Last session market review
The dollar index.dxy closed up 0.72 percent at 99.02. Spot gold closed down 0.22 percent at $1,620.90 an ounce. U.S. stocks rose, with the dow closing up more than 3 percent.
The rest of the day will focus on the UK and Canadian GDP, eurozone CPI, and the conference board’s consumer confidence index.
Fx: Eur/USD closed at 1.1046; The pound closed at 1.2412; The Australian dollar closed at 0.6170; The dollar closed at 107.74 yen; Us $1.4162; The dollar closed at 0.9580 Swiss francs.
Commodities: spot gold closed at $1,621.71 an ounce; Comex gold ended at $1,643.20 an ounce; Spot silver settled at $14.03 an ounce; Comex silver ended at $14.132 an ounce; Brent crude closed at $22.76 a barrel; NYMEX crude closed at $20.09 a barrel.
In the currency market
Euro: the dollar’s six-day rally against the dollar came to an abrupt end, closing down 1.1046, or 0.84%. On a technical level, the euro/dollar retreated further from the 61.8 percent retracement of the march sell-off and broke through the 50 percent retracement, with resistance at 1.1065. The 4-hour chart shows that despite the bullish slope of the 20 moving average, which is now above the 200 moving average, the pair is still subject to a mild bearish limit of the 100 moving average in the short term. Technical indicators have come down from overbought levels, momentum is still sliding towards the 100 level and RSI is now flat at around 54, suggesting market players are not yet ready to make a big move back into the dollar. However, the risks are skewed to the downside and could fall further below 1.0990.
Sterling: the pound fell for the first time in five sessions against the dollar, but remained above the 1.24 mark at 1.2412, down 0.35%. Technically, sterling/dollar traded around 1.2360 before the Asian session opened, with support at 1.2301, the 50 percent retracement of the march sell-off. The 4-hour chart shows the pair staying above the 20 and 100 moving averages, with the shorter moving averages still rising below the larger moving averages. Technical indicators have come down from oversold levels, but have so far remained above the midline, failing to confirm further declines ahead. The case for bearish sentiment is likely to strengthen after the Fibonacci level.
Yen: USD/jpy fell for the fifth day in a row, staying below the 108 level to close 0.14% lower at 107.74. Technically, dollar/yen has been consolidating for most of the past two sessions, just above the 38.2% retracement of its most recent rally. In the short term, the bullish potential seems limited as the currency pairs are spread throughout the day between the 100-200 moving averages, both of which lack directional strength, while the exchange rate is below the 20 firmly bearish moving averages. Technical indicators in the above time frame have rebounded from oversold levels, but RSI is flat around 37, with upside momentum weakening below the midline.
The stock market
U.S. and European stocks: European stocks extended gains and ended slightly higher Monday as investors continued to focus on the latest impact of the new outbreak. The pan-European Stoxx 600 indexes closed up 1.1 percent, erasing early losses. Germany’s DAX closed up 182.98 points, or 1.90%, at 9815.50. Britain’s FTSE 100 closed up 64.75 points, or 1.17%, at 5,576.00 on March 30. The French CAC-40 index ended March 30 up 27.03 points, or 0.62%, at 4378.51. Spain’s IBEX35 index closed down 77.90 points, or 1.15%, at 6,700.00 on March 30. Italy’s FTSE closed up 129.41 points, or 0.77%, at 16,952.00 on March 30. The euro Stoxx 50 index ended March 30 up 43.90 points, or 1.61%, at 2,772.55.
New York (ap) — stocks rose Monday after a strong rally last week as the United States expanded efforts to contain a new outbreak. The dow Jones industrial average rose 690.70 points, or 3.2%, to 22,327.48. The dow is up 20% from its previous low. The s and p 500 rose 3.4% to 2,626.65, while the Nasdaq composite index closed up 3.6% at 7,774.15, recovering more than 13%. Tech stocks such as Microsoft, Alphabet and Amazon led Wall Street higher. Microsoft is up 7 percent, Alphabet is up 3.3 percent and Amazon is up 3.4 percent.
The bond market
In the u.s., the yield on the benchmark 10-year Treasury note fell 6 basis points to about 0.66 percent, while the yield on the 30-year note fell 1.24 percent.
International spot gold Monday morning trading at $1,616.00 / oz, rose as high as $1,634.21 / oz, touched as low as $1606.26 / oz, closed at $1,621.71 / oz, down $3.53 or 0.22%.
COMEX June gold futures closed down $10.9, or 0.7 percent, at $1,643.20 an ounce.
Oil continued its slide on Monday as cities around the world announced home closures and consumer demand for gasoline continued to fall. U.S. WTI crude for April delivery fell $1.42, or 6.6 percent, to $20.09 a barrel after earlier hitting an 18-year low of $19.27. Us WTI crude fell 4.1 percent last week. Brent may futures were down $2.17, or 8.7 percent, at $22.76 a barrel. Brent crude fell 7.6 percent last week. Both are down more than 50% so far in March, heading for their worst month on record.