US Stock Futures Hit Limit Up; Dollar Falls

Equities

Major US stock index futures rose sharply today to hit the first circuit breaker at 5%. The Federal Reserve unleashed new measures to combat the coronavirus effect on the US economy. The Fed expressed the commitment to buy assets in the amounts needed to, rather than committing to a certain amount. On the other hand, congress failed to approve a stimulus package for the second time, while Trump administration is pushing further to make it done. The Dow Jones Industrial Average futures rose to 19384, the S&P500 futures rallied to 2330, and Nasdaq futures jumped to 7363.

USD

The dollar index, which measures the greenback against a basket of major currencies, drifted lower to 101.28 as the Fed introduced fresh measures that will increase the dollar supply. Meanwhile, the European currencies such as the Euro and Pound, which account for almost 70% of the dollar index basket, pushed higher on encouraging manufacturing PM. The preliminary March manufacturing PMI in the Eurozone and the United Kingdom were better than estimates, while the preliminary March services PMI came in well below estimates. The EURUSD rallied to $1.0865, and the GBPUSD ascended to $1.1723.

Metals

Gold prices soared supported by the Fed's new stimulus package. The Fed announced an open-ended asset purchase program that would allow the Fed to buy assets as much as needed to support the economy. The price of a gold ounce rallied to a two-week high of $1600, the price of a silver ounce advanced to $14.11, and palladium futures rose to $1745.

Oil

Oil prices surged as the Federal Reserve ramped up its support to the economy. The Fed aims at reducing the impact of the coronavirus outbreak on the world's largest economy. However, the price war between the top oil producers remains a hurdle for a healthy recovery in prices. The West Texas Intermediate crude futures rose to $24.97, and Brent futures climbed to $28.58.

Major Economic Events

Disclaimer 

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