Market Roundup
• US new home sales hit 7-month high, 0.592m v 0.565m 0.558m previous.
• US jobless claims rise 258k v 240k forecast, 243k; continued claims dip 2.0m v 2.035m, 2.039m previous.
• US KC Fed manufacturing 37 v 11 forecast, 11 previous.
• Fed’s Kashkari: would like balance sheet plan ‘as soon as possible’; no reason to hold off on publishing a plan on balance sheet policy.
• Fed’s Williams: expects 3 or 4 hikes total for 2017.
• German consumer sentiment unexpectedly falls heading into April -5 v 5.7 forecast, -4.9 previous – GfK.
• SNB’s Maechler: Negative rates remain very important to SNB.
• EU tells Italy to step up economic reforms before next year’s elections.
• Mexico inflation (gas price hikes) rises at fastest pace in nearly 8 years; 5.29% v 5.25% forecast 4.71% previous.
• U.S. shares surrender gains as vote on Trump bill delayed
Looking Ahead — Economic Data (GMT)
• 21:45 New Zealand Trade — Imports* Feb 4.19b-previous
• 21:45 New Zealand Trade Balance* Feb -285.0m- previous
• 21:45 New Zealand Trade Balance YY* Feb -3.47b- previous
• 21:45 New Zealand Trade — Exports* Feb 3.91b- previous
• 23:00 Japan Reuters Tankan DI Mar 20- previous
• 23:50 Japan Foreign Bond Investment w/e -703.9b- previous
• 23:50 Japan Foreign Invest JP Stock w/e -722.7b- previous
• 00:30 Japan Nikkei Mfg PMI Mar 53.3- previous
Looking Ahead — Events, Other Releases (GMT)
• No Significant Events
Currency Summaries
EUR/USD is likely to find support at 1.0706 levels and currently trading at 1.0787 levels. The pair has made session high at 1.0793 and hit lows at 1.0772 levels. The euro dipped slightly against the U.S. dollar on Thursday as investors remained cautious after a vote on President Donald Trump’s healthcare bill was delayed, casting doubt over the prospects of Trump’s pro-growth policies. The U.S. House of Representatives had been scheduled to vote on the bill on Thursday, but leaders put off the vote after failing to find enough support among Republicans to pass it. Not passing the healthcare bill would be seen by many investors as pushing back the agenda of corporate tax cuts. The greenback soared to a 14-year peak after Trump’s election last year on expectations that he would cut corporate and other taxes and increase infrastructure spending, boosting economic growth. That faith has been shaken since the turn of the year, and the dollar has fallen against all of its major peers in response. The dollar traded in a tight range. The dollar index, which measures the greenback against a basket of six major currencies, was little changed at 99.757.
GBP/USD is supported in the range of 1.2435 levels and currently trading at 1.2516 levels. It reached session high at 1.2530 and dropped to session low at 1.2502 levels. Sterling hit a one-month high against the dollar on Thursday as sterling was boosted after stronger than expected UK retail sales data eased worries about weakening consumer sentiment. Sales rose by 1.4 percent in February from January, the official numbers showed, beating a 0.4 percent forecast ending a streak of three consecutive monthly declines. For the three months to February, this was still the biggest slide for retail sales in nearly seven years as higher fuel prices eroded shoppers’ disposable income and the Office for National Statistics said the monthly improvement was too little to offset the drag from previously weak demand. Sterling hit high at $1.2532, its highest since Feb. 24, before retreating slightly to trade at $1.2517 In the late US session, up 0.3 percent on the day.
USD/CAD is supported at 1.3300 levels and is trading at 1.3350 levels. It has made session high at 1.3352 and lows at 1.3319 levels. The Canadian dollar dipped slightly against its U.S. counterpart on Thursday as oil fell and dollar slightly firmed but the loonie traded in a narrow range after lawmakers postponed a vote on a healthcare bill seen as President Donald Trump’s first policy test. Delays in passing domestic legislation, including healthcare, are seen as likely to push back any new fiscal stimulus, which investors had anticipated would boost growth and possibly lead to faster than previously expected interest rate increases. Prices of oil, one of Canada’s major exports, struggled to recover from four-month lows amid investor concerns that OPEC-led supply cuts were not yet reducing record U.S. crude inventories. The Canadian dollar was last trading at C$1.3351 to the greenback, or 74.97 U.S. cents, slightly weaker than Wednesday’s close of C$1.3327, or 75.04 U.S. cents.
AUD/USD is supported around 0.7582 levels and currently trading at 0.7624 levels. It hit session high at 0.7650 and made session lows at 0.7621 levels. The Australian dollar declined modestly against US dollar on Thursday as investors unwounded carry trades while watching to see whether U.S. President Donald Trump can push through a healthcare bill, as failure could signal problems to come pursuing his economic agenda. Investors have become worried that if the White House fails at this hurdle, progress on fiscal stimulus and tax cuts might be derailed. The jitters have hurt risk sentiment globally and undermined commodity prices, which is bad for Australia. The Australian dollar was down 0.26 percent at $0.7657, after falling as low as $0.7640 the previous session. The Aussie is already down 0.6 percent this week, after a stellar 2 percent gain last week, as investors rushed to safe havens such as the yen, bonds and gold.
Equities Recap
European shares climbed higher on Thursday, led by travel and retail stocks, as investors grew more bullish ahead of a vote in Congress on the U.S. president’s healthcare bill.
UK’s benchmark FTSE 100 closed up by 0.2 percent, the pan-European FTSEurofirst 300 ended the day up by 0.75 percent, Germany’s Dax ended up by 1.2 percent, France’s CAC finished the day up by 0.7 percent.
Wall Street edged lower on Thursday after lawmakers postponed a vote on a healthcare bill seen as President Donald Trump’s first policy test.
Dow Jones closed down by 0.01 percent, S&P 500 ended down0.09 percent, Nasdaq finished the day down by 0.05 percent.
Treasuries Recap
U.S. Treasury prices fell on Thursday as investors waited for a vote by lawmakers on Friday to replace the Obamacare healthcare law, which is seen as a gauge of the Trump administration’s ability to implement near-term goals.
Benchmark 10-year U.S. Treasury note prices edged lower, with yields last at 2.412 percent after touching a more than three-week low of 2.375 percent Wednesday.
Commodities Recap
Gold slipped on Thursday as the dollar firmed, while markets waiting to see if U.S. President Donald Trump can push through a healthcare bill on Friday.
Spot gold was down 0.3 percent at $1,245.26 an ounce by 2:21 p.m. EDT (1821 GMT), retreating from an intraday peak of $1,253.12, its highest since Feb. 28.U.S. gold futures shed 0.3 percent to $1,246.60.
Oil prices dipped on Thursday, struggling to recover from four-month lows because of investor concerns that OPEC-led supply cuts were not yet reducing record U.S. crude inventories.
Brent crude oil prices settled down 8 cents, or 0.16 percent, at $50.56 a barrel. U.S. crude settled down 34 cents, or 0.71 percent, at $47.70.
FxWirePro 24.03.2017 00:06
