Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

America's Roundup:Dollar breaks into positive territory for year,euro back to January lows,Gold hits four-month low,Oil falls after recent strong gains-May 2nd, 2018


Market Roundup

• US Apr ISM Manufacturing PMI, 58.3, 57.3 forecast, 59.3 previous.

• US Apr ISM Mfg Prices Paid, 79.3, 78.0 forecast, 78.1 previous.

• US Apr ISM Manuf Employment Index, 54.2, 57.0 forecast, 57.3 previous.

• US Apr ISM Mauf New Orders Index, 61.2, 61.9 previous.

• US Apr Markit Mfg PMI Final, 56.5, 56.5 previous.

• US Mar Construction Spending MM, -1.7%, 0.5% forecast, 0.1% previous.

• US Apr Texas Serv Sect Outlook, 14.5, 13.5 previous.

• US Apr Dallas Fed Services Revenues, 14.7, 19.3 previous.

• US w/e Redbook MM, 0.5%, 0.3% previous.

• US w/e Redbook YY, 3.5%, 2.6% previous.

• CA Feb GDP MM, 0.4, 0.3 forecast, -0.1% previous.

• CA Apr Markit Mfg PMI SA, 55.5, 55.7 previous.

• Fed likely to keep rates steady; investors bet on June hike.

• Trump pans 'leaked' Mueller questions, Manafort eyes leaks.

• U.S. to operate quotas on steel despite tariff exemptions -White House advisor.

• UK factory growth sinks to 17-month low in April, further cuts chance of BoE hike in May.

Looking Ahead - Economic Data (GMT)

• 1 May 22:45 New Zealand Q1 HLFS Unemployment Rate, 4.5% forecast, 4.5%  previous

• 1 May 22:45 New Zealand Q1 HLFS Job Growth QQ, 0.4% forecast, 0.5% previous

• 1 May 22:45 New Zealand Q1 HLFS Participation Rate, 70.9% forecast, 71.0% previous

• 1 May 22:45 New Zealand Q1 Labour Cost Index - QQ, 0.4%, 0.4% previous

• 1 May 22:45 New Zealand Q1 Labour Cost Index - YY, 2.0% forecast, 1.9% previous

• 2 May 00:30 Japan Apr Services PMI, 50.9 previous

• 2 May 01:45 China Apr Caixin Mfg PMI Final, 50.9 forecast, 51.0 previous

• 2 May 05:00 Japan Apr Consumer Confidence. Index, 44.3 previous

Looking Ahead - Events, Other Releases (GMT)

• 10:30 German Finance Minister Olaf Scholz presents his budget plans for 2018 and 2019 in Berlin

• 11:40 Keynote speech by ECB Supervisor Ignazio Angeloni at the FT-Fitch Global Banking Conference in London

• 12:00 Sweden Central Bank Governor Stefan Ingves will hold a closing address at the Financial Times Global Banking Conference in London

• 18:00 Federal Reserve's Federal Open Market Committee (FOMC) announces decision on interest rate, followed by statement in Washington

Currency Summaries

EUR/USD is likely to find support at 1.1951 levels and currently trading at 1.1992 levels. The pair has made session high at 1.2038 and hit lows at 1.1979 levels. Euro slipped near 3-1/2 month low against the dollar on Tuesday as weaker-than-expected economic data at the start of the week dented euro zone sentiment ahead of the U.S. Federal Reserve's policy decision. The dollar attracted attention as it turned positive for 2018 just ahead of a two-day Fed meeting that is expected to pave the way for more rate hikes this year. Markets do not expect a change in interest rates from the Federal Reserve at the conclusion of its meeting on Wednesday, though analysts will be watching for any change in language and indications that a June hike is likely. Investors are also focused on Friday's employment report for April for further indications of the strength of the U.S. economy and inflation pressures. Data on Tuesday showed that U.S. factory activity slowed for a second straight month in April, weighed down by shortages of skilled workers and rising capacity constraints. The dollar index measured against a basket of major currencies rose half a percent to as much as 92.268, the highest since Jan. 11 and higher than where it started the year. Against the euro, the dollar gained half a percent. That left the single currency as low as $1.1979 and more than five cents from its February and three-year highs.

GBP/USD is supported in the range of 1.3550 levels and currently trading at 1.3614 levels. It reached session high at 1.3701 and dropped to session low at 1.3583 levels. Britain's pound declined against the dollar to near its lowest levels this year on Tuesday as model funds cut positions in a thin market after survey data showed British manufacturing growth sliding to a 17-month low. British manufacturing growth slid to a 17-month low in April, extending a run of mediocre economic data and further reducing the chances of an interest rate hike by the Bank of England next week. Markit/CIPS UK Manufacturing Purchasing Managers' Index (PMI) fell a full point to 53.9 last month, it said on Tuesday, below the median expectation for a reading of 54.8 in a poll of economists. It is the second disappointing data point in the space of a few days after official figures on Friday showed Britain's economy barely grew in the first three months of 2018  with heavy snow only one factor. Struggling against a resurgent dollar, the British currency extended losses to fall 1.3 percent to a low of $1.3588, its biggest daily drop in six months as weak PMI data prompted model-based funds to sell the pound in a thin market with Europe closed due to May holidays. The pound is down nearly 6 percent from a post-Brexit referendum high of $1.4377 hit on April 17.

