There was a lot of trading action in the US yesterday and Asia today, so let’s recap.
US data was mixed before the Fed arrived. ADP’s employment data was positive, but the markets didn’t really care. Instead, traders here focused more on errors in the ISM manufacturing data. However, the report also showed a higher figure for prices paid.
As for the Fed, it hasn’t really managed to adopt a hawkish streak and that’s pretty much the takeaway. They stuck to current policy and the dollar fell slightly, but nothing major. Meanwhile, stocks took a late beating as sellers stepped in over the past hour to seal a down day for stocks. US futures are showing a slight rebound, however, with S&P 500 futures now up 0.5%.
In the foreign exchange market, major currencies are mostly stable, with the focus on the Japanese yen. This made things interesting in Asia with USD/JPY falling in the early hours from 157.50 to 153.00, before recovering to sit just below 156.00 currently.
When it comes to European trade today, there won’t be much on the data agenda to shake things up as a whole. There is data on Swiss inflation and we will see if this will justify the start of the SNB rate cut cycle. An overall annual inflation rate of 1.1% is expected.
Next, there is some Eurozone PMI data, but these are the final manufacturing sector numbers. As such, it’s not a big deal. Attention will now slowly shift to the US jobs report tomorrow.
06:30 GMT – April CPI figures in Switzerland
07:15 GMT – April manufacturing PMI in Spain
07:30 GMT – April manufacturing PMI in Switzerland
07:45 GMT – April Manufacturing PMI in Italy
07:50 GMT – April final manufacturing PMI index in France
07:55 GMT – Final April manufacturing PMI in Germany
08:00 GMT – Eurozone final manufacturing PMI for April
11:30 GMT – Layoffs and job cuts at Challenger in the US in April
That’s all for the upcoming session. I wish you good days ahead and good luck in your trading! Stay safe out there.
cnbctv18-forexlive
