Friday 25th March: European Open Briefing

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Friday 25th March: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei up 0.65 %, Shanghai Composite gained 0.10 %, Hang Seng and ASX 200 closed
  • Commodities: Gold at $1213.80 (-0.25 %), Silver at $15.22 (-0.40 %), WTI Oil at $39.60 (-0.50 %), Brent Oil at $40.45 (+0.02 %)
  • Rates: US 10 year yield at 1.90, UK 10 year yield at 1.48, German 10 year yield at 0.18

News & Data:

  • Japan CPI (YoY) Feb: 0.3% (exp 0.3% prev 0.0%)
  • Japan CPI Ex-Fresh Food (YoY) Feb: 0.0% (exp 0.0% prev 0.0%)
  • Japan CPI Ex-Fresh Food & Energy (YoY) Feb: 0.8% (exp 0.8% prev 0.7%)
  • Oil steadies as U.S. rig count drop offsets stockpile worry – RTRS
  • Japan consumer inflation flat, keeps BOJ under pressure – RTRS
  • Dollar poised for weekly gain after Fed officials signal rate hikes – RTRS

Markets Update:

The Nikkei and Shanghai Composite rose overnight, while Hong Kong and Australian markets were closed. Most European markets as well as US and Canadian markets will be closed today for the Good Friday holiday, so flows are likely to remain light. Some volatility can be expected at 12:30, when the US will release its latest GDP numbers. The US economy is expected to have grown 1.0 % quarter-on-quarter

In the Asian session, the US Dollar extended gains against all other major currencies. EUR/USD fell from 1.1180 to 1.1150 and could test the 1.1060 support level soon. GBP/USD declined from 1.4160 to 1.4110 overnight and while 1.4050 support held yesterday, techs remain bearish and further losses seem likely. USD/JPY rose overnight, supported by the rally in the Nikkei. The pair reached a high of 113.30, where momentum waned and it fell eventually back to 113.00. Resistance is now seen at 113.80, followed by 114.20.

AUD/USD declined from 0.7530 in the early Asian session to a low of 0.7510 after the Tokyo open. The key support levels are 0.7480 and 0.7415, while resistance lies at 0.7580 and 0.7640. Similar price action was seen in NZD/USD, which fell from 0.6705 to 0.6680 overnight.

Upcoming Events:

  • 06:30 GMT – French GDP
  • 12:30 GMT – US GDP
  • 19:30 GMT – CFTC COT Positioning Report

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