Market Roundup
• US Jobless Claims 4-Week Avg 4,173.50K, 5,033.25K previous
• US Continuing Jobless Claims 22,647K, forecast, 17,992K previous
• US Initial Jobless Claims3,169K, 3,000K forecast, 3,839K previous
• US Nonfarm Productivity (QoQ) (Q1) -2.5%, -5.5% forecast,1.2% previous
• Russia April CPI (MoM) 0.0%, 0.8% forecast, 0.6% previous
• Russia April CPI (YoY) 0.0%, 3.1% forecast,2.5% previous
• Canada April Ivey PMI 22.8, 25.0 forecast, 26.0 previous
• Canada April Ivey PMI n.s.a 22.8, 28.2 previous
• US March Consumer Credit 15.00B forecast, 22.33B previous
Looking Ahead - Economic Data (GMT)
• 23:30 Japan March Overall wage income of employees 0.7% previous
• 23:30 Japan March Household Spending (YoY) -6.7%,-0.3% previous
• 23:30 Japan March Overtime Pay (YoY) 1.0% previous
• 00:30 Japan April Services PMI 33.8 previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency summaries
EUR/USD: The euro strengthened against dollar on Thursday as investors booked profits on the greenbacks gains this week before Friday’s U.S. nonfarm payrolls report for April, which could show massive job losses amid a COVID-19 pandemic that has ravaged the global economy. Immediate resistance can be seen at 1.0824 (38.2% fib), an upside break can trigger rise towards 1.0873 (21 DMA).On the downside, immediate support is seen at 1.0750 (23.6% fib), a break below could take the pair towards 1.0722 (24th March low).
GBP/USD: The pound rose against the dollar after a Bank of England policy announcement on Thursday, but the rally was short-lived and more the result of the pound’s recent weakness than any surprises from the central bank. The Bank of England held rates steady and announced no further stimulus, as was broadly expected, and said it was ready to take fresh action to counter the economic fallout from the coronavirus pandemic. Immediate resistance can be seen at 1.2414 (5 DMA), an upside break can trigger rise towards 1.2437 (21 DMA).On the downside, immediate support is seen at 1.2308 (Daily low), a break below could take the pair towards 1.2269 (Lower BB).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as oil rallied and data showing an unexpected increase in Chinese exports raised hopes for the global economy, with the loonie rebounding from an earlier two-week low. World shares rose as the Chinese data stoked speculation China could recover from its coronavirus lockdown quicker than first thought and support global growth in the process. Immediate resistance can be seen at 1.4221 (Higher BB), an upside break can trigger rise towards 1.4263 (April 21st high).On the downside, immediate support is seen at 1.3947 (Daily low ), a break below could take the pair towards 1.3850 (Lower BB ).
USD/JPY: The dollar dipped against the Japanese yen on Thursday as sombre economic data heightened fears over global growth increasing demand for Japanese yen. Data showed millions more Americans took unemployment aid from the government in the latest week.U.S. weekly jobless claims totaled a seasonally adjusted 3.169 million for the week ended May 2, down from a revised 3.846 million in the prior week. Economists polled had forecast 3.0 million claims in the last week. Immediate resistance can be seen at 106.80 (5 DMA), an upside break can trigger rise towards 107.00 (9 DMA ).On the downside, immediate support is seen at 106.20 (Lower BB), a break below could take the pair towards 106.00 (Psychological level).
Equities Recap
European shares closed higher on Thursday as a surprise rise in China’s exports suggested some resilience in global demand, while a batch of mostly strong earnings also provided cheer.
The UK's benchmark FTSE 100 closed up by 1.40percent, Germany's Dax ended up by 1.44 percent, and France’s CAC finished the up by 1.54 percent.
Wall Street’s indexes jumped on Thursday, with the Nasdaq turning positive for the year, following a clutch of upbeat earnings reports led by PayPal as investors looked past more weak jobs data caused by the coronavirus-induced economic downturn.
Dow Jones closed up at 0.89 percent, S&P 500 ended up 1.15 percent, Nasdaq finished the day up by 1.41 percent.
Treasury Recap
U.S. Treasury yields held just below three-week highs on Thursday as investors continued to weigh the impact of the Treasury Department increasing its supply of longer-dated debt against continuing Federal Reserve bond purchases.
Benchmark 10-year yields fell 2 basis points on the day to 0.6932%, after reaching 0.7430% on Wednesday, the highest since April 15.
Commodities Recap
Gold jumped 2% on Thursday after a string of weak economic data, including surging unemployment in the United States, heightened fears over a coronovirus-induced global downturn, while investors turned their attention to nonfarm payrolls for further cues.
Spot gold was up 2.1% to $1,720.36 per ounce by 2:33 p.m. EDT (1833 GMT), having earlier hit a more than one-week high of $1,721.76.
Oil prices slipped on Thursday as global supply and demand worries erased earlier gains seen from an increase in Saudi Arabia’s official crude selling price and a surprise rise in Chinese exports last month.
Brent futures fell 26 cents, or 0.9%, to settle at $29.46 a barrel, while U.S. West Texas Intermediate (WTI) crude lost 44 cents, or 1.8%, to settle at $23.55.
