Forex signals news and analysis, fundamental stock market breakdown including geopolitical analysis and in depth discussion. Up to date live news feed from around the world, stock market specific.
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Tuesday, 31 March 2020
US Dollar Fundamental Outlook: USD/SGD, USD/MYR, USD/IDR, USD/PHP
China Manufacturing PMI 52.0 In March
The manufacturing sector in China moved back into expansion in March, the latest survey from the National Bureau of Statistics said on Tuesday with a manufacturing PMI score of 52.0 - beating forecasts for 45.0.
That's up sharply from 35.7 in February, and it moves back above the boom-or-bust line of 50 that separates expansion from contraction.
The non-manufacturing PMI came in at 52.3, also exceeding expectations for 42.0 and up from 29.6 in the previous month.
The composite PMI posted a score of 53.0, up from 28.9 a month prior.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154395/
*China Manufacturing PMI 52.0 In March; Non-manufacturing PMI 52.3
China Manufacturing PMI 52.0 In March; Non-manufacturing PMI 52.3
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154394/
Japan Industrial Output Gains 0.4% In February
Industrial production in Japan advanced a seasonally adjusted 0.4 percent on month in February, the Ministry of Economy, Trade and Industry said in Tuesday's preliminary reading.
That beat forecasts for a flat reading following the 1.0 percent increase in January.
On a yearly basis, industrial production fell 4.7 percent - but that also beat expectations for a drop of 4.8 percent following the 2.3 percent decline in the previous month.
Upon the release the data, the METI revised its assessment of industrial production - saying that it fluctuates indecisively but has weakened.
Shipments were up 2.6 percent on month and down 4.7 percent on year, while inventories fell 2.0 percent on month and gained 1.4 percent on year. The inventory ratio sank 2.5 percent on month but jumped 8.6 percent on year.
According to the METI's forecast for industrial production, output is expected to sink a seasonally adjusted 5.3 percent on month in March and rebound 7.5 percent higher in April.
Also on Tuesday: . The unemployment rate in Japan came in at a seasonally adjusted 2.4 percent in February, the Ministry of Communications and Internal Affairs said. That was in line with expectations and unchanged from the previous month.
The job-to-applicant ratio was 1.45, shy of expectations for 1.47 and down from 1.49 in January.
The number of employed persons in February was 66.91 million, an increase of 350,000 from the previous year. The number of unemployed persons in February was 1.59 million, an increase of 30,000 from the previous year.
. Retail sales in Japan gained a seasonally adjusted 0.6 percent on month in February, the Ministry of Economy, Trade and Industry said. That beat forecasts for a decline of 1.7 percent following the 1.5 percent increase in January.
On a yearly basis, retail sales gained 1.7 percent - again exceeding expectations for a decline of 1.5 percent following the 0.4 percent drop in the previous month.
Large retailer sales added 0.2 percent on year, topping forecasts for a decline of 1.6 percent following the 1.5 percent decline a month earlier.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154392/
Australia Private Sector Credit Gains 0.3% In February
Private sector credit in Australia was up 0.3 percent on month in February, the Reserve Bank of Australia said on Tuesday - unchanged from the previous month and in line with expectations.
On a yearly basis, credit was up 2.8 percent - exceeding forecasts for 2.6 percent and up from 2.5 percent in January.
Housing credit was up 0.3 percent on month and 3.2 percent on year, while personal credit fell 0.5 percent on month and 5.3 percent on year and business credit rose 0.9 percent on month and 3.5 percent on year.
Broad money gained 0.4 percent on month and 4.1 percent on year.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154393/
*Australia Private Sector Credit +0.4% On Month, +2.8% On Year In February
Australia Private Sector Credit +0.4% On Month, +2.8% On Year In February
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154391/
Japan Retail Sales Climb 0.6% In February
Retail sales in Japan gained a seasonally adjusted 0.6 percent on month in February, the Ministry of Economy, Trade and Industry said on Tuesday.
That beat forecasts for a decline of 1.7 percent following the 1.5 percent increase in January.
On a yearly basis, retail sales gained 1.7 percent - again exceeding expectations for a decline of 1.5 percent following the 0.4 percent drop in the previous month.
Large retailer sales added 0.2 percent on year, topping forecasts for a decline of 1.6 percent following the 1.5 percent decline a month earlier.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154390/
Japan Industrial Production Rises 0.4% In February
Industrial output in Japan was up a seasonally adjusted 0.4 percent on month in February, the Ministry of Economy, Trade and Industry said in Tuesday's preliminary reading.
That beat forecasts for a flat reading following the 1.0 percent increase in January.
On a yearly basis, industrial production fell 4.7 percent - but that also beat expectations for a drop of 4.8 percent following the 2.3 percent decline in the previous month.
Upon the release the data, the METI revised its assessment of industrial production - saying that it fluctuates indecisively but has weakened.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154389/
*Japan Retail Sales +0.6% On Month, +1.7% On Year In February
Japan Retail Sales +0.6% On Month, +1.7% On Year In February
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154388/
*Japan Industrial Production +0.4% On Month, -4.7% On Year In February
Japan Industrial Production +0.4% On Month, -4.7% On Year In February
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154387/
Japan Jobless Rate Holds Steady At 2.4%
The unemployment rate in Japan came in at a seasonally adjusted 2.4 percent in February, the Ministry of Communications and Internal Affairs said on Tuesday.
That was in line with expectations and unchanged from the previous month.
The job-to-applicant ratio was 1.45, shy of expectations for 1.47 and down from 1.49 in January.
The number of employed persons in February was 66.91 million, an increase of 350,000 from the previous year. The number of unemployed persons in February was 1.59 million, an increase of 30,000 from the previous year.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154386/
South Korea Industrial Output Slides 3.8% In February
Industrial production in South Korea dropped a seasonally adjusted 3.8 percent on month in February, Statistics Korea said on Tuesday - following the 1.3 percent decline in January.
On a yearly basis, industrial production jumped 11.4 percent after sliding 2.6 percent in the previous month.
The index of all industry production sank 3.5 percent on month and gained 4.9 percent on year following the flat monthly reading and the 0.6 percent drop a month earlier.
The Manufacturing Production Index in February fell 4.1 percent on month but increased 12.0 percent on year. The Manufacturing Shipment Index lost 3.3 percent on month but increased 6.1 percent on year. The Manufacturing Inventory Index rose 0.2 percent on month and 3.8 percent on year.
The Production Capacity Index eased 0.1 percent on month but increased 1.1 percent on year. The Index of Capacity Utilization Rate sank 6.4 percent on month but increased 9.5 percent on year.
The Manufacturing Average Capacity Utilization Rate in February marked 70.7 percent, down 4.9 percentage points from the previous month. The Index of Services in February shed 3.5 percent on month but increased 1.2 percent on year.
The Retail Sales Index in February fell 6.0 percent on month and 2.3 percent on year. The Equipment Investment Index lost 4.8 percent on month but spiked 15.6 percent on year.
The Domestic Machinery Shipment Index jumped 10.0 percent on year, while the value of Domestic Machinery Orders Received surged an annual 22.2 percent.
In February, the value of Construction Completed at constant prices sank 3.4 percent on month but increased 5.6 percent on year. The value of Construction Orders Received at current prices soared an annual 28.5 percent.
The Composite Coincident Index in February eased 0.4 percent on month, while the Cyclical Component of Composite Coincident Index, which reflects current economic situations, fell 0.7 points from the previous month.
The Composite Leading Index in February rose 0.3 percent on month, while the Cyclical Component of Composite Leading Index, which predicts the turning point in business cycle, showed no change from the previous month.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154385/
*Japan Unemployment Rate 2.4% In February
Japan Unemployment Rate 2.4% In February
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154384/
South Korea Industrial Production Sinks 3.8% In February
Industrial production in South Korea was down a seasonally adjusted 3.8 percent on month in February, Statistics Korea said on Tuesday - following the 1.3 percent decline in January.
On a yearly basis, industrial production jumped 11.4 percent after sliding 2.6 percent in the previous month.
The index of all industry production sank 3.5 percent on month and gained 4.9 percent on year following the flat monthly reading and the 0.6 percent drop a month earlier.
