27 Mar: Markets steady after Congress’ failure to pass the healthcare bill. Article 50 to be the main event this week.

By | March 27, 2017

 

Markets were choppy but generally rangebound on Friday despite the failure to make any progress on Donald Trump’s healthcare bill. In terms of data, the US durable goods orders jumped 1.7% in February versus expectation of 1.2% while the Euro was underpinned by some solid PMI data. The EU PMI manufacturing rose to 56.2 in March, up from 55.4 and beat expectation of 55.3, while the EU PMI services rose to 56.5, up from 55.5, also beating expectations of 55.3.  The PMI composite rose to 56.7, hitting the highest level in six years, since April 2011. The German PMI manufacturing rose to 58.3, up from 56.8, beat expectation of 56.5. German PMI services rose to 55.6, up from 54.4 and beat expectation of 54.5.

The coming week will be another busy one, particularly with Fed speakers who will be active almost every day in providing conflicting views as to when we should expect the next US rate hike. The other main event will be the triggering of Article 50 for the UK to formalise the Brexit negotiations, which could mean a wild week for Cable. Elsewhere, Monday will look to the German IFO Business Climate/Expectations for inspiration along with assorted central bank speakers. Tuesday and Wednesdays will both be busy, with a fair bit of secondary US data and more Fed speakers. The highlights on Thursday will include the German CPI and the Q4 US GDP, while Friday will include the China Mfg/Non-Mfg PMIs, the UK Q4 GDP and the US Personal Income/Spending for March, the Chicago Purchasing Managers index   and Michigan Consumer Sentiment Index

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EURUSD: Rangebound ahead of the IFO and several EU/US central bank speakers today

USDJPY: Rangebound, but looking heavy above last week’s trend lows

GBPUSD: Rangebound. Article 50 coming up on Wednesday

AUDUSD: Heavy. China Manufacturing PMIs this week

NZDUSD: Rangebound

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US STOCKS: Recovered early losses as the US Healthcare Bill failed to pass through Congress

ASX SPI: The ASX had a solid range on Friday but overall looks set to start the week in choppy fashion below the 2 year highs seen last Monday.

METALS: Gold steady; Silver a little higher

OIL (WTI): Choppy above trend lows

The levels in this table are a guide only. For more in depth analysis please go the “Articles” tab at the top of the page and scroll down.

CURRENCIES
EURUSD: 1.0797
Res  1.0830  1.0875  1.0900
Sup  1.0760  1.0745  1.0715
USDJPY: 111.32
Res  111.60  111.85  112.25
Sup  111.00  110.60  110.10
GBPUSD: 1.2474
Res  1.2510  1.2530  1.2570
Sup  1.2460  1.2425  1.2410
USDCHF: 0.9913
Res  0.9940  0.9960  1.0000
Sup  0.9880  0.9860  0.9835
AUDUSD: 0.7622
Res  0.7640  0.7670  0.7700
Sup  0.7605  0.7590  0.7560
NZDUSD: 0.7028
Res  0.7045  0.7075  0.7090
Sup  0.7010  0.6990  0.6965
INDICES / COMMODITIES
S+P: 2342
Res  2356  2370  2378
Sup  2332  2320  2314
DJI: 20560
Res  20700  20765  20840
Sup  20475  20380  20265
ASX SPI: 5735
Res  5750  5762  5770
Sup  5716  5700  5680
GOLD: 1245
Res  1252  1258  1264
Sup  1240  1236  1230
SILVER: 17.76
Res  17.85  18.00  18.10
Sup  17.60  17.45  17.30
OIL (WTI): 48.11
Res  48.70  49.45  50.10
Sup  47.50  47.05  46.00