Major US stock-index futures recovered from yesterday's losses amid hopes of restoring the economic activity as soon as possible. President Donald Trump will announce guidelines on reopening the US economy, citing that the country has passed the peak of the virus. He added that some states could reopen before the 1st of May. Stock benchmarks were able to trim losses after a significant plunge following sluggish economic data showing the impact of the Coronavirus on the US economy. The Dow Jones Industrial Average futures rose to 23657, the S&P500 futures rallied to 2805, and Nasdaq futures advanced to 8694.
The dollar index, which measures the greenback against a basket of major currencies, raced higher to 100.00 level as weak US economic data fueled demand for safety. The US Retail Sales plunged 8.7% in March, the worst on record, and the Manufacturing activity in New York slumped to a historic low. Also, Manufacturing and Industrial Production fell sharply. The EURUSD tumbled to $1.0856, the GBPUSD faltered at a one-month high of $1.2647, falling to $1.2437, and the AUDUSD ended its winning streak dropping to $0.6263 despite upbeat employment data. Market participants are looking forward to the additional economic data to come out later today, among them the US initial jobless claims.
The Canadian dollar plummeted against rivals following the Bank of Canada monetary policy meeting. The bank kept interest rates unchanged at 0.25% but launched additional quantitative easing in provincial and corporate bonds. The bank could adjust the scale or duration of the program aiming at fighting the effects of Covid19 on the Canadian economy. On the other hand, the extended fall in oil prices weighed on the Canadian dollar. The USDCAD rose to a one-week high of 1.4136, the EURCAD edged higher to 1.5412, and the CADJPY fell sharply to 77.22.
Gold prices paused upside rally as the dollar strengthened, but the soft economic outlook kept the precious metal at a bid. The price of a gold ounce is trading in a range between a low of $1708 and a high of $1731. Meanwhile, the price of a silver ounce fell to $15.30, and palladium futures hovered near $2150.
Oil prices extended losses on the gloomy demand outlook. The International Energy Agency lowered the demand forecasts for 2020 as the lockdown continues to fight Covid19 spread. On the other hand, the US Energy Information Administration reported a record buildup in US crude inventories for the second week. Inventories rose by 19.248 million barrels. The Crude oil futures May contract fell to an eighteen-year low of $19.19, the June contract dropped to $25.83, and Brent futures June contract tumbled to $27.15.
Major Economic Events
|9:00||EZ||Industrial Production (MoM) (Feb)||-0.2%||2.3%|
|12:30||US||Building Permits (Mar)||1.300||1.452|
|12:30||US||Housing Starts (Mar)||1.300||1.599|
|12:30||US||Initial Jobless Claims||5.105||6.606|
|12:30||US||Philadelphia Fed Manufacturing Index (Apr)||-30.0||-12.7|
|12:30||CA||Manufacturing Sales (MoM) (Feb)||-0.10%||-0.20%|
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