Posted at 07 March 2019 / Categories Market Roundups
Market Roundup
Economic Data Ahead
Key Events Ahead
FX Beat
DXY: The dollar index eased as investors continued to digest soft U.S. economic data that showed goods trade deficit surged to a record high in 2018. The greenback against a basket of currencies traded 0.05 percent down at 96.82, having touched a high of 97.01 on Tuesday, its highest since February 19. FxWirePro's Hourly Dollar Strength Index stood at 78.08 (Slightly Bullish) by 1000 GMT.
EUR/USD: The euro rebounded from a 2-week low hit in the previous session after data showed Eurozone gross domestic product rose 0.2 percent quarter on quarter in the October-December period. However, the recovery appears fragile as investors remain cautious ahead of a European Central Bank meeting that is expected to slash growth forecasts and hint at a new round of ultra-cheap loans for eurozone banks. The European currency traded 0.1 percent up at 1.1312, having touched a low of 1.1285 the day before, its lowest since Feb. 19. FxWirePro's Hourly Euro Strength Index stood at -36.17 (Neutral) by 1000 GMT. Immediate resistance is located at 1.1341 (Feb. 13 High), a break above targets 1.1371 (Feb. 20 High). On the downside, support is seen at 1.1275 (Feb. 19 Low), a break below could drag it till 1.1234 (Feb. 15 Low).
USD/JPY: The dollar slumped to a 6-day low against the Japanese yen as financial investors turned cautious about the outlook for global growth. The major was trading 0.1 percent down at 111.65, having hit a high of 112.13 on Tuesday, its highest since December 20. FxWirePro's Hourly Yen Strength Index stood at 127.76 (Highly Bullish) by 1000 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of U.S. unemployment benefit claims, consumer claims and Fed Brainard's speech. Immediate resistance is located at 112.20, a break above targets 112.60 (Dec. 20 High). On the downside, support is seen at 111.32 (Mar. 1 Low), a break below could take it lower at 110.66 (Feb.28 Low).
GBP/USD: Sterling eased, extending previous session losses, as investors waited for some clarity to emerge out of Brexit negotiations between Britain and the European Union. The major traded 0.1 percent down at 1.3158, having hit a low of 1.3097 on Tuesday; it’s lowest since Feb.26. FxWirePro's Hourly Sterling Strength Index stood at 24.16 (Neutral) 1000 GMT. Immediate resistance is located at 1.3254 (March 4 High), a break above could take it near 1.3288 (Feb.26 High). On the downside, support is seen at 1.3093 (Feb. 26 Low), a break below targets 1.3011 (Feb. 20 Low). Against the euro, the pound was trading 0.2 percent down at 86.00 pence, having hit a low of 86.45 on Tuesday, it’s lowest since Feb 26.
USD/CHF: The Swiss franc rose, retreating from a 2-week low touched in the previous session as investors awaited some kind of resolution to U.S.-China trade negotiations. The major trades 0.1 percent down at 1.0037, having touched a high of 1.0056 on Wednesday; it’s highest since February 19. FxWirePro's Hourly Swiss Franc Strength Index stood at -95.15 (Slightly Bearish) by 1000 GMT. On the higher side, near-term resistance is around 1.0060 (February 19 High) and any break above will take the pair to next level till 1.0099 (February 11 High). The near-term support is around 1.0001 (February 19 Low), and any close below that level will drag it till 0.9983 (February 25 Low).
Equities Recap
European shares slumped, drifting further away from 5-month highs as investors cautiously prepared for the European Central Bank meeting
The pan-European STOXX 600 index slumped 0.4 percent at 374.09 points, while the FTSEurofirst 300 index declined 0.4 percent to 1,470.03 points.
Britain's FTSE 100 trades 0.5 percent down at 7,163.15 points, while mid-cap FTSE 250 eased 0.7 to 19,222.34 points.
Germany's DAX fell 0.5 percent at 11,525.11 points; France's CAC 40 trades 0.5 percent lower at 5,262.63 points
Commodities Recap
Crude oil prices surged to a near 1-week peak amid ongoing OPEC-led supply cuts and U.S. sanctions against exporters Venezuela and Iran, however, record U.S. crude output and rising commercial fuel inventories capped gains. International benchmark Brent crude was trading 1.1 percent up at $66.60 per barrel by 1027 GMT, having hit a high of $66.67, its highest since March 1. U.S. West Texas Intermediate was trading 0.8 percent higher at $56.60 a barrel, after rising as high as $57.85 on Friday, its highest since the November 16.
Gold prices slumped to a fresh 1-1/2 month low, as the greenback traded near its more than two-week high, while investors awaited European Central Bank's policy meeting due later in the day. Spot gold was 0.05 percent down at $1,285.89 per ounce by 1035 GMT, having touched a low of $1,280.57 earlier, its lowest since January 25. U.S. gold futures slipped 0.2 percent to $1,284.90 an ounce.
Treasuries Recap
The U.S. Treasuries traded tad higher during afternoon session ahead of the country’s weekly initial jobless claims data, scheduled to be released today by 13:30GMT, besides, the Q4 non-farm productivity, also due today. The yield on the benchmark 10-year Treasury yield slipped nearly 1 basis point to 2.684 percent, the super-long 30-year bond yields remained tad lower at 3.065 percent and the yield on the short-term 2-year traded nearly 1-1/2 basis points lower at 2.508 percent.
The German bunds remained flat during European session ahead of the European Central Bank’s (ECB) monetary policy meeting, due to be held today by 12:45GMT. The German 10-year bond yields, which move inversely to its price, hovered around 0.121 percent, the yield on 30-year note remained flat at 0.781 percent and the yield on short-term 2-year too remained barely changed at -0.518 percent.
The Australian government bonds surged during the Asian trading session after the country’s retail sales for the month of January missed market expectations, albeit showing an improvement from the prior reading in December last year. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, slumped 2 basis points to 2.077 percent, the yield on the long-term 30-year bond also fell nearly 2 basis points to trade at 2.643 percent and the yield on short-term 2-year traded nearly 1-1/2 basis points lower at 1.677 percent.