Market Roundup
- EUR/USD -0.22%, USD/JPY -0.12%, GBP/USD -0.09%, EUR/GBP -0.16%
- DXY 0.17%, DAX 0.47%, FTSE 0.47%, Brent 0.04%, Gold -0.09%
- China, U.S. reach deals over parts of trade row but differences "relatively big"-Xinhua
- EZ Apr Markit Service Final PMI, 54.7, 55.0 forecast, 55.0 previous
- EZ Apr Markit Composite Final PMI, 55.1, 55.2 forecast, 55.2 previous
- Germany Apr Markit Service ices PMI, 53, 54.1 forecast, 54.1 previous
- Germany Apr Markit Composite Final PMI, 54.6, 55.3 forecast, 55.3 previous
- France Apr Markit Composite PMI, 56.9, 56.9 forecast, 56.9 previous
- France Apr Markit Service PMI, 57.4, 57.4 forecast, 57.4 previous
- Italy Apr Markit/ADACI Service PMI, 52.6, 53.0 forecast, 52.6 previous
- Nearly a third of UK homebuyers fail to get best mortgages, says watchdog
- ECB caution in removing stimulus is justified: Constancio
- Italy's 5-Star leader calls for election on June 24
- EZ Mar Retail Sales MM, 0.1%, 0.5% forecast, 0.3% previous (r)
- EZ Mar Retail Sales YY, 0.8%, 1.9% forecast, 1.8% previous
- France Mar Trade Balance, EUR, SA, -5.26 bln, -4.90 bln forecast, -5.05 bln previous (r)
Economic Data Ahead
- (0830 ET/1230 GMT) The U.S. Labor Department releases nonfarm payrolls report for the month of April. The report is likely to show 192,000 jobs were added compared with an increase of 103,000 in March.
- (0830 ET/1230 GMT) The U.S. Bureau of Labor Statistics will release labor force participation rate for the month of April. The rate stood at 62.9 percent in the previous month.
- (0830 ET/1230 GMT) The U.S. Labor Department is expected to report that unemployment rate declined to 4.0 percent in April from 4.1 percent in March.
- (0830 ET/1230 GMT) The United States' average hourly earnings are likely to rise 0.2 percent in April after climbing 0.3 percent in the month before.
- (1000 ET/1400 GMT) The Richard Ivey School of Business releases Canada's seasonally adjusted Ivey Purchasing Managers Index for the month of April. The index posted a reading of 59.8 in the prior month.
- (1300 ET/1700 GMT) Baker Hughes reports U.S. Oil Rig Count.
Key Events Ahead
- (0900 ET/1300 GMT) Bundesbank President Weidmann speaks in Frankfurt
- (1245 ET/1645 GMT) Federal Reserve Bank of New York President William Dudley speaks in New York
- (1500 ET/1900 GMT) Federal Reserve Bank of San Francisco President John Williams speaks at the Currencies, Capital, and Central Bank Balances: a Policy Conference at the Stanford University.
- (1730 ET/2130 GMT) Federal Reserve Vice Chair for Supervision Randal Quarles speaks on "Liquidity Regulation and the Size of the Federal Reserve's Balance Sheet" before panel at the Hoover Institution/Stanford University.
- (2000 ET/0000 GMT) Federal Reserve Bank of Atlanta President Raphael Bostic, Federal Reserve Bank of Kansas City President Esther George and Federal Reserve Bank of Dallas President Robert Kaplan are scheduled to participate in "Monetary Policy and Reform in Practice" panel at Stanford, California.
FX Beat
DXY: The dollar index gained as investors awaited U.S. Nonfarm payroll report, which is expected to report 192,000 jobs in April, after increasing by 103,000 positions in March. The greenback against a basket of currencies trades 0.1 percent up at 92.55, having touched a high of 92.83 on Wednesday, its highest since Dec. 28. FxWirePro's Hourly Dollar Strength Index stood at 69.52 (Bullish) by 1000 GMT.
EUR/USD: The euro declined, hovering towards a 4-month low after data showed Eurozone business growth faded again in April. Moreover, growing doubts about the European Central Bank's plan for withdrawing its monetary stimulus weighed on euro bulls' sentiments. The European currency traded 0.2 percent down at 1.1958, having touched a low of 1.1937 the day before, its lowest since Jan. 11. FxWirePro's Hourly Euro Strength Index stood at -95.88 (Slightly Bearish) by 1000 GMT. Immediate resistance is located at 1.2027 (5-DMA), a break above targets 1.2084 (May 1 Low). On the downside, support is seen at 1.1915 (Jan. 9 Low), a break below could drag it till 1.1880.