The Manufacturing Production Index in February decreased by 4.1 percent from the previous month but increased by 12.0 percent from the same period of the previous year.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154383/
*South Korea Industrial Production -3.8% On Month, +11.4% On Year In February
South Korea Industrial Production -3.8% On Month, +11.4% On Year In February
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154382/
New Zealand Building Approvals Rise 4.7% On Month In February
The total number of building approvals issued in New Zealand was up a seasonally adjusted 4.7 percent on month in February, Statistics New Zealand said on Tuesday - coming in at 3,285.
That follows the 2.0 percent decline in January.
Individually, permits were issued for 1,994 stand-alone houses, 831 townhouses, flats, and units, 234 apartments and 226 retirement village units.
On a yearly basis, approvals jumped 11.0 percent for a total of 37,882 over the 12-month period.
The annual value of non-residential building work consented was NZ$7.3 billion, up 2.3 percent from the February 2019 year.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154381/
China Manufacturing PMI Data Due On Tuesday
China will on Tuesday see March results for its manufacturing, non-manufacturing and composite PMIs, headlining a busy day for Asia-Pacific economic activity.
The manufacturing PMI is expected to see a score of 45.0, up from 35.7 in February. The non-manufacturing PMI is pegged at 42.0, up from 29.6.
Japan will see February figures for retail sales, unemployment, industrial production housing starts and construction orders.
Retail sales are expected to sink 1.5 percent on month and 1.5 percent on year after adding 0.6 percent on month and falling 0.4 percent on year in January. The jobless rate is called steady at 2.4 percent, while the job-to-applicant ratio is expected to slip to 1.47 from 1.49.
Industrial production is called flat on month and down 4.9 percent on year after adding 1.0 percent on month and falling 2.3 percent on year in the previous month. Housing starts are predicted to slide 14.7 percent on year after dropping 10.1 percent a month earlier. Construction orders plunged an annual 17.0 percent in January.
Australia will see February numbers for private sector credit, with forecasts suggesting an increase of 0.3 percent on month and 2.6 percent on year after gaining 0.3 percent on month and 2.5 percent on year in January.
Australia will see February figures for building permits and March results for the business confidence and activity outlook indexes from ANZ. Permits were down 2.0 percent on month in January, while the business confidence index saw a score of -19.4 in February and the activity outlook was at +12.0.
Hong Kong will provide Q4 data for its current account. In the three months prior, the current account saw a surplus of HKD74.45 billion, while the financial account had a deficit of HKD103.64 billion and the capital account was a deficit of HKD 115 million.
Thailand will release February numbers for imports, exports, trade balance and current account. In January, imports were worth $19.28 billion and exports were at $19.67 billion for a trade surplus of $0.38 billion. The current account surplus was $3.44 billion.
South Korea will see February figures for industrial production and retail sales. In January, industrial production was down 1.3 percent on month and 2.4 percent on year, while retail sales fell 3.1 percent on month and gained 1.8 percent on year.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154380/
Dollar Scores Gains Against Major Currencies
The U.S. dollar firmed up against all major currencies on Monday with governments across the globe resorting to strict lock down rules, and working overtime to come out with steps including more monetary easing measures.
The dollar index rose to 99.32 this afternoon, and despite paring some gains subsequently, was still up 0.7% from previous close, at 99.03 around late afternoon.
Against the Euro, the dollar strengthened to $1.011 before giving up some ground. It was last seen at $1.1046, up 0.8% from previous close.
Against Pound Sterling, the dollar firmed up to $1.2392 from $1.2460 on Friday.
The yen moved in a very tight range around the flat line against the dollar and was at 107.89 at close, compared to 107.94 in the previous session.
The Loonie weakened to $1.4161 from Friday's 1.3985.
Against the Aussie, the dollar firmed up to 0.6133 from its previous close of 0.6168. The Swiss franc eased to 0.9573 a dollar from 0.9517 a dollar.
A report from the National Association of Realtors showed an unexpected jump in pending home sales in the month of February.
NAR said its pending home sales index surged up by 2.4% to 111.5 in February after spiking by 5.3% to an upwardly revised 108.9 in January. The continued increase surprised economists, who had expected pending home sales to pull back by 1%.
However, NAR chief economist Lawrence Yun noted the latest data does not capture the significant fallout from the coronavirus pandemic or the measures taken to control the outbreak.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154379/
Australian Dollar In Whipsaw Trade As China Manufacturing PMI Bounces Back
EUR/USD Rate Recovery Stalls as ECB Warns of Looming Recession
Canadian Dollar Sank with Crude Oil as Health Care Steered Wall Street
Oil Futures Decline Sharply, Settle At 18-year Low
Crude oil prices plunged sharply on Monday, pushing the front month contracts to their lowest close in more than 18 years.
Rising concerns about the outlook for energy demand due to businesses across the globe shutting down to prevent the spread of the novel coronavirus took a toll of oil prices.
Additionally, with large producers like Saudi Arabia and Russia not appearing keen on resorting to any meaningful output reductions, there is a possibility of a glut in the oil market.
West Texas Intermediate Crude oil futures for May ended down $1.42, or about 6.6%, at $20.09 a barrel, the lowest settlement since February 2002.
WTI crude oil futures dropped to a low of $19.27 a barrel during the session.
Brent crude futures declined more than 8.5% to settle at $22.76 per barrel, the lowest level in eighteen years.
The Bank of America has once again lowered its oil price forecasts. The bank said it expects to both contracts "temporarily trading in the teens in the coming weeks."
Energy demand is likely to drop substantially as it is now feared that the global coronavirus shutdown could last months.
British officials warned that normal life may not return to the U.K. for up to six months.
The White House on Sunday sent out a dire warning, saying that a total of 100,000 to 200,000 Americans could eventually succumb to the virus in a worst-case scenario in two weeks coinciding with Easter weekend.
U.S. President Donald Trump on Sunday extended national social distancing guidelines until at least April 30th.
Trump had previously hoped to reopen the country by Easter Sunday, on April 12th, but said he decided to extend the guidelines in an effort to keep the death toll from the coronavirus below 100,000.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154378/
Treasuries See Further Upside As Trump Extends Social Distancing Guidelines
Treasuries showed a notable advance during trading on Monday, extending the upward move seen over the two previous sessions.
Bond prices gave back some ground after an early move to the upside but remained firmly positive. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 7.9 basis points to 0.670 percent.
The continued strength among treasuries came after President Donald Trump extended national social distancing guidelines until at least April 30th.
Trump had previously hoped to reopen the country by Easter Sunday, on April 12th, but said he decided to extend the guidelines in an effort to keep the death toll from the coronavirus below 100,000.
The announcement by Trump on Sunday comes as data from Johns Hopkins University shows more than 153,000 confirmed coronavirus cases in the U.S. and more than 2,800 deaths.
Trump said during a press conference on Sunday that he expects the U.S. to be "well on our way to recovery" by June 1st.
News on the coronavirus front is likely to remain in focus throughout the week, although the Labor Department's monthly jobs report on Friday is still likely to attract attention.
Economists currently expect the report to show a loss of about 148,000 jobs in March, with the unemployment rate jumping to 3.9 percent from 3.5 percent.
The National Association of Realtors released a report this morning showing an unexpected jump in pending home sales in the month of February, pointing to a healthy housing market before the coronavirus-induced shutdown,
NAR said its pending home sales index surged up by 2.4 percent to 111.5 in February after spiking by 5.3 percent to an upwardly revised 108.9 in January. The continued increase surprised economists, who had expected pending home sales to pull back by 1.0 percent.
A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.
However, NAR chief economist Lawrence Yun noted the latest data does not capture the significant fallout from the coronavirus pandemic or the measures taken to control the outbreak.
Trading activity on Tuesday could be impacted by reports on consumer confidence and Chicago-area business activity in the month of March, although the data may be overshadowed by news on the coronavirus front.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154377/
Monday, 30 March 2020
*Spain Mar Flash HICP Rises 0.7% On Month Vs. -0.1% In February
Spain Mar Flash HICP Rises 0.7% On Month Vs. -0.1% In February
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154334/
*Spain Mar Flash HICP Up 0.2% Annually Vs. 0.9% In February
Spain Mar Flash HICP Up 0.2% Annually Vs. 0.9% In February
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154333/
*Spain Mar Flash CPI Falls 0.3% On Month Vs. -0.1% In February
Spain Mar Flash CPI Falls 0.3% On Month Vs. -0.1% In February
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154332/
*Amended: Spain Mar Flash Inflation 0.1% Vs. 0.7% In February
Amended: Spain Mar Flash Inflation 0.1% Vs. 0.7% In February
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154331/
*Pound Slides To 1.1791 Against Franc
Pound Slides To 1.1791 Against Franc
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154329/
*Pound Falls To 0.8979 Against Euro
Pound Falls To 0.8979 Against Euro
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154330/
*Pound Drops To 1.2333 Against U.S. Dollar
Pound Drops To 1.2333 Against U.S. Dollar
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154328/
Austria Producer Prices Decline For Ninth Month
Austria's producer prices continued to declined for the ninth month in a row in February, figures from Statistics Austria showed on Monday.
