America’s Roundup: Dollar surges to highest since January 2017, Wall Street ends higher, Gold drops, U.S. oil reverses losses, posts largest one-day gain on record-March 20th,2020

Market Roundup

• US Continuing Jobless Claims 1,701K, 1,725K forecast, 1,699K  previous

• US Current Account (Q4) -109.8B, -109.0B forecast, -125.4B previous

• US Initial Jobless Claims 281K, 220K forecast, 211K previous

• US Jobless Claims 4-Week Avg    232.25K, 215.75K previous

• US March Philadelphia Fed Manufacturing Index -12.7, 10.0 fprecast, 36.7 previous

• US March Philly Fed Business Conditions 35.2,45.4 previous

• US March Philly Fed Employment  4.1, 9.8 previous

 • Canada ADP Nonfarm Employment Change 7.2K, 25.9K previous

• Canada Feb New Housing Price Index (MoM)  0.4%,0.1% forecast, 0.0%  previous

• Russia  Central Bank Reserves (USD) 581.0B, 577.8B previous

• US Feb Leading Index (MoM)  0.1%,0.1% forecast, 0.7%  previous

Looking Ahead – Economic Data (GMT)    

• 01:30 China PBoC Loan Prime Rate 4.05% previous    

• 02:00   New Zealand Credit Card Spending (YoY) 3.7% previous  
Currency Summaries

EUR/USD: The euro plunged to its lowest level in three years against dollar on Thursday as demand for dollar funding stayed high despite the recent burst of liquidity injection operations undertaken by central banks around the world. In volatile trading the euro fell 1.6% to $1.0651 per dollar, its lowest since April 2017, as traders rushed to dump euro positions despite a fresh round of stimulus from the European Central Bank. Immediate resistance can be seen at 1.0728 (23.6% fib), an upside break can trigger rise towards 1.0776 (38.2% fib). On the downside, immediate support is seen at 1.0657 (Daily low), a break below could take the pair towards 1.0591 (Lower BB).

GBP/USD: The British pound declined sharply against the U.S. dollar on Thursday, as the coronavirus pandemic sunk the cable to its lowest level since 1985 as investors rushed to hold U.S. dollars. Sterling has been one of several currencies to tank as investors rush to put their money in dollars, the world’s most liquid currency and seen as a safe haven in times of crisis. The British currency has fallen around 12% against the dollar over eight brutal days of trading. Immediate resistance can be seen at 1.1557 (Daily high), an upside break can trigger rise towards 1.1678 (50 % fib).On the downside, immediate support is seen at 1.1444 (23.6% fib), a break below could take the pair towards 1.1400 (Psychological level).

USD/CAD: The Canadian dollar rose against its broadly stronger U.S. counterpart on Thursday as oil rallied and central banks tried to contain economic damage from the coronavirus pandemic, with the loonie recovering from an earlier four-year low. The price of oil, one of Canada's major exports, rebounded after a three-day selloff sparked by the spread of the coronavirus and a market share battle between Saudi Arabia and Russia drove it to its lowest in almost two decades. At (2117 GMT), the Canadian dollar was last trading 0.4% higher at 1.4498 to the greenback. Immediate resistance can be seen at 1.4573 (38.2% fib), an upside break can trigger rise towards 1.4672 (23.6% fib) On the downside, immediate support is seen at 1.4427 (19th March low), a break below could take the pair towards 1.4355 (5 DMA).

USD/JPY: The dollar gained against the Japanese yen on Thursday, as worries about the economic fallout from the coronavirus boosted dollar demand despite recent steps by world central banks aimed at alleviating market stress. Though global central banks have pumped in billions of dollars in emergency liquidity injections in recent days and strengthened swap lines with some global central banks, dollar funding pressures remained exacerbated across the board.The dollar index, which measures the greenback’s strength against a basket of six other major currencies, rose 2.0% to 102.73, its highest level since January 2017. The index is up about 4% for the week. Strong resistance can be seen at 110.06 (Daily high), an upside break can trigger rise towards 110.48 (27th Feb high).On the downside, immediate support is seen at 110.48 (38.2% fib ), a break below could take the pair towards 109.98 (50% fib). 

Equities Recap

European shares rose on Thursday  as investors counted on further monetary stimulus by central banks after the U.S. Federal Reserve cut interest rates in an emergency move to cushion the economic impact of the coronavirus epidemic.

 UK's benchmark FTSE 100 closed up by 1.40 percent, Germany's Dax ended up by 2.00 percent, France’s CAC finished the day up by 2.68 percent.        

U.S. stocks managed to post gains on Thursday after recent steep losses as policymakers around the world took further emergency actions to try to help financial markets cope with deep coronavirus-driven economic damage.

Dow Jones closed up by 0.95 percent, S&P 500 closed down by 0.46 percent, Nasdaq settled down   by 2.30percent.

Treasuries Recap

U.S. Treasury yields largely fell in volatile trading on Thursday as investors hurried to minimize risk in the face of the coronavirus pandemic, and the Fed poured liquidity into the financial system.

The yield on the benchmark 10-year U.S. Treasury note  was at 1.1256%, down 13.2 basis points for the session.

Commodities Recap

Gold prices slipped on Thursday as the dollar jumped to multi-year highs, with the coronavirus pandemic threatening to cripple economic activity and prompting investors to sell assets to keep their money in cash.

Spot gold was down 0.6% at $1,477.07 per ounce by 12:53 p.m. EDT (1653 GMT), while U.S. gold futures were up 0.2% at $1,479.80.

U.S. crude oil prices spiked by 25% on Thursday, the largest single-day gain on record, recouping some losses from three days of selling that drove the benchmark to near 20-year lows.

West Texas Intermediate (WTI) crude   settled up $4.85, or 24%, to $25.22 after dropping nearly 25% to an 18-year low in the previous session.

Brent crude   settled up $3.59, or 14.4%, at $28.47 a barrel, having plunged to $24.52 on Wednesday, its lowest since 2003.

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