Market Roundup
• German Feb CPI (YoY) 1.7%,1.7% forecast, 1.7% previous
• German Feb CPI (MoM) 0.4%,0.4% forecast, -0.6% previous
• German Feb HICP (MoM) 0.6%,0.6% forecast, -0.8% previous
• French CPI (YoY) 1.4% ,1.4% forecast, 1.5% previous
• French Feb CPI (MoM) 0.0%,0.0% forecast, -0.4% previous
• French HICP (MoM) 0.0%,-0.5% forecast, -0.5% previous
• Spanish Feb CPI (MoM) -0.1% .-0.1% forecast , -1.0% previous
• Spanish Feb CPI (YoY) 0.7%,0.8% forecast, 1.1% previous
• 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 Import Price Index (YoY) -1.2%, 0.3% previous
Looking Ahead - Economic Data (GMT)
• 14:00 US March Michigan 5-Year Inflation Expectations 2.30% previous
• 14:00 US March Michigan Consumer Expectations 88.2 forecast, 92.1 previous
•14:00 US March Michigan Consumer Sentiment 95.0 forecast, 101.0 previous
• 14:00 US March Michigan Current Conditions 112.0 forecast, 114.8 previous
• 14:00 US March Michigan Inflation Expectations 2.4% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Friday, after the European Central Bank underwhelmed investors by not cutting rates. 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. ECB President Christine Lagarde aggravated a market selloff by saying it was not the central bank’s job to close the spread between the borrowing costs of various members, comments which she later tried to roll back. 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: Sterling fell against the U.S. dollar on Friday, after U.S. President Donald Trump slapped restrictions on travel from Europe and European Central Bank stimulus measures fell short of expectations. On Thursday, a comment by ECB President Christine Lagarde that the central bank was not there to “close spreads” hit peripheral government bond markets especially hard.The ECB was expected to lower interest rates and provide more targeted support that would reduce government borrowing costs, but the bank’s focus was deemed to be in helping banks. 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/CHF: The dollar gained against the Swiss franc on Friday, as demand for safe haven assets decreased after investors took comfort from liquidity injections and governments explored other measures to calm markets. The U.S. Federal Reserve said it will inject another $1 trillion on Friday in an effort to stop borrowing costs from rising, in addition to Thursday’s $500 billion. Central banks in Australia and Japan also made billions of dollars’ worth of injections. At (GMT 12:16), Greenback dipped 0.78% versus the Swiss franc to 0.9296. Immediate resistance can be seen at 0.9562 (23.6% fib), an upside break can trigger rise towards 0.9600 (Psychological level).On the downside, immediate support is seen at 0.9444(9 DMA), a break below could take the pair towards 0.9369 (61.8% fib).
USD/JPY: The dollar rose against the Japanese yen on Friday, on hopes of a coordinated stimulus package from world governments after several sessions of sustained, heavy losses on expectations of a global recession that could be prolonged. The Bank of Japan, which will announce a policy decision next week Thursday after the Fed, announced the unscheduled purchase of 200 billion yen ($1.90 billion) in government debt on Friday. It also said it would inject an additional 1.5 trillion yen in two-week lending in a sign of concern that liquidity could dry up. Strong resistance can be seen at 107.48 (9DMA), an upside break can trigger rise towards 108.20 (21 DMA).On the downside, immediate support is seen at 105.59 (9 DMA), a break below could take the pair towards 105.00 (Psychological level).
Equities Recap
European stock markets bounced back on Friday from their worst day ever, as signs of a U.S. stimulus package helped soothe fears about an economic shock from the coronavirus pandemic. Bank stimulus measures fell short of expectations..
At (GMT 13:50),UK's benchmark FTSE 100 was last trading up at 4.35 percent, Germany's Dax was up by 3.76 percent, France’s CAC finished was up by 4.97 percent.
Commodities Recap
Gold rose slightly on Friday as investors weighed the economic hit from the coronavirus outbreak and as financial markets stabilized a bit after a rout, but the bullion was still headed for its worst week in more than three years.
Spot gold was up 0.8% to $1,588.83 per ounce by 0703 GMT, having fallen more than 1% earlier. For the week, the precious metal is down 5.1% - the most since November 2016 - including Thursday’s 4.5% slide.U.S. gold futures fell 0.1% to $1,589.20.
Oil prices were up more than 5% on Friday but set for their worst weekly drubbing since the 2008 financial crisis as investors fretted over the coronavirus knocking demand and plans by producers to boost output.
Brent crude was up $1.77, or 5.3%, at $34.99 per barrel by 1011 GMT after falling more than 7% on Thursday.
Treasury Recap
Euro zone government bond yields rose on Friday as government debt remained under pressure after Thursday’s selloff, when the European Central Bank disappointed markets with its measures to contain the fallout from the coronavirus.
Italy’s 10-year bond yield had soared almost 60 basis points on Thursday to its highest level since July at around 1.88% , its biggest one-day jump since the height of the euro zone debt crisis in 2011.
