America’s Roundup: U.S. dollar slides ahead of Fed's Powell speech, Wall Street dips, Gold gains, Oil rises as OPEC looks to deepen, extend supply cuts-May 13th,2020

Market Roundup

• Consumer price index falls 0.8% in April

• US April Real Earnings (MoM) 5.8%, 0.2% previous

• US April CPI Index, s.a 255.90, 257.95 previous

• US April Core CPI Index 265.60, 266.80 previous

• US April CPI (YoY) 0.3%, 0.4% forecast, 1.5% previous

• US April Core CPI (MoM) -0.4%, -0.2% forecast, -0.1% previous

• US April CPI Index, n.s.a. 256.39, 256.45 forecast, 258.12 previous

• US April Core CPI (YoY) 1.4%, 1.7% forecast 2.1% previous

• US April CPI (MoM) -0.8%, -0.8% forecast, -0.4% previous

• US Redbook (YoY) -7.5%, -9.3% previous

•  US Redbook (MoM) -1.5% -12.6% previous

•  US April Cleveland CPI (MoM) 0.1%,0.2% previous

•  US April Federal Budget Balance -738.0B, -747.5B forecast, -119.0B previous  
 
Looking Ahead - Events, Other Releases (GMT)

•23:01 UK April BRC Retail Sales Monitor (YoY) -3.5% previous    

• 23:50 Japan March Current Account n.s.a 2.211T forecast, 3.169T previous 
   
• 23:50 Japan April Bank Lending (YoY) 2.0% previous

• 00:30 Australia April May Westpac Consumer Sentiment -17.7% previous

• 01:30 Australia Wage Price Index (YoY) (Q1) 2.1% forecast, 2.2% previous

• 01:30 Australia Wage Price Index (QoQ) (Q1) 0.5% forecast,0.5% previous

• 02:00  New Zealand RBNZ Interest Rate Decision 0.25% forecast, 0.25% previous

Looking Ahead - Events, Other Releases (GMT)

• 02:00 New Zealand RBNZ rate statement

• 02:00 New Zealand RBNZ monetary policy statement

• 02:00 New Zealand RBNZ press conferences

Currencies summaries

EUR/USD: The euro rose against dollar on Tuesday as dollar dipped as the mood turned cautious a day ahead of Federal Reserve Chairman Jerome Powell’s speech on economic issues and as investors weighed the chances of negative U.S. interest rates. Although Powell and Fed officials have all but ruled out cutting interest rates below zero, several markets have started to price in such a cut. The euro was last up 0.4% against the U.S. currency at $1.0848. Immediate resistance can be seen at 1.0859 (11 DMA), an upside break can trigger rise towards 1.0890 (50% fib).On the downside, immediate support is seen at 1.0780 (Daily low), a break below could take the pair towards 1.0754 (23.6% fib).

GBP/USD: Sterling declined against the dollar on Tuesday as continued confusion over government plans to ease lockdown measures, the worst COVID-19 death toll in Europe and revived Brexit risks all weighed on the pound. Official data published on Tuesday showed Britain’s death toll from COVID-19 topped 38,000 as of early May, having overtaken Italy as the worst affected country in Europe. Prime Minister Boris Johnson’s plans for easing the lockdown have meanwhile been widely criticised as unclear. Immediate resistance can be seen at 1.2333 (5 DMA), an upside break can trigger rise towards 1.2343 (38.2% fib).On the downside, immediate support is seen at 1.2273 (23.6% fib), a break below could take the pair towards 1.2245 (April 21st low).

USD/CAD Canadian dollar edged higher against its U.S. counterpart on Tuesday, clawing back some earlier losses as oil prices rose and a measure of expected stock market volatility fell to a 10-week low. The VIX Index fell more than 4%, its fourth straight daily decline, as moves by China to waive off tariffs on some U.S. imports helped boost global shares. Trade tensions between the two countries have resurfaced. The Canadian dollar was up 0.03 percent at 1.4071 to the greenback. Immediate resistance can be seen at 1.4071 (Daily high), an upside break can trigger rise towards 1.4170 (May 7th high).On the downside, immediate support is seen at 1.4042 (21 DMA), a break below could take the pair towards 1.3971(55 DMA).

USD/JPY: The dollar declined against the Japanese yen on Tuesday as growing worries about a second wave of coronavirus infections increased demand for safe haven yen. The central Chinese city of Wuhan reported five new cases on Monday, casting doubts over efforts to lower coronavirus-related restrictions across the country as businesses restart and individuals went back to work. As countries around the world gradually ease restrictions in an effort to restart their economies, investors are becoming anxious about a second wave of infections. Strong resistance can be seen at 107.66 (55 DMA), an upside break can trigger rise towards 108.15 (higher BB).On the downside, immediate support is seen at 107.11 (21 DMA), a break below could take the pair towards 106.70 (5 DMA). 

Equities Recap
 
European shares finished modestly higher on Tuesday, as telecom stocks surged after Britain’s Vodafone maintained its dividend, while defensive stocks were broadly in favour as investors weighed risks from many countries starting to lift lockdowns.

UK's benchmark FTSE 100 closed up by 0.93 percent, Germany's Dax ended down  by 0.05 percent, France’s CAC finished the day down by 0.40 percent.

The S&P 500 dipped in choppy trading on Tuesday as the top U.S. infectious disease expert warned Congress that a premature opening of the nation’s economy could lead to additional outbreaks of the novel coronavirus.

Dow Jones closed down by  1.89% percent, S&P 500 closed down by 2.05% percent, Nasdaq settled down by 2.06%  percent.

Treasuries Recap

U.S. Treasury yields held steady on Tuesday as traders tried to parse the Federal Reserve's appetite for the securities while the economy sputters amid the COVID-19 pandemic.

 The benchmark 10-year yield was down less than a basis point at 0.7241% in morning trading.

Commodities Recap

Gold rose on Tuesday on expectations of more stimulus from the U.S. Federal Reserve to support an economy battered by coronavirus-induced restrictions, while an easing dollar lent further support.

Spot gold rose 0.8% to $1,709.04 per ounce by 11:13 a.m. EDT (1513 GMT). U.S. gold futures rose 0.9% to $1,713.20 per ounce.

Oil prices rose on Tuesday after OPEC’s de facto leader, Saudi Arabia, said it would increase supply curbs in June, while other members of the oil-producing group said they want to extend the deep cuts reached in April for a longer period than originally agreed.

U.S. West Texas Intermediate (WTI) crude  futures settled at $25.78 a barrel, up $1.64, or 6.8%. Brent crude   futures settled at $29.98 a barrel, gaining 35 cents, or 1.2%.