Dollar Rebounds After Sharp Plunge; Stock Futures Trim Gains
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
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.
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