China Economic Data Delivers More Bad News, While COVID-19 Updates Provides Early Support

Earlier in the Day:

It was a busy start to the day on the economic calendar, with China numbers in the spotlight.

Outside of the numbers, COVID-19 related news and updates from the U.S on lockdown measures continued to influence.

News of a new drug, developed to combat COVID-19, showing signs of being able to combat the virus, delivered strong support early in the session.

On Thursday, the total number of coronavirus cases across France, Germany, Italy, and Spain rose by 26,027 to 656,614. On Wednesday, there had been a rise of 18,526 to 630,587.

In the U.S, the total number of cases increased by 31,292 to 675,640, taking the total number of cases to 2,178,149. On Wednesday, the U.S had reported 30,462 new cases.

The Key take away from the numbers was a spike in new cases reported in France and a slight upward trend from the U.S.

France reported 17,164 new cases on Thursday, which was up from 18,526 on Wednesday and 15,595 on Tuesday.

Out of China

It was a data deluge this morning. Key stats included 1^st quarter GDP numbers and March retail sales and industrial production figures.

In the 1^st quarter, the economy contracted by 9.8%, quarter-on-quarter, following 1.5% growth in the 4^th quarter. Economists had forecast a contraction of 9.9%.

Year-on-year, the economy contracted by 6.8%, following 6.0% growth in the 4^th quarter. Economists had forecast a contraction of 6.5%.

In March, industrial production fell by 1.1%, year-on-year, which was better than a forecasted 7.3% slide. In February, industrial production had slumped by 13.5%.

Year-on-year, retail sales saw a further decline in March, with sales tumbling by 15.8%. In February, retail sales had fallen by 20.5%. Economists had forecast a 10% slide.

The Aussie Dollar moved from $0.63802 to $0.63709 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.73% to $0.6373.

Elsewhere

The Japanese Yen was up by 0.19% to ¥107.72 against the U.S Dollar, with the Kiwi Dollar up by 0.77% to $0.6014.

The Day Ahead:

For the EUR

Its a relatively quiet day ahead on the economic calendar. Finalized March inflation figures for the Eurozone are due out later this morning.

Deflationary pressures are expected to lead to downward revisions to prelims, which would be EUR negative.

Market risk sentiment and the latest coronavirus numbers and updates from member states on lockdown measures will likely overshadow the numbers, however.

Talks by the U.S President of a phased easing of lockdown measures weighed on the Dollar early in the day.

At the time of writing, the EUR was up by 0.27% to $1.0869.

For the Pound

It’s a quiet day ahead on the economic calendar, with no material stats due out to provide the Pound with direction.

Risk appetite in the day will ultimately dictate the direction of the Pound.

At the time of writing, the Pound was up by 0.42% to $1.2509, with risk appetite providing early support.

Across the Pond

It’s a particularly quiet day ahead on the U.S economic calendar, with no material stats due out to spook the markets.

The lack of stats will leave coronavirus numbers and chatter from Capitol Hill in focus. Through the early part of the day, hopes of a near-term end to lockdown measures pinned the back the Dollar.

The Dollar Spot Index was down by 0.29% to 99.739 at the time of writing.

For the Loonie

It’s a relatively quiet day on the economic calendar, with February’s securities purchase figures due out later today.

We’re unlikely to see too much influence from the figures, however, with risk sentiment the key driver.

Talks of a phased easing of lockdown measures were risk positive and would support a much-needed pickup in demand for crude oil.

The Loonie was up by 0.43% to C$1.4021 against the U.S Dollar, at the time of writing.