USD/JPY: The dollar extended losses for the third straight session as a breakthrough deal to fundamentally change China's economic policies is viewed as highly unlikely. Investors now await the U.S. employment report for April for further indications of the strength of the U.S. labour market and inflation pressures. The major was trading 0.1 percent down at 109.09, having hit a high of 110.03 on Wednesday, its highest since Feb. 5. FxWirePro's Hourly Yen Strength Index stood at 53.13 (Bullish) by 1000 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. unemployment rate and highly influential nonfarm payroll report. Immediate resistance is located at 109.53 (Apr. 27 High), a break above targets 110.48 (Feb. 2 High). On the downside, support is seen at 108.78 (Apr. 25 Low), a break below could take it lower 108.54 (Apr. 24 Low).
GBP/USD: Sterling eased towards its lowest level since January as recent weaker-than-expected GDP data, disappointing services sector numbers and Brexit worries convinced markets that the Bank of England will refrain from raising interest rates at its policy meeting next Thursday. The major traded 0.1 percent down at 1.3560, having hit a low of 1.3538 the day before, it’s lowest since Jan. 12. FxWirePro's Hourly Sterling Strength Index stood at -51.01 (Bearish) by 1000 GMT. Immediate resistance is located at 1.3658 (5-DMA), a break above could take it near 1.3772. On the downside, support is seen at 1.3505 (Jan. 4 High), a break below targets 1.3458. Against the euro, the pound was trading 0.1 percent up at 88.19 pence, having hit a low of 88.40 pence on Thursday, it’s lowest since Mar. 15.
USD/CHF: The Swiss franc fell to a near 6-month peak as the dollar stalled its post-FOMC retracement slide and turned higher. The major trades 0.1 percent up at 0.9985, having touched a high of 0.9999 the day before, it’s highest since Nov. 9. FxWirePro's Hourly Swiss Franc Strength Index stood at 2.91 (Neutral) by 1000 GMT. On the higher side, near-term resistance is around 1.0017 (Nov. 9 High) and any break above will take the pair to next level till 1.0033 (Nov. 2 Low). The near-term support is around 0.9936 and any close below that level will drag it till 0.9875 (10-DMA).
Equities Recap
European shares rebounded, boosted by a flurry of upbeat company results, while the greenback surged ahead of U.S. nonfarm payroll report, which could provide some fresh directional impetus.
The pan-European STOXX 600 index rallied 0.3 percent at 385.60 points, while the FTSEurofirst 300 index surged 0.3 percent to 1,513.70 points.
Britain's FTSE 100 trades 0.5 percent up at 7,542.16 points, while mid-cap FTSE 250 gained 0.5 percent to 20,461.14 points.
Germany's DAX rose 0.3 percent at 12,727.98 points; France's CAC 40 trades 0.2 percent lower at 5,491.29 points.
Commodities Recap
Crude oil prices declined, reversing previous session gains, as the market awaited news from Washington on possible new U.S. sanctions against Iran. International benchmark Brent crude was trading 0.4 percent down at $73.43 per barrel by 0948 GMT, having hit a high of $75.58 on Monday, its highest since Nov. 2014. U.S. West Texas Intermediate was trading 0.3 percent down at $68.27 a barrel, after rising as high as $69.53 in mid-April, its highest since Nov. 2014.
Gold prices eased and were headed for a third consecutive weekly decline as the dollar strengthened, while investors focused on the U.S. jobs data due later in the day for fresh catalysts. Spot gold was down 0.2 percent at $1,309.14 per ounce at 0951 GMT and was headed for a third consecutive weekly decline. U.S. gold futures for June delivery fell 0.15 percent to $1,310.70 per ounce.
Treasuries Recap
The U.S. Treasuries gained, ahead of the country’s employment report for the month of April, scheduled to be released today by 12:30GMT. The yield on the benchmark 10-year Treasuries slipped 1 basis point to 2.93 percent, the super-long 30-year bond yields fell nearly 1-1/2 basis points to 3.10 percent and the yield on the short-term 2-year traded tad lower at 2.48 percent.
The German bunds traded tad lower during European session as investors have largely shrugged-off the lower-than-expected services PMI for the month of April, besides the fall in eurozone’s retail sales for the month of March, released today. The German 10-year bond yields, which move inversely to its price, rose nearly 1 basis point to 0.53 percent, the yield on 30-year note also climbed close to 1 basis point to 1.22 percent and the yield on short-term 2-year traded tad higher at -0.56 percent.
The New Zealand bonds ended on a higher note, tracking similar movement in the U.S. Treasuries in the overnight session amid a muted trading session that witnessed data of little economic significance. At the time of closing, the yield on the benchmark 10-year note, which moves inversely to its price, slumped 2-1/2 basis points to 2.80 percent, the yield on the long-term 20-year note plunged 3 basis points to 3.35 percent and the yield on short-term 2-year closed nearly flat at 1.92 percent.
The Australian government bonds gained after the Reserve Bank of Australia (RBA) provided no hint of near-term interest rate hike, also, hinting that inflation is about to remain low for some time. The yield on Australia’s benchmark 10-year Note, which moves inversely to its price, fell 4 basis points to 2.770 percent, the yield on the long-term 30-year Note dipped 4-1/2 basis points to 3.296 percent and the yield on short-term 2-year slumped nearly 2 basis points to 2.046 percent.
