Market Roundup
• US Markit Mfg PMI flash misses 50.8 vs 52 forecast, 51.5-pvs; Mfg output lowest since Oct ’09, employment lowest since Jun ’13.
• Canada annual inflation cools in March (1.3% vs1.4% previous) as gasoline weighs.
• BoE’s Vlieghe: rates could go negative in theory, BoE ready to act in Brexit outcome, economy holding up for now.
• Sterling hits 4-week high (intraday) at 1.4453, as odds swing against Brexit.
• Yen tumbles on renewed BOJ rate cut talk, USD hits 3-wk high vs JPY.|
• EU, US should secure trade deal this year (US negotiator).
• Disappointing earnings from U.S. blue chips weigh on markets.
• Greek agreement with creditors 'getting closer' (AP).
• Mexican 1st half month inflation 2.60%, remains below Banxico 3% target; core 2.79%.
Looking Ahead - Economic Data (GMT)
• No Significant Data
Looking Ahead - Events, Other Releases (GMT)
• No Significant Events
Currency Summaries
EUR/USD is likely to find support at 1.1200 levels and currently trading at 1.1232 levels. The pair has made session high at 1.1236 and hit lows at 1.1216 levels. The dollar rose sharply against euro on Friday as risk appetite increased in the market and crude oil pricces rallied, indicated that the Federal Reserve may raise interest rates in the next meeting. The euro was last down 0.52 percent against the dollar at $1.1225 after hitting a more than three-week low of $1.1219 in the wake of a worse than expected German purchasing managers' index (PMI) survey. The euro was set for its second straight weekly drop against the dollar. Meanwhile, The Federal Reserve meets next week and healthy markets and reassuring data over the past month have left many investors wondering whether they might have been too quick in pricing out an increase in U.S. rates this year.
GBP/USD is supported in the range of 1.4371 currently trading at 1.4422 levels. It reached session high at 1.4453 and hit low at 1.4371 levels. Sterling rose against the dollar to a one-month high on Friday, as the pair was boosted by a swing of betting odds and polls towards the campaign for Britain to remain in the European Union as U.S. President Barack Obama waded into the debate. The cable fell from 1.4450 in early US session towards 1.4371 levels but recovered back towards 1.4422. Sterling rose by 0.8 percent against the dollar to $1.4453 and 1 percent to a four-week high against the euro of 77.95 pence per euro. Sterling has fallen roughly 10 percent since the referendum began to filter into market pricing in November and some major banks earlier warned of a crisis for sterling that would drive it to as low as $1.20 if Britain votes to leave.
USD/CAD is supported at 1.2600 levels and is trading at 1.2665 levels. It has made session high at 1.2715 and lows at 1.2620 levels. The Canadian dollar rose against US dollar on Friday after better-than-expected domestic data and as oil prices rose. The Canadian retail sales unexpectedly climbed in February after economists has expected a drop, while core inflation was more robust than expected in March, climbing 0.4 percent on higher motor vehicle and parts sales, data from Statistics Canada showed. Oil prices rose and notched their third straight week of gains amid upbeat sentiment over the supply glut. The currency's strongest level of the session was C$1.2641, while its weakest level was C$1.2758. The loonie made a nine-month high on Wednesday at C$1.2593.
USD/JPY is supported around 111.00 levels and currently trading at 111.76 levels. It hit session high at 111.80 and made session lows at 111.40 levels. US dollar rose against Japanese yen on Friday on a report of likely further monetary policy easing from the Bank of Japan, while a rise in crude oil prices was offset by poor technology sector earnings, leaving Wall Street stocks steady.The dollar rose more than 2.0 percent against the yen to 111.80 yen, its highest level since April 1 afte The U.S. futures contract for June delivery GCv1 settled down 1.6 percent at $1,230 an ounce r a media report said the BOJ is considering expanding its negative rate policy to bank loans and could cut rates further.
Equities Recap
European shares fell on Friday as automaker Daimler reported disappointing results and said it would investigate its U.S. emissions certification process.
UK's benchmark FTSE 100 closed down 1.2 percent, the pan-European FTSEurofirst 300 ended the day down by 0.50 percent, Germany's DAX ended down by 0.7 percent, France’s CAC finished the day down by 0. 4 percent.
Wall Street finished flat on Friday after disappointing quarterly reports from Microsoft and Alphabet slammed tech stocks, while a surge in oil prices lifted energy shares.
Dow Jones closed up by 0.12 percent, S&P 500 ended up by 0.01 percent, Nasdaq finished the day down by 0.80 percent.
Treasuries Recap
U.S. Treasury yields rose to three-week highs on Friday as investors prepared for the possibility that the Federal Reserve will hint next week that an interest rate hike is on the table for June.
Benchmark 10-year notes fell 5/32 in price to yield 1.89 percent, up from 1.87 percent on Thursday
Commodities Recap
Gold fell more than 1 percent on Friday as the dollar advanced versus the yen and the euro, putting the metal on track to post its second straight weekly loss, while silver was set for its third consecutive weekly rise.
Gold was down 1.3 percent at $1,232.66 an ounce at 3:21 p.m. EDT (1921 GMT), below Thursday's five-week high of $1,270.10 an ounce.
Oil prices rose on Friday and notched their third straight week of gains as market sentiment turned more upbeat amid signs a persistent global supply glut may be easing.
Brent futures ended the session up 1.3 percent at $45.11 per barrel, while U.S. West Texas Intermediate crude settled up 1.3 percent at $43.73 a barrel. Both contracts jumped as much as 3 percent during the session.