The producer price index declined 0.8 percent year-on-year in February, following a 0.3 percent fall in January.
The decline in producer prices was mainly driven by a fall in intermediate goods and energy prices by 1.7 percent and 3.3 percent, respectively.
Meanwhile, prices for capital goods rose 0.9 percent in February and those for consumer goods increased 2.2 percent.
On a monthly basis, producer prices fell 0.5 percent in February, after a 0.2 percent rise in the preceding month.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154327/
*Spain Feb Retail Sales +5.5% On Month Vs. +0.9% In January
Spain Feb Retail Sales +5.5% On Month Vs. +0.9% In January
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154326/
*Spain Feb Retail Sales +1.8% On Year Vs. +1.7% In January
Spain Feb Retail Sales +1.8% On Year Vs. +1.7% In January
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154325/
*Slovakia Mar Consumer Confidence -7.8 Vs. -11.1 In February
Slovakia Mar Consumer Confidence -7.8 Vs. -11.1 In February
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154323/
*Slovakia Mar Economic Sentiment 97.9 Vs. 98.0 In February
Slovakia Mar Economic Sentiment 97.9 Vs. 98.0 In February
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154324/
*Spain Feb HICP Down 0.1% On Month
Spain Feb HICP Down 0.1% On Month
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154322/
*Spain Feb HICP +0.9% On Year Vs. +1.1% In January
Spain Feb HICP +0.9% On Year Vs. +1.1% In January
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154321/
GBP/USD, EUR/GBP and GBP/CAD Prices and Outlook - UK Webinar
DAX 30, Euro Stoxx 50: Bear Market Rally Leaves Global Markets at Risk of Bull Trap
British Pound (GBP) Latest: GBP/USD and FTSE 100 Rally Look Vulnerable
EUR/USD Retreat May Accelerate Ahead of Key Confidence Data
Crude Oil Prices Down As Coronavirus, Price War Threaten Glut
Gold Price Levels to Watch Following US Fiscal Stimulus Program
Euro May Rise on ESM, Crude Oil Selloff Deepens on OPEC Price War
The Singapore Dollar and MAS: What is SGD and How to Trade it?
NZD/USD Rate Outlook Clouded by Bear Flag Formation
Sunday, 29 March 2020
Australian Dollar May Wilt as Yen and US Dollar Rise in Asia Trade
US Dollar Sinks. Gold Prices, Wall Street Soar on Stimulus. Bottom Found?
US Dollar Sinks. Gold Prices, Wall Street Soar on Stimulus. Bottom Found?
Dow Jones and FTSE 100 Forecasts for the Week Ahead
Dow Jones and FTSE 100 Forecasts for the Week Ahead
USD/MXN Outlook: Debt Rating Downgrade May Bring Further Weakness for the Peso
USD/MXN Outlook: Debt Rating Downgrade May Bring Further Weakness for the Peso
Euro Forecast: More Gains on Way for EUR/USD, EUR/JPY, EUR/CHF?
Euro Forecast: More Gains on Way for EUR/USD, EUR/JPY, EUR/CHF?
Saturday, 28 March 2020
Gold Prices May Drop as Liquidation Strikes Global Markets Anew
Gold Prices May Drop as Liquidation Strikes Global Markets Anew
US Dollar May Rise if ISM, NFP and PMI Data Spurs Haven Demand
Nasdaq 100, DAX 30, Nikkei 225 Technical Forecasts
USD/CAD: Canadian Dollar Forecast Post-BOC Emergency Rate Cut
USD/CAD: Canadian Dollar Forecast Post-BOC Emergency Rate Cut
Stock Market Forecast: Recession Likely Unavoidable Amid Virus Fallout
Australian Dollar Boosted By Stimulus Hope, Coronavirus Stays in Charge
Australian Dollar Boosted By Stimulus Hope, Coronavirus Stays in Charge
Dollar Loses Ground On Weak Data, Massive Fiscal Stimulus
The U.S. dollar saw a weak session on Friday, extending recent slide, weighed down by recent weak economic data and the government's massive fiscal stimulus worth $2 trillion.
President Donald Trump signed the stimulus bill designed to respond to the economic fallout from the coronavirus pandemic after the House voted to approve it this afternoon.
The vote from the House happened after the package was unanimously approved the Senate late Wednesday.
The massive bill includes $250 billion in direct payments to individuals and families, $350 billion in small business loans, $250 billion in unemployment insurance benefits and $500 billion in loans for distressed companies.
The legislation will purportedly provide direct payments of $1,200 to individuals making up to $75,000 a year, $2,400 to couples making up to $150,000 and an additional $500 per child.
The bill also reportedly includes $130 billion in funding for hospitals as well as $150 billion for state and local governments.
The dollar index dropped to 98.27, giving up nearly 1.1% from previous close.
Against the Euro, the dollar weakened to $1.1136, giving up nearly 1%.
The pound sterling was stronger by more than 2% at $1.2459.
The Yen strengthened to 107.93 a dollar, from 109.68 a dollar Thursday evening.
Against the Aussie, the was lower by about 1.7% with the AUD-USD pair trading at 0.6165.
Against Swiss franc, the dollar was down more than 1% at 0.9517. Against the loonie, it was down slightly at 1.4007.
The Canadian central bank today reduced its benchmark rate unexpectedly to cushion the economic shocks from the COVID-19 pandemic.
The BoC lowered its target for the overnight rate by 50 basis points to 0.25%.
The Governing Council is willing to take further action as required to support the Canadian economy and financial system and to keep inflation on target, the bank said.
revised data from the University of Michigan showed consumer sentiment in the U.S. deteriorated by much more than initially estimated in the month of March.
The report said the consumer sentiment index for March was downwardly revised to 89.1 from the preliminary reading of 95.9.
The consumer sentiment index is now down sharply from the final February reading of 101.0, reflecting the fourth largest one-month decline in nearly a half-century.
The Commerce Department's report showed personal income climbed by 0.6% in February, matching the increase seen in January. Economists had expected income to rise by 0.4%.
Meanwhile, personal spending edged up by 0.2% for the second straight month, matching expectations.
According to a report released by the Labor Department on Thursday, initial jobless claims skyrocketed to 3,283,000 in the week ended March 21, an increase of 3,001,000 from the previous week's revised level of 282,000.
Economists had expected jobless claims to spike to about 1.5 million from the 281,000 originally reported for the previous week.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154295/
Treasuries See Further Upside Amid Lingering Coronavirus Concerns
Following the advance seen in the previous session, treasuries saw some further upside during the trading day on Friday.
Bond prices moved higher early in the session and remained firmly positive throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 6.2 basis points to 0.749 percent.
The early weakness among treasuries came amid lingering concerns about the economic impact of the coronavirus, as the number of confirmed cases in the U.S. surpassed the number of cases in China or Italy.
According to data from Johns Hopkins University, there have been more than 94,000 confirmed coronavirus cases in the U.S. and nearly 1,500 deaths.
A report from the University of Michigan showing consumer sentiment deteriorated by much more than initially estimated in the month of March may also have increased the appeal of safe havens such as treasuries.
The report said the consumer sentiment index for March was downwardly revised to 89.1 from the preliminary reading of 95.9.
The consumer sentiment index is now down sharply from the final February reading of 101.0, reflecting the fourth largest one-month decline in nearly a half-century.
Meanwhile, bond traders largely shrugged off House passage of the massive $2 trillion stimulus bill designed to respond to the economic fallout from the coronavirus pandemic.
Republican Congressman Thomas Massie of Kentucky injected some last-minute drama, but the relief package was eventually approved by voice vote, as expected.
Next week, the Labor Department's monthly jobs report is likely to attract attention, although a lot other developments may also catch traders' eyes before the release of the data next Friday.
