Posted at 15 May 2019 / Categories Market Roundups
Market Roundup
Economic Data Ahead
Key Events Ahead
FX Beat
DXY: The dollar index gained as investors focus shifted on U.S. retail sales and industrial production for April due later in the day for pointers on the state of the global economy. The greenback against a basket of currencies traded 0.05 percent up at 97.54, having touched a low of 97.03 on Monday, its lowest since May 1. FxWirePro's Hourly Dollar Strength Index stood at -36.22 (Neutral) by 0500 GMT.
EUR/USD: The euro rose after falling to a 5-day low in the prior session after Italy’s deputy prime minister said the country is ready to break European Union budget rules on debt levels if necessary to support employment. The European currency traded 0.1 percent up at 1.1209, having touched a high of 1.1263 on Monday, its highest since May 1. FxWirePro's Hourly Euro Strength Index stood at 136.98 (Highly Bullish) by 0500 GMT. Investors’ attention will remain on a series of data from the Eurozone economies, and EZ prelim gross domestic product and employment change, ahead of the U.S. retail sales, industrial production, capacity utilization, housing market index and a speech by Fed's Quarles. Immediate resistance is located at 1.1262 (April 22 High), a break above targets 1.1304 (April 18 High). On the downside, support is seen at 1.1187 (May 1 Low) a break below could drag it till 1.1140 (April 24 Low).
USD/JPY: The dollar edged higher, extending previous session rebound after U.S. President Donald Trump insisted that trade talks with China had not collapsed. However, concerns about economic growth following the weaker-than-expected Chinese limited upside. The major was trading 0.1 percent up at 109.67, having hit a low of 109.01 on Monday, its lowest since Feb. 1. FxWirePro's Hourly Yen Strength Index stood at -32.31 (Neutral) by 0500 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. retail sales, industrial production, capacity utilization, housing market index and a speech by Fed's Quarles. Immediate resistance is located at 110.04 (38.2% retracement of 111.68 and 109.01), a break above targets 110.67 (61.8% retracement). On the downside, support is seen at 109.01 (May 14 Low), a break below could take it lower at 108.49 (Jan. 31 Low).
GBP/USD: Sterling rebounded from a near 3-week low on news that British Prime Minister Theresa May will launch another push next month to approve Britain's exit from the European Union before the summer break, setting a new deadline for her Brexit. The major traded 0.1 percent up at 1.2912, having hit a low of 1.2896 on Tuesday; it’s lowest since Apr. 26. FxWirePro's Hourly Sterling Strength Index stood at -90.38 (Slightly Bearish) 0500 GMT. Immediate resistance is located at 1.2963 (Apr. 24 High), a break above could take it near 1.3049 (Apr. 30 High). On the downside, support is seen at 1.2865 (Feb. 7 Low), a break below targets 1.2854 (Apr. 25 Low). Against the euro, the pound was trading 0.05 percent down at 86.83 pence, having hit a low of 86.91 on Tuesday, it’s lowest since Mar. 21.
AUD/USD: The Australian dollar plunged to a 4-1/2 month low after data showed pace of growth in domestic wages stagnated last quarter, adding to evidence that exceptional strength in the labour market is not enough to boost pay rewards, consumer spending and inflation. The Aussie trades 0.2 percent down at 0.6930, having hit a low of 0.6922 earlier, it’s lowest since Jan. 3. FxWirePro's Hourly Aussie Strength Index stood at -85.68 (Slightly Bearish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.6900, a break below targets 0.6875. On the upside, resistance is located at 0.6997 (May 9 High), a break above could take it near 0.7069 (Apr. 30 High).
NZD/USD: The New Zealand dollar declined after China reported surprisingly weaker growth in retail sales and industrial output for April, adding pressure on Beijing to roll out more stimulus amid escalating trade war with the United States. The Kiwi trades 0.1 percent down at 0.6565, having touched a low of 0.6525 last week, its lowest level Nov. 1. FxWirePro's Hourly Kiwi Strength Index was at -7.52 (Neutral) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6653 (May 3 High), a break above could take it near 0.6694 (Apr. 19 High). On the downside, support is seen at 0.6514 (Nov. 1 Low), a break below could drag it below 0.6474 (Oct. 4 Low).
Equities Recap
Asian shares rebounded from a 3-1/2-month low as a slight softening in rhetoric from U.S. President Donald Trump eased worries about the U.S.-China tariff war.
MSCI's broadest index of Asia-Pacific shares outside Japan jumped 0.5 percent.
Tokyo's Nikkei rallied 0.6 percent to 21,188.56 points, Australia's S&P/ASX 200 index climbed 0.7 percent to 6,284.20 points and South Korea's KOSPI surged 0.5 percent to 2,092.78 points.
Shanghai composite index rose 1.8 percent to 2,937.23 points, while CSI 300 index traded 2.2 percent up at 3,726.38 points.
Hong Kong’s Hang Seng traded 0.9 percent higher at 28,376.84 points. Taiwan shares added 0.4 percent to 10,560.71 points
Commodities Recap
Crude oil prices surged, supported by mounting tensions in the Middle East, however, a surprise rise in U.S. crude stockpiles limited upside. International benchmark Brent crude was trading 0.1 percent higher at $70.96 per barrel by 0503 GMT, having hit a high of $72.56 on Monday, its highest since Apr, 30. U.S. West Texas Intermediate was trading 0.05 percent up at $61.35 a barrel, after rising as high as $63.32 on Monday, its highest since the May 2.
Gold prices declined, retreating from a 1-month peak hit in the previous session as optimism surrounding trade talks between Washington and Beijing boosted investor risk-sentiment. Spot gold fell 0.1 percent to $1,294.82 per ounce by 0508 GMT, having touched a high of $1,303.21 on Monday, its highest since Apr. 11. U.S. gold futures were steady at $1,296.10 an ounce.
Treasuries Recap
The Japanese government bond prices were little changed, with the benchmark 10-year JGB futures ticking up 0.02 points to 152.76, while the 10-year JGB yield was unchanged at minus 0.055 percent.
The yields on Australian three-year bonds were under the cash rate at 1.235 percent and only just above all-time lows.
The New Zealand government bonds eased back a little with yields up 1 to 2 basis points.
The Canadian government bond prices were lower across a steeper yield curve, with the two-year down 4.5 Canadian cents to yield 1.60 percent and the 10-year falling 30 Canadian cents to yield 1.697 percent. The gap between Canada's 2-year yield and its U.S. equivalent narrowed by 0.9 basis points to a spread of 60 basis points in favor of the U.S. bond, its narrowest gap since Nov. 28.