Market Roundup
• US Feb Durable Goods -2.8 vs. forecast -2.9%, prior +4.2% (rev from +4.7%).
• US Feb Durables ex-Trans -1.0% vs. forecast -0.2%, prior +1.2% (rev from +1.7%).
• US Initial Jobless Claims 265k vs. forecast 268k, prior 259k (rev from 265k).
• US Continuing Claims 2.18m vs forecast 2.23m, prior 2.22m (rev from 2.23m).
• US March Markit Services PMI 51.0 vs. prior 49.7, Comp Flash PMI 51.1 vs. prior 50.0.
• US KC Fed March MFG -14 vs. prior -8; Composite index -6 vs. prior -12.
• Fed’s Bullard: March FOMC forecasts suggest another rate hike ‘may not be far off’.
• Fed’s Bullard: Holding policy steady puts more weight on global, U.S. growth downgrade.
• Fed’s Bullard: Now at a point where U.S. inflation measures headed higher.
• China Central Bank Governor says wants to increase global coordination on exchange rate policies.
• BRL nation jobless rate 9.5% in 3 months through Jan vs. forecast 9.3% and prior 9.0%.
• Turkish CB cuts overnight lending rate to 10.5% from 10.75%.
• CBRT: To maintain tight monetary policy considering inflation expectations & pricing behavior.
Looking Ahead – Economic Data (GMT)
• 23:30 Japan Feb CPI Core Nationwide y/y; forecast 0.1%, prior 0.0%
• 23:30 Japan Feb CPI Core Tokyo y/y; forecast -+0.2%, prior -0.1%
• 23:50 Japan Foreign bond/stock investments w/e Mar 18
Looking Ahead – Events, Other Releases (GMT)
• No Significant Events
Currency Summaries
EUR/USD is likely to find support at 1.1149 levels and currently trading at 1.1179 levels. The pair has made session high at 1.1187 and hit lows at 1.1147 levels. The U.S. dollar gained against the euro on Thursday as investors expected for two U.S. interest-rate hikes this year from the Federal Reserve. The dollar modestly gained in early North American trading following data showing a fall in durable goods orders and a slight uptick in the number of Americans filing for unemployment benefits, but remained higher on the day. The dollar index was last up 0.2 percent to 96.266. It has risen about 1.2 percent so far this week, its second-best weekly gain in four months. The Commerce Department said orders for durable goods, declined 2.8 percent last month after increasing 4.2 percent in January. In a separate report, the Labor Department said initial claims for state unemployment benefits rose 6,000 to a seasonally adjusted 265,000 for the week ended March 19.
GBP/USD is supported in the range of 1.4115 currently trading at 1.4152 levels. It reached session high at 1.4182 and hit low at 1.4101 levels. The cable fell from 1.4155 in early US session towards 1.4102 levels, after US jobless claims data in the US market which came at better than expected reading. Reactions within the ruling Conservative Party and the reaction to Tuesday's bomb attacks in Brussels have driven an almost 2 percent fall in sterling in trade-weighted terms this week. But after those initial blows, spot rates for the pound made a minimal recovery, leaving it flat on the day at $1.4150 and 0.4 percent higher at 78.87 pence per euro. Meanwhile, British retail sales data showed consumers are still driving the country's recovery despite a gloomier outlook for the economy and the approach of the European Union membership referendum, figures released on Thursday showed. The Office for National Statistics said retail sales volumes dropped 0.4 percent last month after a 2.3 percent surge in January.
USD/CAD is supported at 1.3215 levels and is trading at 1.3240 levels. It has made session high at 1.3293 and lows at 1.3219 levels. The Canadian dollar weakened to a fresh one-week low against its U.S. counterpart on Thursday as lower oil prices weighed, while Federal Reserve rate hike speculation added to pressure on commodities related currencies. The currency has weakened 2.8 percent since touching last week its strongest in nearly five months at C$1.2924. The greenback climbed for a fifth consecutive day against a basket of major currencies as investors moved to price in the possibility of two U.S. rate hikes this year. Oil headed for its biggest weekly slide in two months, dented by record-high stockpiles in the United States and a stronger dollar. The dollar, meanwhile, erased early gains that made oil and other commodities denominated in the greenback less affordable to holders of the euro and other currencies. The currency has weakened 2.8 percent since touching last week its strongest in nearly five months at C$1.2924.
AUD/USD is supported around 0.7526 levels and currently trading at 0.7582 levels. It hit session high at 0.7600 and made session lows at 0.7565 levels. The Australian dollar declined against US dollar under pressure on Thursday after suffering its biggest one-day fall in nearly a month as a broadly firmer greenback took a toll on commodity prices. Oil and copper fell overnight, while iron ore also slipped, prompting investors to lighten up on a currency that had been on a tear recently. Even with Wednesday's 1.2 percent fall, the Aussie is still up around 5 percent this month. It last stood at $0.7520, down 0.3 percent on the day and pulling further away from an 8-1/2 month high of $0.7681 set on Friday. Meanwhile the greenback found traction this week after a string of Federal Reserve officials raised the prospect of a hike in U.S. interest rates as early as next month.
Equities Recap
European equities fell for a fourth straight session on Thursday, weighed down by a drop in the shares of major mining and energy companies, while fashion retailer also slumped.
Britain's blue-chip FTSE 100 index closed down by 1.3 percent, France's benchmark CAC-40 index closed down by 1.9 percent, Germany's DAX ended down 1.6 percent, meanwhile the pan-European Eurofirst 300 index was down by 1.36 percent.
Wall Street stocks were mostly slightly lower on Thursday as dollar strength damaged oil and commodity share prices and financials weakened, threatening to end the S&P 500's five-week winning streak.
Dow Jones closed up by 0.08 percent, S&P 500 ended down by 0.04 percent, Nasdaq finished the day up by 0.09 percent.
Treasuries Recap
U.S. Treasury yields ended higher in light trading on Thursday as investors continued to evaluate when the Federal Reserve is next likely to raise interest rates.
U.S. benchmark 10-year Treasury notes fell 8/32 in price to yield 1.90 percent, up from 1.88 percent Wednesday.
Commodities Recap
Oil prices were down slightly by late Thursday afternoon, paring much of the day's losses, after a renewed drop in the U.S. oil rig count offset weaker sentiment caused by record high U.S. crude stockpiles.
U.S. crude's front-month contract 1 settled down 33 cents at $39.46 a barrel, recovering from a session low of $38.33. For the week, it rose two cents, finishing up for a sixth straight week.
Brent's front-month settled down 3 cents on the day at $40.44 a barrel, after an earlier drop to $39.22. For the week, it fell 76 cents, or nearly 2 percent, its first decline in six weeks.
Spot gold rebounded after touching a four-week low on Thursday, but prices were still poised for their biggest weekly loss since November as the prospect of more U.S. interest rate rises has bolstered the dollar.
Spot gold slipped 0.6 percent in early trade on Thursday to $1,212.20 an ounce, its weakest since Feb. 26, before rebounding to $1,221.95, up 0.2 percent, by 3:10 p.m. EST (1910 GMT).
U.S. gold settled down 0.2 percent to $1,221.60 an ounce.
The material has been provided by InstaForex Company – www.instaforex.com