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source http://www.mt5.com/forex_news/quickview/2154294/
Friday, 27 March 2020
*India Lowers Reverse Repo Rate By 90 Bps To 4.00%
India Lowers Reverse Repo Rate By 90 Bps To 4.00%
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154225/
*RBI Governor: MPC Voted 4-2 To Cut Rates By 75 Bps
RBI Governor: MPC Voted 4-2 To Cut Rates By 75 Bps
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source http://www.mt5.com/forex_news/quickview/2154224/
*India Cuts Key Interest Rate By 75 Bps To 4.40%
India Cuts Key Interest Rate By 75 Bps To 4.40%
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source http://www.mt5.com/forex_news/quickview/2154223/
Fitch Affirms U.S. Sovereign Ratings At 'AAA'
Fitch Ratings affirmed the sovereign ratings of the United States at 'AAA' with a stable outlook, citing its structural strengths.
However, the rating agency cautioned that high fiscal deficits and debt, which were rising even before the onset of the huge economic shock precipitated by the coronavirus - are starting to erode its credit strengths.
The U.S. has shut down parts of its economy to contain the spread of the disease, which is likely to cause a deep contraction centered on the second quarter of 2020 and a massive rise in unemployment.
"The risk of a near-term negative rating action has risen given the magnitude of the shock to the economy and public finances from the coronavirus and the commensurate and necessary fiscal policy response, particularly in the absence of a credible consolidation plan for the country's pre-existing, longer-term public finance and government debt challenges," the agency said.
According to Fitch, the U.S. economy would shrink by around 3 percent in 2020. If the virus is contained during the second half, Fitch expects real growth to recover strongly in 2021.
Congress is set to pass a $2 trillion stimulus package of revenue and spending measures. The degree to which the economy recovers and the extent to which the fiscal stimulus is eventually unwound will be key rating considerations, Fitch added.
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source http://www.mt5.com/forex_news/quickview/2154222/
*New Zealand Finmin: Wage Subsidy Scheme To Cost NZ$8 Bln-NZ$12 Bln
New Zealand Finmin: Wage Subsidy Scheme To Cost NZ$8 Bln-NZ$12 Bln
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source http://www.mt5.com/forex_news/quickview/2154221/
Covid-19 Control Measures Weigh On China's Industrial Profits
China's industrial profits plunged at the start of the year as coronavirus, or covid-19, epidemic weighed heavily on economic activity, data publish by the National Bureau of Statistics showed Friday.
Industrial profits declined sharply by 38.3 percent during January to February period from the same period last year.
Profits of state-owned firms declined 32.9 percent and that of private firms decreased 36.6 percent.
Amid epidemic control measures, production as well as sales declined considerably. Moreover, labor cost and depreciation further squeezed profits.
The sudden outbreak of coronavirus has severely impacted the production and operation of industrial enterprises, NBS official Zhang Weihua, said.
Zhang said the domestic epidemic situation has been effectively controlled and the production is resuming.
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source http://www.mt5.com/forex_news/quickview/2154220/
US Dollar Eyes Sentiment, Spending Data as Fiscal Package Heads to Trump
*China Jan-Feb Industrial Profits Down 38.3% On Year
China Jan-Feb Industrial Profits Down 38.3% On Year
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source http://www.mt5.com/forex_news/quickview/2154219/
Gold Prices Steady Despite Increased Coronavirus Stimulus Hopes
Indian Rupee Falls on RBI Emergency Cut, USD/INR Focuses on Sentiment
Tokyo Overall Inflation Gains 0.4% On Year In March
Overall consumer prices in the Tokyo region of Japan were up 0.4 percent on year in March, the Ministry of Communications and Internal Affairs said on Friday.
That exceeded expectations for an increase of 0.3 percent and was unchanged from the February reading.
Core CPI, which excludes volatile food prices, also advanced an annual 0.4 percent. That was in line with expectations and down from 0.5 percent in the previous month.
On a seasonally adjusted monthly basis, overall inflation was up 0.1 percent and core CPI was unchanged.
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source http://www.mt5.com/forex_news/quickview/2154218/
*Tokyo Region Inflation +0.4% On Year In March; Core CPI +0.4%
Tokyo Region Inflation +0.4% On Year In March; Core CPI +0.4%
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154217/
Singapore Dollar, USD/SGD Outlook: Virus Stimulus Package, MAS Eyed
Can Coronavirus Helicopter Money Bring Markets Back to Life?
Tokyo Inflation Data Due On Friday
Japan will on Friday release March figures for consumer prices in the Tokyo region, highlighting a modest day for Asia-Pacific economic activity.
Overall Tokyo inflation is expected to add 0.3 percent on year, slowing from 0.4 percent in February. Core CPI is called at an annual 0.4 percent, down from 0.5 percent in the previous month.
New Zealand will see March results for the consumer confidence index from ANZ; in February, the index fell 0.5 percent on month to a score of 122.1.
China will provide February figures for industrial profits; in January, profits were down 3.3 percent on year.
Singapore will see February data for producer prices; in January, producer prices were down 0.7 percent on month and up 0.8 percent on year.
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source http://www.mt5.com/forex_news/quickview/2154216/
South Korea Consumer Sentiment Plummets In March
Consumer confidence in South Korea tanked in March, the Bank of Korea said on Friday after its monthly index tumbled 18.5 points to a reading of 78.4.
Consumer sentiment regarding current living standards was eight points lower than in February, at 83, and that concerning the future outlook for living standards was 10 points down, to 83.
Consumer sentiment related to future household income was 10 points lower than in February, at 87, and that concerning future household spending was 13 points lower than in the previous month, at 93.
Consumer sentiment concerning current domestic economic conditions was 28 points lower than in February, at 38, and that concerning future domestic economic conditions was 14 points down, at 62.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154215/
*New Zealand Consumer Confidence Index -12.9% In March To 106.3 - ANZ
New Zealand Consumer Confidence Index -12.9% In March To 106.3 - ANZ
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source http://www.mt5.com/forex_news/quickview/2154214/
How Do Politics and Central Banks Impact FX Markets?
Dollar Tumbles As Jobless Claims Soar
The U.S. dollar tumbled against most of its peers after data showed first-time unemployment claims rose to an all-time high in the week ended March 21 due to businesses shutting down almost across the U.S. due to the coronavirus pandemic.
The report from the Labor Department showed initial jobless claims skyrocketed to 3,283,000 in the week ended March 21, an increase of 3,001,000 from the previous week's revised level of 282,000.
Economists had expected jobless claims to spike to about 1.5 million from the 281,000 originally reported for the previous week.
With the record-breaking increase, the number of seasonally adjusted initial claims reached the highest level in the history of the seasonally adjusted series.
The sharp rise in jobless claims offset optimism over the Senate nod to the $2 trillion fiscal stimulus package aimed at mitigating the economic effects of the virus. The bill will now move to the Democrat-controlled House on Sunday for final approval.
Initial jobless claims skyrocketed to 3,283,000 in the week ended March 21, an increase of 3,001,000 from the previous week's revised level of 282,000.
Economists had expected jobless claims to spike to about 1.5 million from the 281,000 originally reported for the previous week.
With the record-breaking increase, the number of seasonally adjusted initial claims reached the highest level in the history of the seasonally adjusted series.
The dollar index tanked to 99.24, sliding gradually right since morning, and was last seen at 99.44, down 1.6% from previous close.
Against the Euro, the dollar weakened to $1.1034, going down by nearly 1.4%.
The British Pound Sterling was pretty strong against the greenback, with a unit of sterlig fetching $1.2193, more than 2.6% up from Wednesday's $1.1880. Bank of England's policymakers today unanimously decided to hold the interest rate at a record low and asset purchase programme and signaled further easing if required.
The bank also noted risk of longer-term damage to the economy from the coronavirus, or covid-19 outbreak.
At the regular policy meeting, the Monetary Policy Committee governed by Andrew Bailey decided to maintain the interest rate at 0.1% and the quantitative easing at GBP 645 billion.
The Japanese Yen strengthened to 109.59 yen, rallying from previous close of 111.21 yen a dollar.
The Aussie was up sharply at 0.6057, more than 1.6% higher than yesterday's close.
Against Swiss franc and the Loonie, the dollar was down 1.4% and 1.2%, at 0.9633 and 1.4021, respectively.
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source http://www.mt5.com/forex_news/quickview/2154213/
AUD/USD Rate Rebound Undermined by Bear Flag Formation
British Pound, GBP/USD Climbs Through Resistance. Yen at Risk Next
Treasuries Move To The Upside Following Spike In Jobless Claims
Following the release of a report showing a spike in first-time jobless claims, treasuries moved to the upside during trading on Thursday.
