Posted at 06 May 2019 / Categories Market Roundups
Market Roundup
Economic Data Ahead
Key Events Ahead
FX Beat
DXY: The dollar index gained after Trump vowed tariff hike on Chinese goods. The greenback against a basket of currencies traded 0.1 percent up at 97.60, having touched a high of 98.10 on Friday, its highest since April 26. FxWirePro's Hourly Dollar Strength Index stood at -85.21 (Slightly Bearish) by 0500 GMT.
EUR/USD: The euro declined after Bundesbank President Jens Weidmann expressed scepticism about a proposal to grant banks some relief from negative central bank rates, arguing that cost could outweigh the benefits. The European currency traded 0.1 percent down at 1.1188, having touched a low of 1.1135 on Friday, its lowest since Apr. 26. FxWirePro's Hourly Euro Strength Index stood at -44.99 (Neutral) by 0500 GMT. Investors’ attention will remain on a series of data out of Eurozone economies and EZ retail sales, amid a lack of data from the U.S. docket. Immediate resistance is located at 1.1229 (April 30 high), a break above targets 1.1262 (April 22 High). On the downside, support is seen at 1.1140 (April 24 Low) a break below could drag it till 1.1096 (May. 2017 Low).
USD/JPY: The dollar plunged below the 111.00 handle to hit a 4-1/2 week low, after U.S. President Donald Trump threatened to raise tariffs on China and Beijing considering cancelling talks planned for this week, triggering risk-off sentiment. The major was trading 0.3 percent down at 110.80, having hit a low of 110.28 earlier, its lowest since Mar. 28. FxWirePro's Hourly Yen Strength Index stood at 56.02 (Bullish) by 0500 GMT. Investors’ will continue to track the broad-based market sentiment, as U.S. economic calendar remains absolutely data empty. Immediate resistance is located at 111.07 (Feb. 27 High), a break above targets 111.46 (Mar. 12 High). On the downside, support is seen at 110.01 (Mar.28 Low), a break below could take it lower at 109.70 (Mar. 25 Low).
GBP/USD: Sterling tumbled amid persisting uncertainty surrounding Britain's departure from the European Union. On Friday, the pair rose to a 1-month peak after the leader of Britain's opposition party said parliament must break the deadlock over Brexit and get a deal through to exit the European Union. The major traded at 0.4 percent down 1.3122, having hit a high of 1.3176 on Friday; it’s highest since Apr. 4. FxWirePro's Hourly Sterling Strength Index stood at 143.83 (Highly Bullish) 0500 GMT. Immediate resistance is located at 1.3223 (Mar. 22 High), a break above could take it near 1.3269 (Mar. 29 High). On the downside, support is seen at 1.3080 (Mar. 22 Low), a break below targets 1.3022 (Apr. 8 Low). Against the euro, the pound was trading 0.3 percent down at 85.22 pence, having hit a high of 84.88, it’s highest since Mar. 27.
AUD/USD: The Australian dollar declined to a 4-month low after Trump on Sunday increased pressure on China to reach a trade deal by announcing he would hike U.S. tariffs on $200 billion worth of Chinese goods this week and target hundreds of billions more soon. The Aussie trades 0.5 percent down at 0.6984, having hit a low of 0.6962 earlier; it’s lowest since Jan. 3. FxWirePro's Hourly Aussie Strength Index stood at -138.74 (Highly Bearish) by 0500 GMT. Immediate support is seen at 0.6950, a break below targets 0.6921. On the upside, resistance is located at 0.7026 (-DMA), a break above could take it near 0.7097 (Mar. 14 High).
NZD/USD: The New Zealand dollar eased to a near 2-week low on news that Beijing might cancel talks with their U.S. counterparts in Washington planned for Wednesday. The Kiwi trades 0.3 percent down at 0.6621, having touched a low of 0.6601 earlier, its lowest level Apr. 25. FxWirePro's Hourly Kiwi Strength Index was at -22.96 (Neutral) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6694 (Apr. 19 High), a break above could take it near 0.6758 (Apr. 9 High). On the downside, support is seen at 0.6562, a break below could drag it below 0.6514 (Nov. 1 Low).
Equities Recap
Asian shares slumped after U.S. President Donald Trump unexpectedly threatened China to reach a trade deal in the midst of negotiations.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 1.9 percent.
Australia's S&P/ASX 200 index declined 0.8 percent to 6,283.70 points, Shanghai composite index fell 5.6 percent to 2,906.46 points, while CSI 300 index traded 5.8 percent down at 3,684.62 points.
Hong Kong’s Hang Seng traded 3.3 percent lower at 29,087.71 points. Taiwan shares shed 1.8 percent to 10,897.12 points
Commodities Recap
Crude oil prices slumped by more than 2 percent after U.S. President Donald Trump on Sunday said he would sharply hike tariffs on Chinese goods this week. International benchmark Brent crude was trading 2.1 percent lower at $69.30 per barrel by 0443 GMT, having hit a low of $68.82 earlier, its lowest since Apr, 3. U.S. West Texas Intermediate was trading 2.2 percent down at $60.50 a barrel, after falling as low as $60.02 earlier, its lowest since the Mar, 29.
Gold prices surged after U.S. President Donald Trump threatened to raise tariffs on Chinese goods, escalating Sino-U.S. trade tensions, which prompted risk-off sentiment. Spot gold was trading 0.3 percent up at $1,282.69 per ounce by 0447 GMT, having touched a high of $1,285.73 earlier, its highest since May 1. U.S. gold futures were up 0.2 percent at $1,283.90 an ounce.
Treasuries Recap
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, plunged 5 basis points to 1.742 percent, the yield on the long-term 30-year bond slumped nearly 5-1/2 basis points to 2.362 percent and the yield on short-term 2-year traded nearly 3-1/2 basis points lower at 1.299 percent.