News

America's Roundup: Dollar edges up, sterling falls, S&P 500 slips, Gold falls 1 pct, Oil mixed as OPEC pushes supply cut need, demand fears weigh-March 15th,2019

Market Roundup

• British lawmakers overwhelmingly back Brexit delay

• U.S.-China trade talks progressing quickly – Trump, Mnuchin

• BoE's Haskel wants inflation clarity before backing rate hike-FT

• US Feb Import Prices MM, 0.6%, 0.3% forecast, -0.5% previous, 0.1% revised

• US Feb Export Prices MM, 0.6%, 0.1% forecast, -0.6% previous, -0.5% revised

• US 9 Mar, w/e Initial Jobless Claims, 229k, 225k forecast, 223k previous

• US Jan New Home Sales-Units, 0.607 mln, 0.620 mln previous, 0.621 mln, 0.652 mln revised

• Canada  Jan New Housing Price Index, -0.1%, 0.0% forecast, 0.0% previous

• Argentina's planned $9.6 bln sale of dollars will bolster peso

Looking Ahead – Economic Data (GMT)

• 14 Mar 21:30 New Zealand Feb Manufacturing PMI, 53.1 previous

• 15 Mar 01:30 Feb China House Prices YY, 10.0% previous

• 15 Mar N/A Japan BOJ Rate Decision, -0.10% forecast, -0.10% previous

Looking Ahead – Events, Other Releases (GMT)

• 08:55 Remarks by Bank of Japan Governor Haruhiko Kuroda at the B20 Tokyo Summit

• 09:00 Finnish central bank chief Olli Rehn will brief the press on monetary policy and the global economy in Helsinki

• 02:30 Bank of Japan Governor Haruhiko Kuroda speaks to reporters at the end of the central bank policy meeting in Tokyo 

• 15:40 Michael Held, Bank of England executive vice president, is a panelist at the Ethics by Design Conference 2019 in New York

Currency Summaries

EUR/USD: The euro slipped lower against the U.S. dollar on Thursday, as dollar gained, largely helped by the pound snapping back after a sharp rally made on Brexit relief. The greenback had taken a knock as the pound jumped more than 2 percent after British lawmakers voted against a potentially disorderly “no-deal” departure from the European Union.On the data front, The number of Americans filing for unemployment benefits increased more than expected last week, suggesting the labor market was slowing, but probably not to the extent implied by a near-stall in job growth in February. The dollar index, a gauge of its strength against six other major currencies, was up 0.31 percent at 96.77. Immediate resistance can be seen at 1.1308 (50% retracement level), an upside break can trigger rise towards 1.1369 (61.8% retracement level).On the downside, immediate support is seen at 1.1246 (38.2% retracement level), a break below could take the pair towards 1.1200 (Psychological level).

GBP/USD: Sterling retreated on against dollar on Thursday, as investors prepared for Prime Minister Theresa May to try again to win approval for her Brexit deal, after lawmakers voted overwhelmingly to seek a delay to the United Kingdom's exit from the European Union. May will now renew efforts to get her twice-rejected divorce deal approved next week by Britain's parliament. She is piling pressure on rebel lawmakers to back her by threatening a longer delay if they vote against her. Sterling was down 0.12 percent at $1.3254 by 2114 GMT. The pound on Wednesday enjoyed its biggest one-day gain against the dollar since last April after UK lawmakers resoundingly voted to reject a no-deal Brexit. Immediate resistance can be seen at 1.3330 (Daily High), an upside break can trigger rise towards 1.3375  (38.2% retracement level).On the downside, immediate support is seen at 1.3207 (61.8% Retracement level), a break below could take the pair towards 1.3095 (March 5th low).

USD/CAD: The Canadian dollar weakened against the greenback on Thursday, as Canadian dollar was weighed down by weak Chinese data and worries about the uncertain outcome of U.S.-China trade talks. Growth in China's industrial output fell to a 17-year low in the first two months of the year and the jobless rate rose, reflecting further weakness in the world's second-biggest economy. The trade talks and global economic growth also weighed on the price of oil, one of Canada's major exports. Still, U.S. crude oil futures settled 0.6 percent higher at $58.61 a barrel. At (1944 GMT), the Canadian dollar  was trading 0.2 percent lower at 1.3323 to the greenback. Immediate resistance can be seen at 1.3356 (50% retracement level), an upside break can trigger rise towards 1.3430 (61.8% retracement level).On the downside, immediate support is seen at 1.3288 (38.2% retracement level), a break below could take the pair towards 1.3200 (23.6% retracement level).

USD/JPY: The dollar gained against Japanese yen on Thursday, as risk appetite rose on hopes of a trade deal between the United States and China would be reached soon.U.S. President Donald Trump and Treasury Secretary Steven Mnuchin's discussions with China to end a months-long trade war are progressing quickly, though Trump said he could not say whether a final deal would be reached. He and Chinese President Xi Jinping had been expected to hold a summit in Florida this month, but no date has been set. The dollar was 0.02 higher versus the Japanese yen at 111.66.Strong resistance can be seen at 111.82 (23.6% retracement level), an upside break can trigger rise towards 112.12 (March 5th high).On the downside, immediate support is seen at 111.55 (38.2% retracement level), a break below could take the pair towards 111.33 (50% retracement level). 

Equities Recap

European shares rose to a five-month high on Thursday, boosted by strength in the banking sector after Britain's parliament voted to reject a disorderly Brexit.

UK's benchmark FTSE 100 closed up by 0.42 percent, the pan-European FTSEurofirst 300 ended the day up by 0.68 percent, Germany's Dax ended up by 0.20 percent, France’s CAC finished the day up by 0.86 percent.

The S&P 500 slipped on Thursday, snapping a three-day streak of gains, as uncertainty over when a trade deal between the United States and China would be reached left investors on edge.

Dow Jones closed upby 0.04 percent, S&P 500 ended down by 0.08 percent, Nasdaq finished the down down by 0.16 percent.

Treasuries Recap

U.S. Treasury prices dropped on Thursday in quiet trading overall, with the sharpest falls seen on the long end of the curve, pressured by corporate debt supply and some selling from Japanese investors ahead of Japan's fiscal year end this month.

In afternoon trading, U.S. 10-year note prices fell, as yields rose to 2.628 percent from 2.610 percent late on Wednesday.

U.S. 30-year bond yields were up at 3.044 percent from 3.01 percent on Wednesday.On the short end, U.S. 2-year yields advanced to 2.462 percent, compared with Wednesday's 2.453 percent.

Commodities Recap

Gold fell more than 1 percent on Thursday, slipping below $1,300 for a second time this month, as fears of a “no-deal” Brexit faded and the dollar gained versus the pound ahead of a vote to extend the deadline for Britain's exit from the European Union.

Spot gold was down 1 percent at $1,296.38 per ounce as of (2122 GMT), retreating from $1,311.07 reached on Wednesday, its highest since March 1.

Oil prices steadied on Thursday after hitting 2019 highs as OPEC built its case to extend its production cut program past June while lowering its forecast for crude demand.

Brent crude hit a four-month peak of $68.14 per barrel before settling at $67.23, down 32 cents from Wednesday's close.U.S. West Texas Intermediate crude futures settled at $58.61 a barrel, up 35 cents.
 


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