EURUSD remains under pressure falling towards 1.08

Friday, March 27, 2015

European equities rebounded in early trade this morning, following a sharp sell-off across the markets yesterday. The CAC, DAX and IBEX gained between 0.3% and 0.7% this morning. However, the euro came under renewed pressure retreating towards 1.08 against the US dollar. The recent decline of the euro has been the fastest and steepest since its creation. ECB’s President Mario Draghi reported yesterday that he is confident that the current bond buying programme will hit its targets as policy makers try to tackle deflation.

EURUSD retreats towards 1.08

EURUSD Curncy (EUR-USD X-RATE)  2015-03-27 08-28-53

Asian equity markets extended losses overnight, tracking the downside momentum across the US equities. The Nikkei index declined sharply by 0.95% to end the session at 19,285.63, while the Hang Seng index dropped slightly towards 24,485. Japanese government bonds yields have been close to zero for months.

The USD index climbed higher towards 98.0 against a basket of currencies ahead of the release of key US economic data. Investors will be keeping an eye on the release of the US GDP data as well as personal consumption figures for Q4 2014. Market participants will be watching for the Thomson Reuters/Michigan Survey for an insight regarding the current market conditions and expectations.  

USD index rallies strongly towards 98.0

DXY Curncy (DOLLAR INDEX SPOT)   2015-03-27 09-04-40

Crude oil prices gave back yesterday’s gains and reversed lower this morning. WTI front month futures declined over 2.2% towards $50 per barrel and Brent front month futures retreated over 2% below $58 per barrel. Precious metals slid lower this morning with gold hovering below $1,200/ounce. Silver fell to retest $17.

WTI front month futures- LME Copper 3M futures

CLK5 Comdty (WTI CRUDE FUTURE  M 2015-03-27 09-08-16

In company news, Lafarge SA and Holcim Ltd agreed on new merger terms to create the world’s biggest cement company, according to Bloomberg.

  

Events for today: 

0700

DE

Feb

Import Price Index

1230

US

Q4

Personal Consumption

1230

US

Q4

GDP

1400

US

Mar

Michigan Survey

All times UK Local Time

 

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