News

Dollar Rebounds After Sharp Plunge; Stock Futures Trim Gains

USD

The dollar index, which measures the greenback against a basket of major currencies, settled lower for the third consecutive day closing at 99.46 following a dramatic surge in jobless claims. The coronavirus outbreak forced companies to lay off workers leading to a rise in weekly initial jobless claims to a record high of 3.283 million. This spike will force policymakers to reassess their expectations for the current economic breakdown. However, the significant weakness triggered some profit-taking, and the dollar managed to trim losses as the European session started. The EUR/USD fell to $1.10 after trading at a ten-day high of $1.1086, and the GBPUSD eased to $1.2143 after touching a high of $1.2305 overnight.

Equities

US stock-index futures extended gains supported by expansive fiscal and monetary measures. Since the Fed announced its commitment to buy "as much as needed" assets to support the economy, the stock market rallied to the upside. Moreover, market participants are looking forward to the approval of the Coronavirus stimulus bill that will aim at helping unemployed people and affected industries. The Dow Jones Industrial Average futures rose to 22449, the S&P500 futures edged higher to 2618, and Nasdaq futures advanced to 7893.

Metals

Gold prices continued to trade sideways awaiting fresh drivers. During the Asian session, the spot price of a gold ounce dipped to $1612, paring the gains earned yesterday. Meanwhile, the price of a silver ounce held steady near $14.50, and palladium futures hovered near $2250.

Oil

Oil prices remained soft despite the measures by governments and central banks to ease the impact of the coronavirus on the markets. The significantly falling demand and the price war between the top oil producers continued to weigh on the price. The West Texas Intermediate crude futures fell to $22.59, and Brent futures dipped to $25.75.

Major Economic Events

GMT Country Event Expectation Previous

12:30

US

Core PCE Price Index (YoY) (Feb)

1.7%

1.6%

12:30

US

Personal Income (MoM) (Feb)

0.4%

0.6%

12:30

US

Personal Spending (MoM) (Feb)

0.2%

0.2%

14:00

US

Michigan Consumer Sentiment (Mar)

90.0

95.9

14:00

US

Michigan Inflation Expectations (Mar)

2.3%

2.3%

17:00

US

U.S. Baker Hughes Oil Rig Count

-

664

Disclaimer 

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