Market Roundup
• China sends top negotiator to U.S. in bid to avert tariff hike
• Dollar ticks up after Trump's trade threats
• Fed's Clarida says there's no good case for rate hikes or cuts-Bloomberg
• US w/e Redbook YY, 5.9%, 5.5% previous
• US Mar JOLTS Job Openings, 7.488 mln, 7.240 mln forecast, 7.087 mln previous, 7.142 mln revised
• US Apr Ivey PMI, 56.7, 57.6 previous
• US Apr Ivey PMI SA, 55.9, 53.0 forecast, 54.3 previous
• Euro zone economy to rebound next year, but inflation won't accelerate -EU Commission
• Italy accuses EU of prejudice after grim economic forecasts
Looking Ahead - Economic Data
• N/A China Apr Trade Balance USD Apr, 35.00 bln forecast, 32.65 bln previous, 32.67 bln revised
• N/A China Apr Imports YY, -3.6% forecast, -7.6% previous
• N/A China Apr Export YY, 2.3% forecast, 14.2% previous
• (ET 09:30/ GMT 00:30) Japan Services PMI, 52.0 previous
• (ET 10:00/ GMT 02:00 ) New Zealand Cash Rate, 1.50% forecast, 1.75% previous
Looking Ahead - Events, Other Releases
• 7 May ( ET 19:30 / GMT 23:50) BoJ releases minutes of monetary policy meeting held on March 14 and 15 in Tokyo
• 8 May ( ET 04:15 / GMT 08:15) Bank of England Deputy Governor Ramsden speaks in London
• 8 May ( ET 07:30 / GMT 11:30) ECB's Draghi speaks in Frankfurt, Germany
• 8 May ( ET 08:00 / GMT12:00) Deputy Irish Central Bank Governor Ed Sibley speaks in Dublin
• 8 May ( ET 08:30 / GMT 12:30) Fed's Brainard speaks in Virginia, USA
Currency Summaries
EUR/USD: The euro edged lower against US dollar on Tuesday, after worries about U.S.-China trade tensions rekindled fears about the outlook for global growth. The greenback kept largely to familiar ranges against most major peers, even as comments from top U.S. trade officials that China had moved away from trade-related commitments weighed on U.S. bond yields and stock futures.The euro was down 0.07 percent at $1.1306. An index that tracks the dollar versus a basket of six major currencies was up 0.14 at 97.69. Immediate resistance can be seen at 1.1224 (21 DMA), an upside break can trigger rise towards 1.1259 (50 DMA).On the downside, immediate support is seen at 1.1178 (9 DMA), a break below could take the pair towards 1.1134 (May 3rd low).
GBP/USD: Sterling slid nearly half a percent against dollar on Tuesday on rising concerns about the progress of Brexit negotiations and worries Prime Minister Theresa May is facing a mounting challenge to her leadership. The British currency was generally weak across the board, reserving some of its biggest losses against the dollar and the low yielding Japanese yen. Against the dollar, the pound slipped as much as 0.5 percent to $1.3040 before recovering slightly to trade 0.4 percent down at $1.3051. Immediate resistance can be seen at 1.3102 (50 DMA), an upside break can trigger rise towards 1.3133 (Daily high).On the downside, immediate support is seen at 1.3001 (11 DMA), a break below could take the pair towards 1.2987 (100 DMA).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday, as investors worried that trade negotiations between the United States and China were unraveling, which could hurt the global economy. Global stocks added to this week's losses after U.S. President Donald Trump in a surprise move on Sunday threatened to hike tariffs on Chinese goods this week. U.S. officials have said China has backtracked on substantial commitments made during months of negotiations. At (2013 GMT), the Canadian dollar was trading 0.18% lower at 1.3471 to the greenback, or 74.23 U.S. cents. Immediate resistance can be seen at 1.3488 (Daily high), an upside break can trigger rise towards 1.3540 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.3449 (11 DMA), a break below could take the pair towards 1.3401 (21 DMA).
USD/JPY: The dollar declined against Japanese yen on Tuesday, as concerns about a trade dispute between United States and China increased demand for safe haven assets. U.S. President Donald Trump, in a surprise move on Sunday, said the higher levies would take effect on Friday if no trade deal with China was sealed, which volatility.The Japanese currency tends to benefit during geopolitical or financial stress as Japan is the world's biggest creditor nation. The dollar was 0.36 percent lower versus the Japanese yen at 110.28. Strong resistance can be seen at 110.92 (5 DMA), an upside break can trigger rise towards 111.23 (9 DMA).On the downside, immediate support is seen at 110.00 (Psychological level), a break below could take the pair towards 110.90 (March 19th low).
Equities Recap
European shares slid on Tuesday as risk appetite took a hit from the European Commission trimming euro zone growth forecasts and pessimism among investors on the path ahead for U.S.-China trade talks.
UK's benchmark FTSE 100 closed down by 1.8 percent, the pan-European FTSEurofirst 300 ended the day downby 1.50 percent, Germany's Dax ended down by 1.7 percent, France’s CAC finished the day down by 1.7 percent.
U.S. stocks slid on Tuesday as escalating trade tensions between the United States and China triggered global growth fears and kept investors away from riskier assets.
Dow Jones closed down by 1.79 percent, S&P 500 ended down 1.64 percent, Nasdaq finished the day down by 1.95 percent.
Treasuries Recap
U.S. Treasury yields fell on Tuesday with longer-dated yields hitting five-week lows as worries about renewed trade tension between China and the United States and its impact on global economic growth spurred safe-haven demand for bonds.
The yields on benchmark 10-year Treasury notes touched a five-week low at 2.444% before retracing to 2.4495%, which was down 5 basis points from late on Monday.
Thirty-year yields were last at 4.4 basis points lower at 2.8635% after hitting a five-week low at 2.857%.
Commodities Recap
Gold prices gained on Tuesday as stock markets weakened after a U.S. threat to hike tariffs on Chinese imports renewed trade tensions and improved demand for safe-haven bullion.
Spot gold was up 0.3 percent to $1,284.45 per ounce at 1:42 p.m. EDT (1742 GMT).U.S. gold futures settled 0.1 percent higher at $1,285.6 an ounce.
Oil prices closed at their lowest in over a month on Tuesday as renewed doubts over a U.S.-China trade deal stoked concerns over global growth and on expectations that U.S. crude stockpiles could hit fresh 19-month highs.
Brent futures fell $1.36, or 1.9 percent, to settle at $69.88 a barrel, while U.S. West Texas Intermediate slipped 85 cents, or 1.4 percent, to end at $61.40.
