329 (Higher BB).On the downside, immediate support is seen at 1.4076 (21 DMA), a break below could take the pair towards 1.4028 (9 DMA).
USD/JPY: The dollar declined against the Japanese yen on Tuesday, as investors sought the safety of Japanese yen in a risky market. Investors scrambled for safety, mainly driven by a crash in oil markets as the pandemic hurt economies. The oil price crash was caused by a lack of storage as demand shriveled in an oversupplied market amid worldwide lockdowns that kept people at home and businesses shuttered in efforts to contain the spread of the virus. Strong resistance can be seen at 107.88 (11 DMA), an upside break can trigger rise towards 108.31 (21 DMA).On the downside, immediate support is seen at 107.00 (Psychological level), a break below could take the pair towards 106.35 (lower BB).
Equities Recap
Safety-seeking investors bought
U.S. Treasuries on Tuesday, pushing yields on the five-year note to a record low, as the difficulties of restarting the U.S. economy amid the COVID-19 pandemic sank in.
UK's benchmark FTSE 100 closed down by by 0.45 percent, Germany's Dax ended down by 3.99 percent, France’s CAC finished the day down by 3.77 percent.
Wall Street tumbled for a second straight day on Tuesday as a collapse in U.S. oil prices and glum forecasts by companies worsened fears of a deep economic downturn.
Dow Jones closed down by 2.67%percent, S&P 500 closed down by 3.07% percent, Nasdaq settled down by 3.47 % percent.
Treasuries Recap
Safety-seeking investors bought U.S. Treasuries on Tuesday, pushing yields on the five-year note to a record low, as the difficulties of restarting the U.S. economy amid the COVID-19 pandemic sank in.
The benchmark 10-year yield was down 5.7 basis points in afternoon trading at 0.5691%. Yields on the five-year note hit an all-time low of 0.301%, and on the two-year its lowest since 2011.
Commodities Recap
Gold prices dropped nearly 2% to a near two-week low on Tuesday, while palladium slumped 15.5% as investors scrambled for cash to cover losses in other asset classes mainly driven by a crash in oil markets as the coronavirus wrecks economies.
Spot gold was down 0.6% at $1,682.93 per ounce at 10:58 a.m. EDT (1458 GMT), having earlier hit a low since April 9 at $1,659.68. U.S. gold futures dropped 0.5% to $1,702.90.
Oil futures for June plunged to near two-decade lows on Tuesday, as the panic that sent U.S. May futures to below minus $40 per barrel on Monday bled further into the markets due to worries about the coronavirus pandemic’s effect on fuel demand in a market overrun by supply.
Brent futures for June delivery fell $6.34, or 24.8%, to $19.23 a barrel by 11:45 a.m. EDT (1545 GMT), while U.S. crude for June fell about $7, or 35%, to around $13.34.
