Market Roundup
• U.S. services sector activity contracts in April-ISM
• US indexes up: Dow 0.56%, S&P 500 0.90%, Nasdaq 1.13%
• Price of U.S. oil increases about 20%
• US Exports187.80B, 207.50B previous
• Imports 232.20B, 247.50 previous
• US March Trade Balance-44.40B, -44.00B forecast,-39.90B previous
• Canada March Exports 46.26B, 45.00B, 48.34B previous
• Canada March Imports 47.67B , 49.32B previous
• Canada March Trade Balance -1.41B, -2.00B forecast, -0.98B previous
• US Redbook (YoY) -9.3%, -8.1% previous
• US Redbook (MoM) -12.6% -11.8% previous
• US April Market Composite PMI 27.0, 27.4, 40.9 previous
• US April Services PMI 26.7,27.0 forecast, 39.8 previous
• US April ISM Non-Manufacturing Business Activity 26.0, 48.0 previous
• US ISM Non-Manufacturing Employment 30.0 , 47.0 previous
• US April ISM Non-Manufacturing New Orders32.9, 52.9 previous
• US April ISM Non-Manufacturing PMI 41.8, 36.8 forecast, 52.5 previous
• New Zealand GlobalDairyTrade Price Index -0.8%, -4.2% previous
Looking Ahead - Economic Data (GMT)
• 22:45 New Zealand Employment Change (QoQ) (Q1) -0.3% forecast, 0.0% previous
• 22:45 New Zealand Participation Rate (Q1) 70.00% forecast, 70.10% previous
• 22:45 New Zealand Unemployment Rate (Q1) 4.3% forecast, 4.0% previous
• 01:30 Australia March Retail Sales (MoM) 8.2% forecast, 0.5% previous
• 01:30 Australia Retail Sales (QoQ) (Q1) 1.7% forecast, 0.5% previous
• 01:45 China April Caixin Services PMI 43.0 previous
Looking Ahead - Events, Other Releases (GMT)
• No significant
Currency summaries
EUR/USD: The euro dipped against dollar on Tuesday as moves to ease lockdowns in major economies and upbeat US economic data boosted dollar. The greenback’s gains also came at the expense of the euro, which weakened broadly 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. Immediate resistance can be seen at 1.0872 (9 DMA), an upside break can trigger rise towards 1.0885 (50% fib).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 sentiment in global markets, allowing the pound to recover some of its 1.5% loss this month. Risk appetite improved in markets as governments eased lockdowns and U.S. officials said the United States was not looking to take punitive measures against China over the coronavirus outbreak, contradicting President Donald Trump’s threat to impose tariffs on China. By 22:00 GMT, sterling was up 0.07% against the dollar at $1.2439. Immediate resistance can be seen at 1.2449 (9 DMA), an upside break can trigger rise towards 1.2500 (Psychological level).On the downside, immediate support is seen at 1.2412 (30 DMA), a break below could take the pair towards 1.2302(Lower BB).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as the easing of coronavirus-induced lockdowns in some countries boosted investor sentiment and the price of oil. Canada runs a current account deficit and is a major exporter of oil, so the loonie tends to be sensitive to the global flow of trade and capital. The Canadian dollar was last trading 0.4% higher at 1.4042 to the greenback. Immediate resistance can be seen at 1.4100 (Psychological level), an upside break can trigger rise towards 1.4214 (Higher BB).On the downside, immediate support is seen at 1.4033 (21 DMA ), a break below could take the pair towards 1.4022 (9 DMA ).
USD/JPY: The dollar edged higher against the Japanese yen on Tuesday after data showed a better-than-expected reading for the U.S. services sector in April. The U.S. Institute for Supply Management’s non-manufacturing index fell to 41.8 last month, from 52.5 in March, but the April level was higher than the consensus forecast of 36.8. 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 closed higher on Tuesday, shrugging off uncertainty over regional bond purchases as a swathe of positive earnings and an easing of coronavirus lockdown restrictions in some countries caused some optimism.
The UK's benchmark FTSE 100 closed up by 1.66 percent, Germany's Dax ended up by 2.51 percent, and France’s CAC finished the up by 2.40 percent.
Wall Street’s main indexes rallied on Tuesday as healthcare stocks jumped, oil prices surged and a number of countries and U.S. states eased coronavirus-induced restrictions in an attempt to revive their economies.
Dow Jones closed up at 0.56 percent, S&P 500 ended up 0.90 percent, Nasdaq finished the day up by 1.13 percent.
Treasury Recap
U.S. Treasury yields rose as plans to reopen major economies boosted risk appetite on Tuesday, a day after the Treasury Department announced it would borrow a record amount of almost $3 trillion this quarter.
Benchmark 10-year yields rose two basis points to 0.654%. The yield curve between two-year and 10-year notes steepened two basis points to 47 basis points.Thirty-year bond yields rose three basis points to 1.327%.
Commodities Recap
Gold prices fell on Tuesday, weighed down by an uptick in risk appetite as oil prices recovered and a number of countries eased coronavirus-induced restrictions in an effort to revive economic activity.
Spot gold fell 0.1% to $1,699.33 per ounce by 11:19 a.m. EDT (1519 GMT). U.S. gold futures fell 0.5% to $1,705.40.
Oil prices soared on Tuesday, as some European and Asian countries along with several U.S. states began to ease coronavirus lockdown measures.
International benchmark Brent crude rose $3.77, or 13.9%, to settle at $30.97 a barrel. U.S. West Texas Intermediate (WTI) crude futures gained $4.17, or 20.5%, to close at $24.56 a barrel.