Bond prices fluctuated after an initial jump but managed to remain firmly positive. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.7 basis points to 0.811 percent.
The strength among treasuries came after the Labor Department released a report showing first-time claims for unemployment benefits soared last week, as large swaths of the U.S. economy were shut down due to the coronavirus pandemic.
The Labor Department said initial jobless claims skyrocketed to 3,283,000 in the week ended March 21st, an increase of 3,001,000 from the previous week's revised level of 282,000.
Economists had expected jobless claims to spike to about 1.5 million from the 281,000 originally reported for the previous week.
While the increase in unemployment claims is staggering, economists noted the data may still underestimate the number of new claims due to constraints on the capacity of offices to process claims.
However, buying interest was somewhat subdued after last night's news that the Senate finally voted to approve a massive $2 trillion stimulus package in response to the coronavirus pandemic.
Shrugging off concerns among some Republican Senators about an expansion of unemployment benefits, the Senate eventually voted 96 to 0 in favor of the bill.
The bill now heads to the Democrat-controlled House, which will be under pressure to quickly send the legislation to President Donald Trump's desk.
House Speaker Nancy Pelosi, D-Calif., said the House will take up the legislation on Friday with strong bipartisan support.
"The longer the crisis lasts the more likely that even good quality businesses will fail and unemployment will climb higher - hence the importance of the agreement on the fiscal package that can provide support for key industries and small businesses," said ING Chief International Economist James Knightley.
The higher close by treasuries also came after the Treasury Department revealed strong demand for its auction of $32 billion worth of seven-year notes.
The seven-year note auction drew a high yield of 0.680 percent and a bid-to-cover ratio of 2.76, while the ten previous seven-year note auctions had an average bid-to-cover ratio of 2.39.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Reports on personal income and spending and consumer sentiment are due to be released on Friday but are not likely to attract much attention.
Traders are more likely to keep an eye on developments on Capitol Hill, where the House will be seeking to pass the stimulus bill without forcing all members to return to Washington.
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source http://www.mt5.com/forex_news/quickview/2154211/
Oil Futures Snap 3-day Winning Streak, End Sharply Lower
Crude oil prices declined sharply and closed lower for the first time in four sessions, as concerns about outlook for energy demand weighed on the commodity.
West Texas Intermediate crude oil futures for May ended down $1.89, or about 7.7%, at $22.60 a barrel.
On Wednesday, WTI Crude oil futures ended up $0.48, or 2%, at $24.49 a barrel, after having gained 2.8% and 3.2% in the previous two sessions.
According to reports, the International Energy Agency's executive director Fatih Birol said during an online event hosted by the Atlantic Council today that global oil demand will likely fall by about 20 million barrels a day, due to widespread lockdown across the globe.
Also, the failure of OPEC and its allies to come to an agreement with regard to production cuts could result in oversupply in the oil market.
Further, reports that U.S. Department of Energy is suspending its plans to buy crude for the country's Strategic Petroleum Reserve hurt oil prices. The energy department has reportedly taken this move as the requested $3 billion in funding for the project was left out of the $2 trillion stimulus package.
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source http://www.mt5.com/forex_news/quickview/2154212/
Thursday, 26 March 2020
Why is GBP/USD Impacted by Equities?- CAD & Oil Link Breaks Down: Cross-Asset Correlation
Singapore Industrial Production Decreases In February
Singapore industrial production fell in February after rising in the previous month, data from the Economic Development Board showed on Thursday.
Industrial production decreased 1.1 percent year-on-year in February, after a 3.5 percent increase in January. Economists had forecast a 2.0 percent fall.
Excluding biomedical manufacturing, industrial output fell 2.5 percent in February.
Among clusters, precision engineering expanded 26.2 percent annually in February and general manufacturing grew 16.1 percent. Transport engineering increased 10.9 percent and those of biomedical manufacturing and chemicals rose by 6.4 percent and 5.4 percent, respectively.
Meanwhile, electronics output declined 17.3 percent.
On a monthly basis, industrial production decreased 22.3 percent in February, after a 18.7 percent rise in the prior month. Output was expected to fall of 11.5 percent.
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source http://www.mt5.com/forex_news/quickview/2154137/
*Singapore Feb Industrial Production-22.3% M/M Vs.+18.7% In Jan,consensus -11.5%
Singapore Feb Industrial Production-22.3% M/M Vs.+18.7% In Jan,consensus -11.5%
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source http://www.mt5.com/forex_news/quickview/2154136/
*Singapore Feb Industrial Production -1.1% Y/Y Vs. +3.5% In Jan, Consensus -2%
Singapore Feb Industrial Production -1.1% Y/Y Vs. +3.5% In Jan, Consensus -2%
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source http://www.mt5.com/forex_news/quickview/2154135/
European Economics Preview: Bank Of England Rate Decision Due
The interest rate announcement from the Bank of England is due on Thursday, headlining a busy day for the European economic news.
At 3.00 am ET, the Office for National Statistics releases UK retail sales data for February. Economists forecast sales to grow 0.2 percent on month, following a 0.9 percent increase in January.
Also, Germany Gfk consumer confidence survey data is due. The forward-looking consumer sentiment index is seen at 7.1 in April versus 9.8 in March.
At 4.00 am ET, the Swedish National Institute of Economic Research is set to issue economic tendency survey data.
Half an hour later, Sweden foreign trade data is due from Statistics Sweden.
At 5.00 am ET, the European Central Bank is set to issue economic bulletin and money supply data. Economists forecast euro area M3 growth to remain unchanged at 5.2 percent in February.
At 8.00 am ET, the Bank of England publishes the outcome of the monetary policy meeting. Economists expect the bank to retain its record low interest rate and to expand asset purchase programme to GBP 635 billion from GBP 435 billion.
In the meantime, the Czech National bank announces its monetary policy decision. The two-week repo rate is likely to be lowered to 1.25 percent from 1.75 percent.
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source http://www.mt5.com/forex_news/quickview/2154134/
British Pound (GBP) Latest: GBP/USD Trending Higher Despite Poor Data
Singapore Economy Contracts Sharply In Q1, Govt Downgrades Outlook
The Singapore economy logged a sharp contraction at the start of the year as the supply chain disruptions and travel restrictions following the outbreak of coronavirus weighed heavily on construction and services sectors.
Citing the weaker-than-expected performance of the city-state economy and the sharp deterioration in the external and domestic economic conditions, the ministry downgraded its outlook for 2020.
Gross domestic product shrank 10.6 percent on a quarter-on-quarter annualized rate in the first quarter, reversing a 0.6 percent rise in the fourth quarter of 2019, the Ministry of Trade and Industry reported Thursday.
On a yearly basis, the economy shrank 2.2 percent after expanding 1 percent in the preceding period.
The ministry lowered GDP growth forecast for 2020 to "-4.0 to -1.0 percent" from "-0.5 to 1.5 percent." The wider forecast range is to account for heightened uncertainties in the global economy, given the unprecedented nature of the COVID-19 outbreak, the ministry added.
Deputy Prime Minister Heng Swee Keat is set to announce another stimulus package, later today. The central bank has brought forward its semi-annual monetary policy meeting to March 30.
The service sector contracted 3.1 percent as air transport, accommodation, food services and retail trade sectors shrank on the back of a sharp decline in tourist arrivals as well as a fall in domestic consumption as a result of the COVID-19 outbreak.
The construction sector output declined 4.3 percent on year. The ministry said supply chain disruptions and delays in the return of foreign workers as a result of the lockdowns and travel restrictions implemented by other countries in response to the covid-19 outbreak have also adversely affected some construction projects.
Due to declines in electronics and chemicals clusters, manufacturing output contracted 0.5 percent on year in the first quarter.
