America’s Roundup: U.S. dollar dips as traders brace for more Fed rate cuts,Wall Street tumbles, Gold jumps to over 1-week high, Oil falls, OPEC backs deeper supply cuts-March 6th,2020

Market Roundup

• Dollar steadies slide, but struggles to advance

•US Feb Challenger Job Cuts  56.660K, 67.735K previous

• US Challenger Job Cuts (YoY) -26.3%,27.8% previous

• Russia Central Bank Reserves (USD) 570.0B, 563.1B previous  
 
• US Continuing Jobless Claims 1,729K, 1,733K forecast, 1,722K1,722K previous  
 
•US Initial Jobless Claims 216K, 215K forecast, 219K previous    

• US Jobless Claims 4-Week Avg    213.00K, 209.75K previous

• US Nonfarm Productivity (QoQ) (Q4) 1.2%,1.4% forecast, -0.2% previous

• US Jan  Durables Excluding Defense (MoM)  3.7%,3.6%  previous    

•US Jan  Factory Orders (MoM)  -0.5%,-0.1% forecast, 1.9% previous    

•US Jan   Factory orders ex transportation (MoM) -0.1% , 0.6% previous    

Looking Ahead - Economic events and other releases (GMT)

• 23:00 Japan Jan Overall wage income of employees  -0.2% previous        

• 23:00  Japan Overtime Pay (YoY)  -2.30% previous

• 23:30 Japan Average Cash Earnings (YoY) 1.3%    , 0.0% previous

• 23:30 Japan Jan Household Spending (YoY) -4.0%,-4.8% previous

• 23:30 Japan Jan Household Spending (MoM)  0.9%,-1.7% previous

• 00:30 Australia Jan Retail Sales (MoM)  -0.5% previous    

Fx Beat    

EUR/USD: The euro strengthened against dollar on Thursday as the dollar slid as the number of coronavirus cases outside China mounted rapidly. U.S. markets swung sharply higher Wednesday after the strong performance of former Vice President Joe Biden in the Democratic nomination campaign and the U.S. House of Representatives approved an $8.3 billion funding bill to combat the coronavirus. But the rising number of cases, and deaths, outside of China swiftly changed the mood Immediate resistance can be seen at 1.1218 (Higher BB), an upside break can trigger rise towards 1.1238 (31st Dec high).On the downside, immediate support is seen at 1.1136 (5 DMA), a break below could take the pair towards 1.1098 (200 DMA)..

GBP/USD: Sterling hit its highest level in a week to the dollar on Thursday as expectations waned for an immediate Bank of England rate cut to follow this week’s emergency move from the U.S. Federal Reserve to contain coronavirus damage. Incoming BoE governor Andrew Bailey dampened expectations of an inter-meeting cut late on Wednesday, telling lawmakers the central bank should wait until it has more clarity about the economic hit from the outbreak. That allowed the pound, which has been weighed down by rate-cut expectations in recent days, to recover some ground. Immediate resistance can be seen at 1.2977 (100 DMA), an upside break can trigger rise towards 1.3075 (Higher BB).On the downside, immediate support is seen at 1.2871 (9 DMA), a break below could take the pair towards 1.2800 (Psychological level).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday as concern about the economic impact of the coronavirus outbreak rose weighing on Canadian dollar. The price of oil, one of Canada's major exports, declined as the epidemic showed no signs of slowing, and while major producers agreed on deeper output cuts to bolster prices, they could not immediately secure Russian support for the decision. Immediate resistance can be seen at 1.3437(Daily high), an upside break can trigger rise towards 1.3467 (Feb 28th high).On the downside, immediate support is seen at 1.3386 (5 DMA), a break below could take the pair towards 1.3332 (11 DMA).

USD/JPY: The dollar declined against the Japanese yen on Thursday as traders bet the U.S. Federal Reserve will cut interest rates further, after slashing them by 50 basis points this week in an emergency move to shield the economy from the effects of coronavirus. Monetary policy easing in the United States fueled by worries about the economic impact of the coronavirus is endangering the dollar’s years-long rally and giving a boost to currencies around the world. At (GMT 18:30), the yen was last up 1.11 % at 106.33. Strong resistance can be seen at 107.47 (5 DMA), an upside break can trigger rise towards 108.65 (9 DMA).On the downside, immediate support is seen at 106.20 (Daily low), a break below could take the pair towards 106.00  (Psychological level). 

Equities Recap

European shares snapped a three-day gaining streak on Thursday as concerns over the scale of economic damage caused by the coronavirus outbreak overtook optimism over support from monetary stimulus.

UK's benchmark FTSE 100 closed up by 1.63 percent, Germany's Dax ended down by 1.51 percent, France’s CAC finished the day down by 1.90 percent.

U.S. stock indexes dropped more than 2% on Thursday as the swift spread of the coronavirus in the United States led California to declare an emergency, while airline stocks were hammered by crippled travel demand.

At GMT (18:59) Dow Jones was trading  down by 1.51 percent, S&P 500 was trading  lower by 1.62 percent, Nasdaq was trading  down by 2.66 percent.

Treasuries Recap

U.S. Treasuries rallied on Thursday as the market weighed the implications of increasing coronavirus quarantines on the global economy.

 The 10-year Treasury yield has fallen in 10 of the last 11 sessions, slipping below 1% for the first time ever on Tuesday after the Federal Reserve cut interest rates by 50 basis points in response to the virus' widening impact.

Commodities Recap

Gold climbed over 1% to a more than one-week high on Thursday as worries over the global spread of the coronavirus spurred safe-haven flows and raised hopes of further monetary policy easing by major central banks.

Spot gold had gained 1.4% to $1,657.78 per ounce by 09:59 a.m. EST (1459 GMT). U.S. gold futures jumped 1% to $1,658.80. 
   
Oil prices edged lower on Thursday as the coronavirus epidemic showed no signs of slowing, with deaths mounting globally, but losses were limited as major producers agreed on deeper output cuts to bolster prices.

Brent crude fell by 34 cents, or 0.7%, to $50.79 a barrel by 11:52 a.m. ET (1652 GMT.) U.S. West Texas Intermediate (WTI)  was down 17 cents, or 0.4%, at $46.61.