Posted at 05 April 2019 / Categories Market Roundups
Market Roundup
Economic Data Ahead
Key Events Ahead
FX Beat
DXY: The dollar index steadied as investors awaited the release of the U.S. nonfarm payroll data for further insights on the strength of the economy. The greenback against a basket of currencies traded 0.05 percent up at 97.35, having touched a peak of 97.52 on Tuesday, its highest since Mar. 8. FxWirePro's Hourly Dollar Strength Index stood at 64.71 (Bullish) by 1000 GMT.
EUR/USD: The euro surged after data showed German industrial output rose by 0.7 percent in February as mild weather helped a surge in construction activity. The European currency traded 0.1 percent up at 1.1231, having touched a low of 1.1183 on Tuesday, its lowest since Mar. 7. FxWirePro's Hourly Euro Strength Index stood at 112.09 (Highly Bullish) by 1000 GMT. Immediate resistance is located at 1.1285 (Mar. 28 High), a break above targets 1.1331 (Mar. 25 High). On the downside, support is seen at 1.1176 (Mar. 7 Low)., a break below could drag it till 1.1155.
USD/JPY: The dollar advanced to a 3-week peak, as investor risk sentiment improved after U.S. President Donald Trump stated that a deal with China could be announced within four weeks. The major was trading 0.1 percent up at 111.73, having hit a high of 111.80, its highest since Mar. 15. FxWirePro's Hourly Yen Strength Index stood at -104.67 (Highly Bearish) by 1000 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. nonfarm payrolls, unemployment rate, and consumer credit change. Immediate resistance is located at 111.92 (Mar. 6 High), a break above targets 112.13 (Mar. 5 High). On the downside, support is seen at 111.06 (Mar. 13 Low), a break below could take it lower at 110.74 (Mar. 8 Low).
GBP/USD: Sterling steadied as Prime Minister Theresa May asked the European Union to delay Brexit until late June. However, disagreement between British lawmakers to agree on a withdrawal deal continued to dent the British pounds bid tone. The major traded 0.05 percent up at 1.3071, having hit a high of 1.3196 on Wednesday; it’s highest since Mar. 28. FxWirePro's Hourly Sterling Strength Index stood at -34.54 (Neutral) 1000 GMT. Immediate resistance is located at 1.3149 (Apr. 1 High), a break above could take it near 1.3227 (Mar. 21 High). On the downside, support is seen at 1.3034 (Mar. 28 Low), a break below targets 1.3003 (Mar. 21 Low). Against the euro, the pound was trading 0.2 percent down at 85.93 pence, having hit a high of 85.02 on Wednesday, it’s highest since Mar. 27.
USD/CHF: The Swiss franc plunged to a 2-week low, as the greenback surged amid signs of progress in the U.S.-China trade dispute. The major trades 0.05 percent up at 1.0004, having touched a high of 1.0005 earlier; it’s highest since Mar. 20. FxWirePro's Hourly Swiss Franc Strength Index stood at -6.50 (Neutral) by 1000 GMT. On the higher side, near-term resistance is around 1.0024 (Feb. 22 High) and any break above will take the pair to next level till 1.0052 (Mar. 15 High). The near-term support is around 0.9937 (Mar. 28 Low), and any close below that level will drag it till 0.9895 (Jan.17 Low).
Equities Recap
European shares consolidated as investors waited for concrete progress in trade talks between the United States and China ahead of highly influential U.S. nonfarm payroll report.
The pan-European STOXX 600 index surged 0.05 percent at 387.98 points, while the FTSEurofirst 300 index rallied 0.05 percent to 1,524.81 points.
Britain's FTSE 100 trades 0.2 percent up at 7,416.11 points, while mid-cap FTSE 250 rose 0.1 to 19,517.63 points.
Germany's DAX declined 0.1 percent at 11,979.80 points; France's CAC 40 trades 0.2 percent higher at 5,475.09 points.
Commodities Recap
Crude oil prices declined, weighed down by supply concerns and worries about progress in U.S.-China trade talks. International benchmark Brent crude was trading 0.1 percent down at $69.18 per barrel by 1024 GMT, having hit a high of $70.00 on Thursday, its highest since Nov. 12. U.S. West Texas Intermediate was trading 0.2 percent down at $62.05 a barrel, after rising as high as $62.96 on Wednesday, its highest since the Nov. 7.
Gold prices slipped but were consolidating above the 10-week low touched in the previous session, as dollar rallied against the yen on signs of progress in the U.S.-China trade dispute and upbeat U.S. economic data. Spot gold declined 0.2 percent to $1,290.04 per ounce by 1032 GMT, having touched a low of $1,280.80 on Thursday, its lowest since March 7 and was down about 0.2 percent for the week. U.S. gold futures were steady at $1,294.20 an ounce.
Treasuries Recap
The 10-year U.S. Treasury yields were up about 2.5 basis points, hitting a two-week high of 2.538 percent, and were set for its biggest weekly rise this year.
The government bond yields in Europe rose, with the German 10-year Bund yield, the benchmark for the euro zone, rising into positive territory and was up 2 bps at 0.018 percent.
The Japanese government bond prices dipped slightly, with the benchmark 10-year JGB yield rising one basis point to minus 0.035 percent. The 20-year yield gained 1.0 basis point, to 0.370 percent, while the 30-year yield advanced half a basis point to 0.535 percent. Ten-year JGB futures dipped 0.10 point to 152.73.