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source http://www.mt5.com/forex_news/quickview/2154133/
*Bank Of Korea To Supply Unlimited Liquidity For 3 Months
Bank Of Korea To Supply Unlimited Liquidity For 3 Months
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source http://www.mt5.com/forex_news/quickview/2154132/
GBP/USD Outlook Ahead of BoE Rate Decision, US Jobless Claims
*Singapore Q1 GDP Falls 2.2% Vs. +1.0% In Q4
Singapore Q1 GDP Falls 2.2% Vs. +1.0% In Q4
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source http://www.mt5.com/forex_news/quickview/2154131/
*Singapore MTI Cuts 2020 GDP Outlook To -4.0% To -1.0%
Singapore MTI Cuts 2020 GDP Outlook To -4.0% To -1.0%
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source http://www.mt5.com/forex_news/quickview/2154130/
Crude Oil Pares Gains As Nervous Market Looks To US Jobless Claims
EUR/USD Rate Carves Higher Highs and Lows as Bearish Momentum Abates
Japan Producer Prices Rise 2.1% On Year In February
Producer prices in Japan were up 2.1 percent on year in February, the Bank of Japan said on Thursday.
That was shy of expectations for an annual increase of 2.2 percent and down from 2.3 percent in January.
On a monthly basis, producer prices were flat after falling 0.3 percent a month earlier.
Individually, prices were slightly higher for communications services, transportation, postal activities, real estate, leasing and finance. Prices were down for advertising services.
The Services Producer Price Index (All items excluding International transportation) also rose 2.1 percent on year.
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source http://www.mt5.com/forex_news/quickview/2154129/
*Japan Producer Prices +2.1% On Year In February
Japan Producer Prices +2.1% On Year In February
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2154128/
Australian Dollar, Stocks Brace for Multi-Million US Jobless Claims
How Do Politics and Central Banks Impact FX Markets?
Japan Producer Price Data Due On Thursday
Japan will on Thursday release February figures for producer prices, setting the pace for a light day in Asia-Pacific economic activity.
Producer prices are expected to rise 2.2 percent om year, slowing from 2.3 percent in January.
China will see final Q4 numbers for current account; the previous reading suggested a surplus of $40.1 billion.
Hong Kong will release February figures for imports, exports and trade balance. In January, imports were worth HKD299.99 billion and exports were at HKD269.40 billion for a trade surplus of HKD30.60 billion.
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source http://www.mt5.com/forex_news/quickview/2154127/
Dollar Slides Again
The U.S. dollar drifted lower on Wednesday, extending recent slide, after Senate Leaders and White House officials reached an agreement on a $2 trillion fiscal stimulus package that aims to provide economic relief during the ongoing coronavirus pandemic.
The dollar index dropped to a low of 100.85 in late afternoon trades, and was at 100.92 a little while ago, down 1.1% from previous close.
Against the Euro, the dollar weakened to $1.0892, down almost 1% from Tuesday's close of $1.0787.
Against pound sterling, the dollar recovered to $1.1642 by noon from an early low of $1.1972, and was last seen at $1.1903.
The Japanese Yen was little changed at 111.17 a dollar, after moving between 110.76 and 111.67.
The dollar was flat at 0.5959 against the Aussie. Against the loonie and Swiss franc, the dollar was down 1.75% and 0.6%, at 1.4205 and 0.9758, respectively.
A report released by the Commerce Department showed an unexpected increase in new orders for U.S. durable goods in the month of February.
The Commerce Department said durable goods orders jumped by 1.2% in February after a revised uptick 0.1% in January. Economists had expected durable goods orders to decrease by about 0.8% compared to the 0.2% dip that had been reported for the previous month.
After days of intense negotiations, Senate leaders and White House officials have finally reached an agreement on a $2 trillion fiscal stimulus package intended to provide economic relief during the ongoing coronavirus pandemic.
Senate Majority Leader Mitch McConnell, R-Ken., and Senate Minority Leader Chuck Schumer, D-N.Y., announced the deal in the early morning hours on Wednesday, with a vote on the bill expected later in the afternoon.
"At last, we have a deal. After days of intense discussions, the Senate has reached a bipartisan agreement on a historic relief package for this pandemic," McConnell announced from the Senate floor.
McConnell described the bill as a "war-time level of investment" in the country, providing financial assistance to individuals and companies.
According to CNN, the massive bill includes $250 billion in direct payments to individuals and families, $350 billion in small business loans, $250 billion in unemployment insurance benefits and $500 billion in loans for distressed companies.
The legislation will purportedly provide direct payments of $1,200 to individuals making up to $75,000 a year, $2,400 to couples making up to $150,000 and an additional $500 per child.
Schumer said the bill also includes "unemployment compensation on steroids," expanding eligibility to self-employed workers and increasing the maximum benefit by $600 a week for four months.
There is a possibility of a delay in passage of the bill due to a dispute between Senator Bernie Sanders, I-Vt., and several Republican Senators.
Sanders said he is prepared to put a hold on the legislation unless the GOP Senators drop their objections to fast-tracking the bill over a provision that would increase maximum unemployment benefits by $600 a week for four months.
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source http://www.mt5.com/forex_news/quickview/2154126/
NZD/USD Forecast: Bear Flag Takes Shape, RSI Retains Bearish Formation
Canadian Dollar Rose, USD/CAD Uptrend Held. Virus Bill Vote Delayed?
Crude Oil Futures Settle Higher
Crude oil prices moved higher on Wednesday, following a rally in gasoline futures due to a decline in weekly gasoline inventories.
Optimism about the passage of the massive $2 trillion stimulus bill also contributed to oil's rise in the session.
West Texas Intermediate crude oil futures for May ended up $0.48, or about 2%, at $24.49 a barrel.
Brent crude futures gained about $0.30, or 1%, at $27.45 a barrel.
Data released by the Energy Information Administration (EIA) this morning showed crude oil inventories in the U.S. rose by 1.6 million barrels for the week ended March 20, against expectations for a 2.8 million barrels increase.
The data showed gasoline inventories fell by 1.5 million barrels, more than twice the expected drop, while distillate stockpiles were lower by about 680,000 barrels, compared with an expected drop of 1.9 million barrels.
The EIA report also said overall fuel demand fell by nearly 2.1 million barrels per day.
Data from industry group the American Petroleum Institute showed on Tuesday that there was a decline of 1.25 million barrels of crude oil held in storage for the week ending on March 20. Expectations were for a surplus of 2.774-million barrel.
U.S. Senate leaders and White House officials have finally reached an agreement on a $2 trillion fiscal stimulus package intended to provide economic relief during the ongoing coronavirus pandemic.
Senate Majority Leader Mitch McConnell, R-Ken., and Senate Minority Leader Chuck Schumer, D-N.Y., announced the deal in the early morning hours on Wednesday, with a vote on the bill expected later in the afternoon.
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source http://www.mt5.com/forex_news/quickview/2154125/
Treasuries Show A Lack Of Direction Before Closing Lower
Treasuries showed a lack of direction throughout the trading day on Wednesday before finishing the session in negative territory.
Bond prices moved to the downside going into the close after spending the session bouncing back and forth across the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.2 basis points to 0.858 percent.
The lower close by treasuries came as stocks on Wall Street extended yesterday's massive rally amid news Senate leaders and the White House have reached an agreement on a $2 trillion stimulus bill.
Senate Majority Leader Mitch McConnell, R-Ken., announced the agreement very early this morning, saying he expects the legislation to pass later today.
McConnell described the bill as a "war-time level of investment" in the country, providing financial assistance to individuals and companies amid the ongoing coronavirus pandemic.
The Republican leader's Democratic counterpart, Senate Minority Leader Chuck Schumer, D-N.Y., also praised the bill, which he said would provide "unemployment compensation on steroids."
Schumer also claimed the final bill would provide increased oversight of a proposed $500 billion corporate bailout fund, which had been a key sticking point among Democrats.
The Senate could pass the bill as soon as today, although the stimulus package would still need to be approved by the Democrat-controlled House before heading to President Donald Trump's desk.
On the U.S. economic front, a report released by the Commerce Department showed an unexpected increase in new orders for U.S. durable goods in the month of February.
The Commerce Department said durable goods orders jumped by 1.2 percent in February after a revised uptick 0.1 percent in January.
Economists had expected durable goods orders to decrease by about 0.8 percent compared to the 0.2 percent dip that had been reported for the previous month.
The unexpected increase in durable goods orders was largely due to a substantial rebounded in orders for transportation equipment, which spiked by 4.6 percent in February after falling by 0.9 percent in January.
However, excluding the jump in orders for transportation equipment, durable goods orders fell by 0.6 percent in February after climbing by 0.6 percent in January. Economists had expected a 0.4 percent drop.
"The rise in durable goods orders in February reflected a surge in transport orders, with underlying capital goods orders and shipments falling back," said Michael Pearce, Senior U.S. Economist at Capital Economics.
