EUR rebounds towards 1.10

Tuesday, March 24, 2015

European equity markets rebounded from earlier losses this morning following robust manufacturing PMI data which improved market sentiment. Germany’s manufacturing PMI (preliminary) surged to 52.4 in March compared to 51.1 in February, while Eurozone’s manufacturing PMI (preliminary) rose to 51.9 in March compared to 51.0 in February, beating analysts’ expectations. The euro rebounded towards 1.10 against the dollar this morning.  However, ongoing uncertainty regarding the Greek debt issues continues to dominate the markets.

EURUSD surges towards 1.10 

EURUSD Curncy (EUR-USD X-RATE)   2015-03-24 08-38-39

In Asia, HSBC China’s Manufacturing PMI declined sharply to 49.2 in March from 50.7 in February, missing analysts’ expectations of 50.5 and hitting a 11-month low. The Hang Seng index retreated 0.4% below 24,400 and the Nikkei index tracked the downtrend, falling by 0.21% towards 19,700. The US equity markets gave back earlier gains and retreated in late trading yesterday as risk appetite was limited.

Crude oil prices consolidated within the recent range this morning. WTI front month futures hovered around $47/barrel and Brent front month futures held around $56/barrel. The release of the weekly API oil inventories report after the close of the trading session today could provide insight regarding the current levels of crude oil inventories. According to a recent Bloomberg survey, crude stocks are expected to have increased by 4.96 million barrels for the week ending 20th March, while gasoline and distillate stocks are estimated to have dropped by 2.0 million and 1.26 million barrels, respectively.

Precious metal prices edged higher this morning with gold trading above $1190/ounce and silver breaching above $17. Market participants will be watching for US New Home Sales data for February, the FHFA House price index as well as Richmond Fed manufacturing index in March.

XAU- Gold held around $1190

XAU Curncy (Gold Spot   $_Oz )  D 2015-03-24 08-39-09

   

Events for today:

 

0145

CN

Mar

HSBC Manufacturing PMI

0830

DE

Mar

Manufacturing and Services PMI (P)

0900

EZ

Mar

Manufacturing and Services PMI (P)

0930

UK

Feb

CPI &RPI

1230

UK

Feb

CPI

1300

US

Jan

FHFA House Price Index

1345

US

Mar

Markit Manufacturing PMI

1400

US

Feb

New Homes Sales

1400

US

Mar

Richmond Fed

 

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