America’s Roundup: Dollar surges vs yen as stock markets rally ,Wall Street bounces, Gold dives, Oil prices hit by coronavirus and price war eruption-March 15th,2020

Market Roundup

• US Export Price Index (YoY) -1.3%,0.4% previous

• US Feb Export Price Index (MoM) -1.1%,-0.4% forecast, 0.6% previous

• US Feb Import Price Index (MoM) -0.5%,-0.8% forecast, 0.1% previous

• US Import Price Index (YoY) -1.2%, 0.3% previous

• Russia Jan Trade Balance 12.48B, 13.70B forecast, 15.47B previous 

• US Michigan 5-Year Inflation Expectations 2.30%, 2.30% previous

• US Michigan Consumer Expectations 85.3, 88.2 forecast, 92.1 previous

• US March Michigan Consumer Sentiment 95.9, 95.0 forecast, 101.0 previous

Looking Ahead - Economic Data (GMT)    

• No data ahead

Looking Ahead - Economic events and other releases (GMT)    

• No significant events

EUR/USD: The euro nursed losses against dollar on Friday, after ECB disappointed markets with Thursday’s stimulus package. European assets were sold off on Thursday after investors were underwhelmed by the bank's stimulus measures. The ECB on Thursday announced a stimulus package that provides loans to banks with rates as low as -0.75% and increases bond purchases, but it did not join its counterparts in the United States and Britain by cutting rates. The euro was last down 0.9% at $1.1091. Immediate resistance can be seen at 1.1231 (9 DMA), an upside break can trigger rise towards 1.1343 (12th March high).On the downside, immediate support is seen at 1.1032  (21 DMA), a break below could take the pair towards 1.1000 (Psychological level).

GBP/USD: The sterling weakened to a five-month low against dollar on Friday, erasing earlier gains, as the dollar rallied across the board in volatile trading. The dollar had sunk in Asian and early London sessions, then regained all its losses and went onto post sharp gains against the safe-haven yen as stock markets recovered globally amid efforts made by governments and policymakers to address the coronavirus outbreak.By the late afternoon, the British currency had fallen 1.6% to $1.2363 after rising above $1.26 early in the session.. Immediate resistance can be seen at 1.25710 (38.2% fib), an upside break can trigger rise towards 1.2695 (38.2% fib).On the downside, immediate support is seen at 1.2433 (23.6 % Fib), a break below could take the pair towards 1.2400 (Psychological level).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday, rebounding from a four-year low the day before, as expectations climbed that policymakers would provide stimulus to help contain the impact of the coronavirus outbreak. World stocks and the price of oil, one of Canada's major exports, bounced off their lows as central banks stepped in to ease a liquidity squeeze and U.S. Democrats and Republicans signaled they could soon agree on support measures. At (1251 GMT), the Canadian dollar was trading 0.6% higher at 1.3835 to the greenback. Immediate resistance can be seen at 1.3991(Daily high), an upside break can trigger rise towards 1.4073 (50%fib level).On the downside, immediate support is seen at 1.3788 (5 DMA), a break below could take the pair towards 1.3700  (Psychological level).

USD/JPY: The dollar surged against dollar on Friday, posting sharp gains against the safe-haven Japanese yen as stock markets recovered globally and investors cheered efforts by governments and policymakers to address the economic fallout from the coronavirus outbreak. The dollar also benefited from a news report that U.S. President Donald Trump will declare a national emergency over the fast-spreading coronavirus on Friday, opening the door to more federal aid to combat the disease. Strong resistance can be seen at 108.30 (21 DMA), an upside break can trigger rise towards 109.00(Psychological level).On the downside, immediate support is seen at 106.10 (9 DMA), a break below could take the pair towards 105.00 (5 DMA). 

Equities Recap

European stocks staged a solid comeback, rising 8% by Friday afternoon after record losses in the previous session, as hopes grew for coordinated stimulus efforts to stymie the economic shock from the coronavirus pandemic.

UK's benchmark FTSE 100 closed up by  2.44 percent, Germany's Dax ended up by 0.77 percent, France’s CAC finished the day up by 1.83 percent.     
   
U.S. stock indexes rebounded on Friday as investors bet on another round of fiscal easing to thwart a looming global recession in the face of the coronavirus pandemic.

Dow Jones closed down  by  9.36% percent, S&P 500 closed down by 9.29% percent, Nasdaq settled down  by 9.35% percent.

Treasuries Recap

U.S. Treasury yields rose on Friday as liquidity remained a problem in the volatile market even after the New York Federal Reserve's action to make a massive amount of cash available in an effort to calm jitters as the coronavirus spreads. 

 The 10-year note yield was last at 0.952%, up from 0.852% at Thursday's close.

Commodities Recap

Gold tumbled as much as 4.5% on Friday, headed for its biggest weekly loss since 1983 as investors embarked on a selling spree to hoard cash and meet margin calls across other markets which have been battered by the impact of the coronavirus outbreak.

Spot gold   slid 4% to $1,513.11 per ounce at 2:54 p.m. EDT (1854 GMT). For the week, it was down more than 9%, the most since 1983. U.S. gold futures  settled down 4.6% at $1,516.70.

Oil prices were on track for their worst week since the 2008 global financial crisis after the coronavirus outbreak rocked the world economy while top exporter Saudi Arabia and its allies stepped up plans to flood the market with record levels of supply.

U.S. West Texas Intermediate (WTI) crude futures were on track for a fall of about 20% on the week, their biggest percentage decline since the 2008 financial crisis. WTI was up 40 cents, or 1.2%, to $31.90 a barrel, after earlier gaining to $33.87 a gallon.