He added, "That suggests business equipment investment was on track to broadly stagnate in the first quarter, even before the virus crushed domestic demand."
Meanwhile, the Treasury Department revealed that its auction of $41 billion worth of five-year notes attracted above average demand.
The five-year note auction drew a high yield of 0.535 percent and a bid-to-cover ratio of 2.53, while the ten previous five-year note auctions had an average bid-to-cover ratio of 2.40.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Looking ahead, the Treasury is due to announce the results of its auction of $32 billion worth of seven-year notes on Thursday.
A report on weekly jobless claims is also scheduled to be released on Thursday and may attract some attention as it will be among the first data points to reflect the impact of the coronavirus outbreak.
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source http://www.mt5.com/forex_news/quickview/2154124/
Wednesday, 25 March 2020
Malaysia Inflation Slows In February
Malaysia's consumer price inflation slowed in February, figures from the Department of Statistics showed on Wednesday.
The consumer price index rose 1.3 percent year-on-year in February, after a 1.6 percent increase in January. Economists had expected a 1.4 percent rise.
Among the main groups, prices for miscellaneous goods and services grew 2.5 percent annually in February. Prices for transport rose 2.4 percent and those of housing, water, electricity, gas and other fuels, and communication increased 1.6 percent and 1.5 percent, respectively.
On a month-on-month basis, consumer prices remained unchanged in February.
The core CPI rose 1.3 percent annually in February.
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source http://www.mt5.com/forex_news/quickview/2154060/
European Economics Preview: UK Inflation Data Due
Consumer and producer prices from the UK are due on Wednesday, headlining a light day for the European economic news.
At 3.00 am ET, unemployment data is due from Norway. The jobless rate is seen unchanged at 3.9 percent in January.
At 4.00 am ET, producer prices from Spain and industrial production from Austria are due.
Half an hour later, Statistics Sweden is slated to issue producer prices for February. Prices had fallen 0.4 percent on year in January.
At 5.30 am ET, the Office for National Statistics releases UK consumer and producer prices for February. Inflation is expected to slow marginally to 1.7 percent from 1.8 percent in January.
UK output prices are forecast to rise 0.9 percent on year in February, slower than the 1.1 percent rise in January.
At 7.00 am ET, the Confederation of British Industry publishes Distributive Trades survey data. The retail sales balance is seen at -12 percent in March versus +1 percent in February.
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source http://www.mt5.com/forex_news/quickview/2154059/
British Pound (GBP) Latest: Modest Trend Higher in GBP/USD to Continue
Eurogroup Broadly Supports Use Of Bailout Fund To Fight Crisis
Eurozone finance ministers broadly supported the use of bailout fund, or the European Stability Mechanism, to help those member countries struggling hardly with the coronavirus outbreak.
After the Eurogroup video conference on Tuesday, President M?rio Centeno, said leaders took stock of all the measures already taken and also of the initiatives that are being explored among institutions to tackle the economic crisis caused by the coronavirus outbreak.
There is broad support to consider a Pandemic crisis support safeguard based on an existing ESM precautionary instrument, he said.
The size of the available instrument could be in the range of 2 percent of members' GDP, as a benchmark, Centeno said.
"While there is broad support among members around these features, more work is needed on details." The decision will be taken at the meeting of the leaders on Thursday.
The precautionary credit line is the most suitable instrument to respond to the corona challenge, particularly the precautionary credit line called ECCL, or Enhanced Conditions Credit Line, ESM Managing Director Klaus Regling, said.
A precautionary credit line, the ECCL in particular, would be available for all member states of the euro area, but it is up to every member state to decide whether they want to apply for it or not, Regling added.
This could be adjusted possibly in view of the severity of the spreading of the coronavirus and its economic impact. If a credit line is drawn, the funds would be used to finance the country's immediate health care and economic responses to the crisis.
Responding to a question on the maximum size of the credit line, Regling said it could go up if there is a particularly serious case, but that is not decided yet. "There was today a broad consensus around this 2 percent number."
The reluctance to agree on corona bonds or other forms of clear burden sharing, at least for now, means that a euro debt crisis could return in the aftermath of the current crisis, no matter when this will be, Carsten Brzeski and Bert Colijn, ING economists said.
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source http://www.mt5.com/forex_news/quickview/2154058/
*Malaysia Feb CPI Flat On Moth
Malaysia Feb CPI Flat On Moth
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*Malaysia Feb Inflation 1.3% Vs. 1.6% In January
Malaysia Feb Inflation 1.3% Vs. 1.6% In January
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New Zealand February Trade Surplus NZ$594 Million
New Zealand posted a merchandise trade surplus of NZ$594 million in February, Statistics New Zealand said on Wednesday.
That beat expectations for a surplus of NZ$550 million following the NZ$340 million deficit in January.
Exports were up 4.5 percent on year to NZ$4.90 billion - matching expectations and up from NZ$4.73 billion in the previous month.
The leading contributor to the rise was exports of milk powder, butter, and cheese (the largest export commodity group), up NZ$190 million (15 percent) to NZ$1.5 billion.
Milk powder rose NZ$191 million (28 percent) in value; quantity was little changed, down 0.3 percent. The average unit value rose 29 percent. Butter fell NZ$58 million (26 percent).
Crude oil exports rose NZ$57 million (282 percent) to NZ$77 million. Exports of crude oil often fluctuate from month to month. Wine exports rose NZ$19 million (13 percent) to NZ$172 million. These rises were partly offset by falls in other commodities.
Imports tumbled an annual 9.9 percent to NZ$4.3 billion - again roughly in line with forecasts and down from NZ$5.07 billion a month earlier.
Capital goods (products used to produce other goods and services) fell NZ$206 million (20 percent).
Industrial transport equipment fell NZ$161 million (50 percent), led by a fall in aircraft (down NZ$143 million). Imports of aircraft were at relatively high levels in February 2019. Machinery and plant fell NZ$45 million (6.4 percent).
Intermediate goods (products imported as inputs in the production of other goods and services) fell NZ$134 million (6.6 percent). The fall was led by processed industrial supplies (such as steel and plastics), down NZ$71 million, and crude oil (down NZ$55 million). The fall in crude oil was quantity-led as the unit price rose 20 percent.
Consumption goods fell NZ$92 million (7.4 percent), while passenger motor cars fell NZ$29 million (8.2 percent) and petrol and avgas fell NZ$22 million (25 percent).
Year to date, New Zealand had a deficit of NZ$3.26 billion versus expectations for a NZ$3.418 billion shortfall following the NZ$3.866 billion deficit in the 12 months to January.
Annual goods exports were valued at NZ$60.5 billion, while annual goods imports were valued at NZ$63.7 billion.
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source http://www.mt5.com/forex_news/quickview/2154055/
New Zealand Has NZ$594 Million Trade Surplus
New Zealand had a merchandise trade surplus of NZ$594 million in February, Statistics New Zealand said on Wednesday.
That exceeded expectations for a surplus of NZ$550 million following the NZ$340 million deficit in January.
Exports were up 4.5 percent on year to NZ$4.90 billion - matching expectations and up from NZ$4.73 billion in the previous month.
Imports tumbled an annual 9.9 percent to NZ$4.3 billion - again roughly in line with forecasts and down from NZ$5.07 billion a month earlier.
Year to date, New Zealand had a deficit of NZ$3.26 billion versus expectations for a NZ$3.418 billion shortfall following the NZ$3.866 billion deficit in the 12 months to January.
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source http://www.mt5.com/forex_news/quickview/2154054/
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*New Zealand Trade Surplus NZ$594 Million In February
New Zealand Trade Surplus NZ$594 Million In February
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source http://www.mt5.com/forex_news/quickview/2154053/
*New Zealand Exports +4.5% On Year In February; Imports -9.9%
New Zealand Exports +4.5% On Year In February; Imports -9.9%
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source http://www.mt5.com/forex_news/quickview/2154052/
New Zealand Trade Data Due On Wednesday
New Zealand will on Wednesday release February figures for imports, exports and trade balance, highlighting a modest day for Asia-Pacific economic activity.
Imports are expected to be worth NZ$4.30 billion, down from NZ$5.07 billion in January. Exports are pegged at NZ$4.90 billion, up from NZ$4.73 billion in the previous month. The balance is tipped to show a surplus of NZ$550 million following the NZ$340 million deficit a month earlier.
Australia will see February numbers for skilled vacancies; in January, vacancies were up 0.7 percent on month.
