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America's Roundup: Dollar dips on China trade fears, Wall Street falls, Gold rises, Oil rebounds-May 10th,2019

Market Roundup

• Trump rattles saber at China ahead of make-or-break trade talks

• Fed's Bostic says scheduled tariff hike could fuel inflation

• Labour's Corbyn tells UK PM May: Move your Brexit red lines

• US Mar International Trade $, -50.0 bln, -50.2 bln forecast, -49.4 bln previous 

• US Mar Goods Trade Balance (R), -71.33 bln, -71.45 bln previous

• US 4 May, w/e Initial Jobless Claims, 228k, 220k forecast, 230k previous

• US 27 Apr, w/e Continued Jobless Claims, 1.684 mln, 1.670 mln forecast, 1.671 mln previous

• US Apr PPI Final Demand YY, 2.2%, 2.3% forecast, 2.2% previous

• US Apr PPI Final Demand MM, 0.2%, 0.2% forecast, 0.6% previous

• US Mar Wholesale Invt(y), R MM, -0.1%, 0.0% forecast, 0.0% previous

• US Mar Wholesale Sales MM, 2.3%, 0.2% forecast, 0.3% previous

• CA Mar Trade Balance C$, -3.21 bln, -2.45 bln forecast, -2.90 bln previous

Looking Ahead - Economic Data (GMT)

• May 9 23:30 Japan Mar All Household Spending YY, 1.7% forecast, 1.7% previous

• May 9 23:30 Japan Mar All Household Spending MM, 0.5% forecast, -2.0% previous

• May 9 22:45 New Zealand Apr Elec Card Retail Sale YY, 0.7% previous

Looking Ahead - Events, Other Releases (GMT)

• May 9 23:50 BoJ releases summary of opinions from board members at its April 24-25 policy meeting in Tokyo

• May 10 07:30 ECB board member Sabine Lautenschlager participates in a panel discussion at G7 2019 conference in Paris

• May 10 07:30 ECB policymaker and Bank of France governor Francois Villeroy opens a conference at the French central bank in Paris

• May 10 09:10 Riksbank First Deputy Governor Kerstin af Jochnick talks about developments in the payment market during the Stockholm Future Forum in Stockholm

• May 10 11:00 Riksbank meeting of the General Council in Stockholm

• May 10 12:30 Fed's Brainard speaks at Federal Reserve System Community Development Research Conference in Washington, D.C.

• May 10 13:08 Atlanta Fed President Raphael Bostic speaks on the economic outlook and monetary policy in Meridian, Mississippi

• May 10 14:00 New York Fed President John Williams speaks before the 21st Annual Bronx Bankers' Breakfast in Bronx, New York

• May 10 14:30 ECB board member Benoit Coeure participates in a panel discussion at G7 2019 Conference in Paris

Currency summaries

EUR/USD: The euro slipped lower against the U.S. dollar on Thursday, as investors dumped greenback and switched to safe-haven currencies, fearing the U.S.-China trade conflict would escalate. U.S. President Donald Trump warned on Thursday that, a trade deal with China was in serious danger, pushing investors away from riskier assets.The euro was up 0.22 percent at $1.1216. An index that tracks the dollar versus a basket of six major currencies was down 0.18 at 97.42. Immediate resistance can be seen at 1.1251 (Daily high), an upside break can trigger rise towards 1.1317 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.1183 (11 DMA), a break below could take the pair towards 1.1114 (Lower Bollinger Bands).

GBP/USD: The British pound edged lower against the dollar on Thursday, as doubts that Brexit negotiations between the ruling Conservative and opposition Labour parties about to collapse caused British pound to fall. Media report showed on Wednesday that, Brexit talks were about to fail. Mounting pressure on Prime Minister Theresa May to name a departure date.The pound fell as much as 0.3 percent to $1.2964, its lowest since April 30, before recovering to above $1.3010 by 1919 GMT. Immediate resistance can be seen at 1.3042 (9 DMA), an upside break can trigger rise towards 1.3088 (50 DMA).On the downside, immediate support is seen at 1.2957 (200 DMA), a break below could take the pair towards 1.2900 (Psychological level).

USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Thursday, rebounding from an earlier two-week low ahead of domestic jobs data and as the U.S.-China trade conflict weighed on the greenback against other safe-haven currencies. Canada's trade deficit in March shrank slightly to C$3.21 billion as higher energy shipments helped exports increase at a slightly faster rate than imports. At (2003 GMT), the Canadian dollar was trading 0.1% higher at 1.3461 to the greenback, or 74.29 U.S. cents. Earlier in the session, the currency touched its weakest level since April 25 at 1.3505. Immediate resistance can be seen at 1.3500 (Psychological Level), an upside break can trigger rise towards 1.3547 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.3451 (9 DMA), a break below could take the pair towards 1.3418 (21 DMA).

USD/JPY: The dollar weakened against the Japanese yen on Thursday, as investor’s switched to safe Japanese yen, fearing the U.S.-China trade conflict could escalate further. Two days of negotiations began in Washington on Thursday, and traders are waiting to see whether Chinese and U.S. officials can salvage a deal to prevent more U.S. tariff increases. At (GMT 2033) the dollar was trading 0.32 percent lower versus the Japanese yen at 109.74. Strong resistance can be seen at 110.39 (5 DMA), an upside break can trigger rise towards 111.00 (11 DMA).On the downside, immediate support is seen at 109.50 (Session Low), a break below could take the pair towards 109.00 (Psychological level).
 
Equities Recap

European shares slid on Thursday, with investors exiting positions in favour of safer assets as they waited to see if U.S.-China talks will yield tangible results and help avert worsening trade ties which threaten to slow global growth.

UK's benchmark FTSE 100 closed down by 1.1 percent, the pan-European FTSEurofirst 300 ended the day down by 1.76 percent, Germany's Dax ended down by 1.8 percent, France’s CAC finished the day down by 2 percent.

Wall Street's main indexes fell on   Thursday, as investors looked ahead to critical trade negotiations between the United States and China.

Dow Jones closed down by 0.56 percent, S&P 500 ended down by 0.31 percent, Nasdaq finished the day down by 0.40 percent.

Treasuries Recap

U.S. Treasury yields fell on Thursday, with longer-dated yields hitting five-week lows, as China and the United States were set to resume tense trade talks just hours ahead of the Trump administration's plan to raise tariffs on Chinese imports.

In afternoon U.S. trading, the yields on benchmark 10-year Treasury notes   were down 2.6 basis points at 2.457% after hitting a five-week low at 2.422%

Commodities Recap

Gold prices rose on Thursday, supported by a weaker dollar and as investors sought safe-haven assets after U.S. President Donald Trump warned a trade deal with China was in danger, sending global stocks lower.

Spot gold gained 0.3 percent at $1,284.55 per ounce as of 1:57 p.m. EDT (1757 GMT), having climbed to its highest since April 15 at $1,291.39 on Wednesday. U.S. gold futures settled up 0.3 percent at $1,285.20 an ounce.

Brent oil futures settled slightly higher on Thursday, rebounding from a drop after U.S. President Donald Trump revived investor hopes that the United States might not raise tariffs on Chinese imports, a step that could hit economic growth and crimp oil demand.

Brent   settled 2 cents higher at $70.39 a barrel, rebounding from a session low of $69.40 a barrel. U.S. West Texas Intermediate (WTI) crude futures   settled down 42 cents at $61.70 per barrel.
 

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