USD/CAD is supported at 1.2800 levels and is trading at 1.2855 levels. It has made session high at 1.2912 and lows at 1.2822 levels. The Canadian dollar edged higher against its U.S. counterpart on Tuesday, as stronger-than-expected domestic economic growth in February and comments by Bank of Canada Governor Stephen Poloz boosted Canadian dollar. Bank of Canada Governor Stephen Poloz said on Tuesday there is good reason to believe the central bank can manage the risks of Canada's high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that debt. The upbeat tone boosted the Canadian dollar, and increased market expectations for a rate hike in July to 73 percent from 68 percent before the remarks, data from the overnight index swaps market showed. On the data front, the Canadian economy grew 0.4 percent in February, Statistics Canada said, a sign that first-quarter growth could be stronger than the Bank of Canada is predicting. Analysts had forecast February gross domestic product would increase by 0.3 percent. The price of oil, one of Canada's major exports, slid as the U.S. dollar remained near a four-month high. The Canadian dollar was last trading 0.1 percent higher at C$1.2855 to the greenback. The currency traded in a range of C$1.2822 to C$1.2914.

AUD/USD is supported around 0.7439 levels and currently trading at 0.7486 levels. It hit session high at 0.7510 and made session lows at 0.7471 levels. The Australian dollar held near a five-month lows on Tuesday as the central bank held cash rates at record lows as expected and reiterated the need for policy to remain steady for a while yet. The Aussie dollar hit session low at $0.7471 and was last trading at $0.7484.The Aussie slipped about 2 percent in April to clock its third straight monthly loss. It has fallen in 8 of the last 10 sessions. The currency has been on a slippery slope since mid-April when the U.S. dollar jumped on concerns of flaring inflation and faster rate rises in the United States. The Federal Reserve is expected to hike rates at least twice more this year alone. The U.S. central bank is widely expected to stand pat this week on policy for now, market participants will be closely watching the two-day meet for hints of an interest rate hike in June. The Reserve Bank of Australia (RBA), on the other hand, has held rates since August 2016 and is likely to stay pat on policy for at least another year. On Tuesday, it kept its official cash rate at 1.50 percent and stuck to its standard line saying holding its policy stance would be consistent with sustainable economic growth and achieving inflation target.

Equities Recap

British shares gained on Tuesday as data showed manufacturing growth slowed to a 17-month low, sending the pound lower and boosting dollar-earning companies.

UK's benchmark FTSE 100 closed up 0.1 percent, the pan-European FTSEurofirst 300 ended the day down by 0.09 percent.

The S&P 500 eked out a gain on Tuesday after comments from a Trump administration official on trade with China and the Mexican economy minister on the renegotiation of the North American Free Trade Agreement provided cause for optimism.

Dow Jones closed down by 0.28 percent, S&P 500 ended up by 0.24 percent, Nasdaq finished the day up by 0.89 percent.

Treasuries Recap

U.S. Treasury yields rose on Tuesday, with prices pressured ahead of a quarterly refunding announcement that is expected to show more supply as the government seeks to finance its massive tax cut program and increased fiscal spending plan.

In late trading, U.S. 10-year yields were at 2.970 percent, up from Monday's 2.936 percent.

U.S. 30-year bond yields also rose, to 3.133 percent, from 3.096 percent late Monday.

On the front end of the curve, U.S. two-year yields inched up to 2.512 percent, up from 2.488 percent on Monday.

Commodities Recap

Oil prices slid more than 1 percent on Tuesday as the dollar remained near a four-month high, but worries that U.S. President Donald Trump will pull out of the Iran nuclear deal underpinned the market.

Brent crude for July delivery was trading $1.11 lower at $73.60 by 12:31 p.m. EDT (1631 GMT). The June contract expired on Monday, settling up 53 cents at $75.17.

U.S. West Texas Intermediate crude for June delivery was 87 cents down at $67.70 a barrel, after settling 47 cents higher on Monday.

Gold slid to a four-month low on Tuesday as the dollar strengthened ahead of a U.S. Federal Reserve policy meeting that is being watched for clues on the future pace of interest rate hikes.

Spot gold was down 0.7 percent at $1,305.72 by 1:37 p.m. EDT (1737 GMT), off an earlier low of $1,301.51, its weakest since Dec. 29. U.S. gold futures for June delivery settled down $12.40, or 0.9 percent, at $1,306.80 per ounce.
 

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.