Malaysia will provide February data for consumer prices; in January, overall inflation was up 0.1 percent on month and 1.6 percent on year.
Finally, the markets in Indonesia will be closed on Wednesday for the Hindu New Year and will re-open on Thursday.
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source http://www.mt5.com/forex_news/quickview/2154051/
Dollar Extends Weak Spell Against Peers
The U.S. dollar was weak against most of its peers on Tuesday, losing for a second straight day, due to the Federal Reserve's extensive new measures, including an unlimited expansion of its asset purchases, to support the financial market.
Hopes that the U.S. Congress will eventually agree on a massive relief package worth close to $2 trillion contributed as well to the currency's weakness.
The dollar index eased to a low of 101.05 early on in the session, but recovered gradually as the session progressed. It was hovering around 101.95 in late afternoon trades, still trailing its previous close by about 0.5%.
Against the euro, the dollar weakened to $1.0784 from previous close of $1.0727.
The pound sterling strengthened to $1.1742, gaining more than 1.7% from Monday's $1.1543.
Against the Japanese Yen, the dollar was modestly stronger at 111.41 yen, compared to 111.24 on Monday.
The dollar was down sharply against the aussie, with the AUD-USD pair quoting at 0.5943.
Against Swiss franc, the greenback was down at 0.9819, weaker by about 0.29%, while against the loonie, it was down slightly at 1.4487.
Data released by the Commerce Department showed new home sales pulled back sharply in the month of February.
The data said new home sales tumbled by 4.4% to an annual rate of 765,000 in February after spiking by 10.5% to an upwardly revised rate of 800,000 in January.
With the upward revision, the annual rate of new home sales in January was the highest since reaching 842,000 in May of 2007. Economists had expected new home sales to slump by 1.8% to a rate of 750,000 from the 764,000 originally reported for the previous month.
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source http://www.mt5.com/forex_news/quickview/2154050/
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Crude Oil Futures Settle Higher Again
Crude oil prices moved higher on Tuesday, rising further after gains in the previous session thanks to the Federal Reserve's massive asset-buying scheme.
Optimism about the U.S. Congress agreeing on a near $2 trillion fiscal stimulus bill contributed as well in the commodity's uptick.
West Texas Intermediate Crude oil futures for May ended up $0.65, or about 2.8%, at $24.01 a barrel.
Brent crude oil futures were up by about $0.12, or nearly 0.4%, at $27.15 around late afternoon.
On Monday, WTI Crude oil futures for May ended up $0.73, or about 3.2%, at $23.36 a barrel.
Notwithstanding today's gains, there are still concerns about the outlook for near term energy demand.
On Monday, the Fed announced extensive new measures, including an unlimited expansion of its asset purchases, to inject funds into the financial system.
The central bank said it will purchase Treasuries and mortgage-backed securities "in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy."
Treasury Secretary Steve Mnuchin and Senate Minority Leader Chuck Schumer, D-N.Y., both expressed optimism this morning that a deal on a nearly $2 trillion stimulus package would be reached today.
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source http://www.mt5.com/forex_news/quickview/2154049/
AUD/USD Rate Rebound in Focus as RSI Displays Buy Signal
Gold Futures End With Hefty Gains
Gold prices skyrocketed on Tuesday, posting a hefty gain for a second successive session, as massive stimulus plan announced by the Federal Reserve triggered hectic buying in the commodity.
A weaker dollar too supported gold's steep rise.
Gold's rally was also due to suspension in mining operations in three major gold refineries in Switzerland due to mandatory closure of non-essential industry in the country to prevent the spread of the coronavirus.
The dollar index dropped to a low of 101.05 in early trades today, but later recovered to 102.10, but still trailed its previous close by about 0.4%.
Gold futures for April settled at $1,660.80 an ounce, up $93.20, or about 6%, the biggest single-session gain in dollar terms, since November 1984. In percentage terms, gold futures' gain in the session, is the biggest in eleven years.
On Monday, gold futures for April surged up $83, or about 5.6%, to $1,567.60 an ounce.
Silver futures for May ended up $0.996 at $14.257 an ounce, while Copper futures for May settled at $2.1800 per pound, gaining $0.0795 for the session.
On Monday, the Fed said it would go beyond the $700 billion in asset purchases announced last week. The U.S. central bank proposed to buy a wide range of investments, including corporate bonds for the first time, to improve trading in markets that help home buyers finance the purchase of houses, state and local governments borrow and businesses get enough short-term cash to make payroll.
Investors also hoped that the U.S. Senate leaders and the Trump administration will reach an agreement over a stimulus bill that would inject nearly $2 trillion into the economy.
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source http://www.mt5.com/forex_news/quickview/2154048/
Treasuries Give Back Ground Amid Optimism About Stimulus Bill
After moving sharply higher over the past few sessions, treasuries gave back some ground during trading on Tuesday.
Bond prices climbed off their worst levels in afternoon trading but remained firmly negative. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 5.2 basis points to 0.816 percent.
The pullback by treasuries came amid indications Democrats and Republicans are closing in on an agreement on a massive fiscal stimulus bill.
After a meeting with Treasury Secretary Steve Mnuchin and incoming White House Chief of Staff Mark Meadows, Senate Minority Leader Chuck Schumer, D-N.Y., said negotiations were on the "two-yard line."
"Last night, I thought we were on the five-yard line. Right now, we're on the two," Schumer said on the Senate floor. "Of the few outstanding issues, I don't see any that can't be overcome in the next few hours."
Schumer indicated Democrats are still pushing for increased oversight of a proposed $500 billion bailout fund to help industries that are struggling amid the coronavirus outbreak.
The ongoing negotiations come after the stimulus bill failed to clear a key procedural hurdle in the Senate for two straight days amid opposition from Democrats.
Most Democratic Senators voted against advancing the bill amid complaints that the legislation does too much to bail out companies and not enough to provide assistance to workers.
Traders were also reacting to President Donald Trump's comments suggesting the coronavirus-related shutdown of much of the country could end sooner than many anticipated.
Trump said during a Fox News virtual town hall that he would love to see the country "open" by Easter, which is on April 12th.
"We're opening up this incredible country. Because we have to do that. I would love to have it open by Easter," Trump said.
Trump's remarks represent a sharp contrast to his comments just last week indicating the coronavirus pandemic would not be under control until July or August.
The president's eagerness to get the economy back up and running may also lead to conflict with public health officials, who are likely to continue to call for social distancing.
Meanwhile, the Treasury Department revealed that its auction of $40 billion worth of two-year notes attracted below average demand.
The two-year note auction drew a high yield of 0.398 percent and a bid-to-cover ratio of 2.36, while the ten previous two-year note auctions had an average bid-to-cover ratio of 2.58.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Traders largely shrugged off a report from the Commerce Department showing new home sales pulled back off a nearly thirteen-year high in February, with the data widely seen as old news.
A report on durable goods orders in February is scheduled to be released on Wednesday but also likely won't attract much attention, as traders focus on developments in Washington.
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source http://www.mt5.com/forex_news/quickview/2154047/
Euro Outlook at Risk, Dow Jones Best Day Since 1933 on Stimulus Bets
Tuesday, 24 March 2020
European Economics Preview: Eurozone Flash PMI Data Due
Flash Purchasing Managers' survey results from euro area and the UK are due on Tuesday, headlining a light day for the European economic news.
At 2.00 am ET, producer prices and unemployment figures are due from Statistics Finland.
At 4.15 am ET, IHS Markit is scheduled to issue France's composite PMI data. The index is expected to fall sharply to 38.1 in March from 52.0 in February.
At 4.30 am ET, Germany's flash PMI survey results are due. Economists expect the composite indicator to decline to 41.5 in March from 50.7 in February.
At 5.00 am ET, IHS Markit publishes euro area PMI survey results. The composite output index is expected to plunge to 38.8 in March from 51.6 a month ago.
At 5.30 am ET, The UK IHS Markit/CIPS composite PMI data is due. The composite index is seen at 45.1 in March versus 53.0 in the previous month.
At 7.00 am ET, the Confederation of British Industry publishes monthly Industrial Trends survey results. Economists forecast the order book balance to drop to -35 percent in March from -18 percent in February.
At 9.00 am ET, Hungary's central bank announces its interest rate decision. The bank is widely expected to retain its key rate at 0.90 percent.
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source http://www.mt5.com/forex_news/quickview/2153985/