Europe roundup: Euro drops after German court ruling fuels uncertainty , European shares gain,Gold falls, Oil prices extend gains on demand hopes as lockdowns ease-May 5th,2020

Market Roundup

• Switzerland April CPI (YoY)  -1.1%,-0.8% forecast,  -0.5% previous

• Switzerland April CPI (MoM)  -0.4%,-0.1% forecast, 0.1% previous

• French March Government Budget Balance  -52.5B, -35.2B previous

• Spanish Unemployment Change 282.9K, 302.3K previous

• UK April Composite PMI  13.8, 12.9 forecast, 36.0 previous

• UK April Services PMI  13.4, 12.2 forecast, 34.5 previous

• EU March PPI (MoM)  -1.5%,-1.3% forecast, -0.7% previous

• EU March PPI (YoY)  -2.8%,-2.6% forecast,-1.4% previous    

Looking Ahead - Economic Data (GMT)

• 12:30 US Exports 207.50B previous

• 12:30 US Imports 247.50 previous

• 12:30 US March Trade Balance -44.00B forecast,-39.90B previous    

• 12:30 Canada March Exports 45.00B, 48.34B  previous    

• 12:30 Canada March Imports 45.80B, 49.32B previous

• 12:30 Canada March Trade Balance -2.00B forecast, -0.98B previous
    
• 12:55 US Redbook (YoY) -8.1%  previous
    
• 12:55 US Redbook (MoM) -11.8% previous    
• 13:45 US April Market Composite PMI 27.4, 40.9 previous    

• 13:45 US April Services PMI 27.0 forecast, 39.8 previous

• 14:00 US April ISM Non-Manufacturing Business Activity 48.0 previous

• 14:00 US ISM Non-Manufacturing Employment 47.0 previous    

• 14:00 US April ISM Non-Manufacturing New Orders 52.9 previous    

• 14:00 US April ISM Non-Manufacturing PMI 36.8 forecast, 52.5 previous    

• 15:20    New Zealand GlobalDairyTrade Price Index -4.2% previous      
     
Looking Ahead - Events, Other Releases (GMT)

• 18:00 US FOMC Member Bostic Speaks  

• 18:00    US FOMC Member Bullard Speaks      
Fxbeat

EUR/USD: The euro dipped against dollar on Tuesday, after a German constitutional court ruled that the Bundesbank must stop buying government bonds if the European Central Bank cannot prove those purchases are needed. The single currency fell 0.7% to $1.0825 in the wake of the ruling and is on track for its biggest single-day drop since the beginning of April. Immediate resistance can be seen at 1.0862 (11 DMA), an upside break can trigger rise towards 1.0877 (21 DMA).On the downside, immediate support is seen at 1.0825 (23.6% fib), a break below could take the pair towards 1.0763 (Lower BB).

GBP/USD:  Sterling strengthened against dollar on Tuesday, as risk appetite improved, allowing sterling to gain some ground against greenback. Risk appetite among investors improved as governments eased lockdowns and U.S. officials said the United States was not looking to take punitive measures against China over the coronavirus, contradicting President Donald Trump’s threat to impose tariffs on China.By 12:00 GMT, sterling was up 0.4% against the dollar at $1.2450.  Immediate resistance can be seen at 1.2446 (55 DMA), an upside break can trigger rise towards 1.2500 (Psychological level).On the downside, immediate support is seen at 1.2444 (9 DMA), a break below could take the pair towards 1.2418 (11 DMA).

USD/CHF: The dollar strengthened against the Swiss franc on Tuesday, as concerns U.S.-Chinese bickering over the origin of the coronavirus outbreak will ignite a new trade war increased demand for greenback. U.S. Secretary of State Mike Pompeo on Sunday said there was “a significant amount of evidence” that the coronavirus emerged from a Chinese laboratory, remarks that rattled investors though he did not dispute U.S. intelligence agencies’ conclusion that it was not manmade. Immediate resistance can be seen at 0.9720 (Daily high), an upside break can trigger rise towards 0.9774(Higher BB).On the downside, immediate support is seen at 0.9658 (55 DMA), a break below could take the pair towards 0.9597 (Lower BB).

USD/JPY: The dollar rose higher against the Japanese yen on Tuesday, as global risk appetite was lifted by further easing of COVID-19 lockdown restrictions. The focus now is on the U.S. ISM non-manufacturing PMI data, due later in Tuesday. Market participants were also watching rising China-U.S. tensions after President Donald Trump threatened new tariffs on China for its handling of the virus outbreak. Immediate resistance can be seen at 106.80 (5 DMA), an upside break can trigger rise towards 107.00 (9 DMA ).On the downside, immediate support is seen at 106.33 (Lower BB), a break below could take the pair towards 106.00  (Psychological level). 

Equities Recap

European stocks rose on Tuesday as a jump in shares of French energy major Total and a slew of positive earnings reports added to optimism over easing of lockdowns by major economies.

At (GMT 12:20),UK's benchmark FTSE 100 was last trading down at 1.69 percent, Germany's Dax was up  by 1.86 percent, France’s CAC finished was up by 2.01 percent.

Commodities Recap

Gold prices edged lower on Tuesday as moves by some countries to relax coronavirus restrictions reduced the metal’s safe-haven appeal, even though markets remained wary of souring relations between China and the United States.

Spot gold eased 0.2% to $1,698.39 per ounce by 0330 GMT. U.S. gold futures fell 0.5% to $1,704.80.

Oil prices jumped again on Tuesday on hopes for a recovery in vehicle traffic and fuel demand as some European and Asian countries along with several U.S. states began to ease coronavirus lockdown measures.

West Texas Intermediate (WTI) crude   futures were up 9.6%, or $1.95, at $22.34 per barrel 1000 GMT. The U.S. benchmark has closed higher for the last four sessions.Brent crude  futures were up 7.4%, or $2.02, at $29.22.

Treasuries Recap

Euro zone bond yields inched up on Tuesday before a German court ruling on the legality of an European Central Bank debt purchase programme that has for years capped sovereign borrowing costs and is widely credited with keeping the euro zone intact.

German 10-year yields rose 1.5 basis points at 0.55%, having touched a seven-week low around 0.593% early on Monday