News

Dollar Index Edges higher Ahead of US Jobs Data

USD

The dollar index, which measures the greenback against a basket of major currencies, extended gains to trade at a one-week high of 100.62. The buck rallied despite the rise in initial jobless claims to a record high of 6.648 million as the pandemic continues to suspend the economic activity. Market participants are looking forward to the US March jobs report that will be published later today. Currently, the dollar is the strongest across the currency board where the EURUSD dropped to $1.0792, the GBPUSD dipped to $1.2324, and the USDJPY edged higher to 108.28.

Equities

Major US stock index futures edged higher trimming earlier losses. Stock benchmarks earned a boost from Trump's announcement that Russia and Saudi Arabia are willing to cut production to offset the drop in demand due to the Coronavirus outbreak. The latter's statement was positive for the oil and gas sector, which had a tough quarter. During the Asian session, stock index futures pared partial gains amid doubts that OPEC+ will reach a deal. The Dow Jones Industrial Average futures fell to 20908, the S&P500 futures declined to 2473, and Nasdaq futures dropped to 7514.

Metals

Gold prices settled higher for the second consecutive day as investors favor safety assets amid a plunge in economic indicators around the globe. The spot price of a gold ounce rose to $1620, the price of a silver ounce bounced to $14.54, while palladium futures held steady near $2150.

Oil

Oil prices soared as Trump announced that Saudi Arabia and Russia are looking forward to cutting production by 10 million barrels per day. The West Texas Intermediate crude futures rallied to $27.32, and Brent futures surged to $36.16. However, oil benchmarks trimmed gains as Putin stated that he didn't have any call with Saudi concerning output cut, leading investors to doubt reaching a deal to stabilize the market.

Major Economic Events

GMT Country Event Expectation Previous

8:00

EZ

 Services PMI (Mar)

28.4

52.6

8:30

UK

 Services PMI (Mar)

34.8

53.2

9:00

EZ

 Retail Sales (MoM) (Feb)

0.1%

0.6%

12:30

US

 Average Hourly Earnings (YoY) (YoY) (Mar)

3.0%

3.0%

12:30

US

 Unemployment Rate (Mar)

3.8%

3.5%

12:30

US

 Nonfarm Payrolls (Mar)

-100

273

13:45

US

 Services PMI (Mar)

39.1

49.4

14:00

US

 ISM Non-Manufacturing PMI (Mar)

44

57.3

17:00

US

 U.S. Baker Hughes Oil Rig Count

-

624

Disclaimer 

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