Posted at 22 February 2019 / Categories Market Roundups
Market Roundup
Economic Data Ahead
Key Events Ahead
FX Beat
DXY: The dollar index steadied, as top U.S. and Chinese trade negotiators discuss over the details of a set of agreements aimed at ending their trade war. The greenback against a basket of currencies trades 0.05 percent up at 96.63, having touched a low of 96.29 on Wednesday, its lowest since February 6. FxWirePro's Hourly Dollar Strength Index stood at 35.07 (Neutral) by 1000 GMT.
EUR/USD: The euro eased, extending losses for the third straight session after data showed German business morale fell for the sixth time in succession in February. The European currency traded 0.05 down at 1.1330, having touched a high of 1.1371 on Wednesday, its highest since Feb. 6. FxWirePro's Hourly Euro Strength Index stood at 66.52 (Bullish) by 1000 GMT. Immediate resistance is located at 1.1368 (Feb.7 High), a break above targets 1.1394 (Jan. 23 High). On the downside, support is seen at 1.1308 (10-DMA), a break below could drag it till 1.1289 (Feb. 18 Low).
USD/JPY: The dollar rallied against the Japanese yen as investors continued to watch high-level talks between U.S. and Chinese trade negotiators in Washington. The major was trading 0.2 percent up at 110.87, having hit a high of 110.95 on Wednesday, its highest since February 14. FxWirePro's Hourly Yen Strength Index stood at -75.77 (Slightly Bearish) by 1000 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of series of speeches by Fed officials. Immediate resistance is located at 111.05 (Feb. 13 Low), a break above targets 111.40 (Dec. 26 Low). On the downside, support is seen at 110.25 (Feb.15 Low), a break below could take it lower at 109.60 (Feb. 7 Low).
GBP/USD: Sterling plunged, extending losses for the third consecutive session, as investors remained cautious ahead of last-minute talks between the United Kingdom and the European Union on possible changes to the Brexit withdrawal agreement. The major traded 0.2 percent down at 1.3014, having hit a high of 1.3109 on Wednesday; it’s highest since February 1. FxWirePro's Hourly Sterling Strength Index stood at -7.01 (Neutral) 1000 GMT. Immediate resistance is located at 1.3103 (Feb. 4 High), a break above could take it near 1.3160 (January 31 High). On the downside, support is seen at 1.2996 (21-DMA), a break below targets 1.2928 (10-DMA). Against the euro, the pound was trading 0.3 percent down at 87.12 pence, having hit a high of 86.66 on Thursday, it’s highest since Jan. 29.
USD/CHF: The Swiss franc consolidated within narrow ranges, as investors waited for signs of progress on U.S.-China trade talks. The major trades 0.5 percent down at 1.0004, having touched a low of 0.9981 on Wednesday; it’s lowest since February 11. FxWirePro's Hourly Swiss Franc Strength Index stood at 100.25 (Highly Bearish) by 1000 GMT. On the higher side, near-term resistance is around 1.0054 (February 18 High) and any break above will take the pair to next level till 1.0111 (November 12 High). The near-term support is around 0.9961 (January 22 Low), and any close below that level will drag it till 0.9889 (December 7 Low).
Equities Recap
European shares advanced, boosted by upbeat corporate earnings results, while investors waited for news from crucial U.S.-China trade talks.
The pan-European STOXX 600 index rallied 0.4 percent at 370.81 points, while the FTSEurofirst 300 index surged 0.2 percent to 1,460.01 points.
Britain's FTSE 100 trades 0.4 percent up at 7,194.31 points, while mid-cap FTSE 250 gained 0.4 to 19,312.68 points.
Germany's DAX rose 0.2 percent at 11,450.84 points; France's CAC 40 trades 0.3 percent lower at 5,213.10 points
Commodities Recap
Crude oil prices surged, supported by OPEC's ongoing supply cuts and hopes that Washington and Beijing may soon end their trade dispute. International benchmark Brent crude was trading 0.4 percent up at $67.19 per barrel by 1009 GMT, having hit a high of $67.36 on Wednesday, its highest since November 19. U.S. West Texas Intermediate was trading 0.4 percent higher at $57.06 a barrel, after rising as high as $57.56 on Thursday, its highest since the November 16.
Gold prices edged down as signs that the U.S. Federal Reserve could raise interest rates again this year dented the safe-havens appeal. Spot gold eased 0.1 percent to $1,322.30 per ounce by 1011 GMT, having touched a high of $1,346.61 per ounce on Wednesday, its highest level since April 20. U.S. gold futures were up 0.1 percent at $1,329.1 per ounce.
Treasuries Recap
The Italian government bond yields surged 3 to 5 basis points higher across much of the bond curve. Italy's 10-year bond yield was last up 3 bps at 2.86 percent. The gap over German Bund yields was 273 bps compared with around 269 bps late Thursday. The German 10-year Bund yields dipped a basis point to around 0.12 percent.
The Japanese government bond prices edged higher, with the 10-year JGB yield easing half a basis point to minus 0.050 percent. The 20-year yield slipped 1 basis point to 0.390 percent, its lowest since November 2016.
The Australian government bond futures fell, with the three-year bond contract off 5.5 ticks at 98.350. The 10-year contract dropped 4 ticks to 97.9050.