Market Roundup
- Oil rises as coronavirus curbs ease
- Gold hovers near two-week high
Economic Data Ahead
- No Major Economic Data Scheduled
Key Events Ahead
- No Significant Events Scheduled
FX Beat
DXY: The dollar index declined, retreating from recent peaks after data showed 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. According to Reuters, the U.S. economy is expected to have lost about 22 million jobs last month, with an unemployment rate of 16 percent. The greenback against a basket of currencies traded 0.05 percent down at 99.79, having touched a low of 99.63 earlier, its lowest since May 5.
EUR/USD: The euro rose, extending previous session rebound, as the greenback eased after data showed millions more Americans took unemployment aid from the government in the latest week. On Thursday, the major plunged to a near 2-week low on rising concern over the direction of the European Central Bank’s stimulus scheme following a German court ruling earlier this week. The European currency traded 0.1 percent up at 1.0842, having touched a low of 1.0766 the day before, its lowest since April 24. Investors’ attention will remain on a series of economic data from the Eurozone economies, ahead of the U.S. nonfarm payroll report, wholesale inventories and unemployment data. Immediate resistance is located at 1.0872 (21-DMA), a break above targets 1.0890. On the downside, support is seen at 1.0803, a break below could drag it below 1.0782.
USD/JPY: The dollar surged as risk sentiment improved after China and the United States said their top trade negotiators had held a phone call and agreed to strengthen economic and public health cooperation. Additionally, more governments slowly reopening their economies for business further boosted the bid tone around the pair. The major was trading 0.2 percent up at 106.38, having hit a low of 105.98 on Wednesday, its lowest since Mar. 17. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. nonfarm payroll report, wholesale inventories and unemployment data. Immediate resistance is located at 106.53, a break above targets 106.77 (10-DMA). On the downside, support is seen at 106.09, a break below could take it near at 105.76.
GBP/USD: Sterling rallied, extending previous session gains as the Bank of England held rates steady and announced no further stimulus on Thursday, as broadly expected, stating that it was ready to take further action to counter the coronavirus pandemic’s fallout. The major traded 0.3 percent up at 1.2348, having hit a low of 1.2266 on Thursday, it’s lowest since April 21. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2432 (10-DMA), a break above could take it near 1.2454. On the downside, support is seen at 1.2333, a break below targets 1.2307. Against the euro, the pound was trading 0.1 percent up at 87.48 pence, having hit a low of 88.14 on Monday, it’s lowest since April 22.
AUD/USD: The Australian dollar advanced to a 1-week peak after Prime Minister Scott Morrison said Australia will ease social distancing restrictions implemented to slow the spread of the coronavirus in a three-step process, with the aim of removing all curbs by July. The Aussie trades 0.4 percent up at 0.6523, having hit a low of 0.6378 on Thursday, it’s lowest since May 4. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6560, a break above could take it near 0.6612. On the downside, support is seen at 0.6470, a break below targets 0.6453.
Equities Recap
Asian shares gained as investors focused on talks between the U.S. and Chinese trade officials and solid corporate earnings.
MSCI's broadest index of Asia-Pacific shares outside Japan advanced 1.1 percent.
Tokyo's Nikkei gained 2.6 percent to 20,179.09 points, Australia's S&P/ASX 200 index rallied 0.5 percent to 5,391.10 points. South Korea's KOSPI surged 0.9 percent to 1,945.82 points.
Shanghai composite index rose 0.8 percent to 2,895.34 points, while CSI 300 index traded 0.3 percent up at 3,963.62 points.
Hong Kong’s Hang Seng traded 0.9 percent higher at 24,196.12 points. Taiwan shares added 0.5 percent to 10,901.42 points.
Commodities Recap
Crude oil prices surged as more countries began relaxing restrictions put in place to halt the coronavirus pandemic, raising hopes that demand for crude and its products will start to pick up. International benchmark Brent crude was trading 2.2 percent higher at $29.99 per barrel by 0546 GMT, having hit a high of $32.20 on Wednesday, its highest since April 14. U.S. West Texas Intermediate was trading 2.8 percent up at $25.52 a barrel, after rising as high as $27.95 on Wednesday, its highest since April 9.
Gold prices rose, hovering towards a near 2-week high hit in the previous session as investors awaited the U.S. jobs report to gauge the health of the economy after grim economic indicators raised the prospects of more rate cuts by the Federal Reserve. Spot gold was trading 0.2 percent up at $1,718.10 per ounce by 0549 GMT, having touched a high of $1,722.29 on Thursday, its highest since Apr. 27. U.S. gold futures added 0.1 percent to $1,727.
Treasuries Recap
On Thursday, the benchmark 10-year yields fell 8 basis points on the day to 0.6314 percent, after reaching 0.7430 percent on Wednesday, the highest since April 15. The 10-year yields have held in a tight range of between 0.543 percent and 0.785 percent since the beginning of April.
