A steady stream of PMI data from Europe and North America will headline the financial market newswire on Thursday, including the final Markit PMI Composite report for the Eurozone. Examine this 5 April Market Moving Fundamental Events Analysis to see what else is moving the markets today.
5 April, HotForex – 10-year Bund yields are up 1.3 bp at 0.509% in opening trade, after a broad move higher in long yields across Asia. 10-year JGB yields are up 1.1 bp at 0.030%, the 10-year Treasury yield is up 0.7 bp at 2.81%, as stock markets continued to move higher during the Asian session after a late rally in the U.S.
European Market Outlook
European stock futures are also moving higher, with the DAX future up 1.25% and pointing to early gains in the index, which still closed with a loss yesterday.
Weaker than expected German manufacturing orders at the start of the session failed to dent optimism that an all-out trade war can be avoided, although trade rhetoric will keep markets on tenterhooks and volatility high. Today’s calendar still has Eurozone and U.K. services PMIs as well as Eurozone producer prices and retail sales.
The dollar has been trading firmer so far today, correlating with an improvement in risk appetite, with the flipside of the sentiment seeing the yen underperform moderately as the Japanese currency seeing some of its safe-haven premium unwind. Japan’s Nikkie 225 closed with a 1.5% gain, while S&P futures are showing a 0.4% gain after the cash index closed out the regular session on Wall Street yesterday with a 1.2% advance.
The view, or hope perhaps, is that the U.S. and China are more likely to negotiate than actually implement a trade war. The announced tariff hikes haven’t been implemented yet, and there is a time in place for talks to happen. Proof will be in the pudding, however, and investors are likely to remain wary.
USDJPY lifted above 107.00, logging a three-week high of 107.02. EURUSD ebbed under 1.2300, towards 1.2250, seemingly breaking free of the apparent orbit of recent sessions around the 1.2300 level. The greenback also posted gains versus the antipodean dollars and most currencies in the emerging and newly-development world.
Main Macro 5 April Market Moving Fundamental Events Analysis
- EU Service PMI – The services reading is projected at 55.3 and is off of the 58.0 high from January. These would leave the composite at 55.5, lower than the 57.1 in February, as well as the 58.8 January high.
- Canadian Trade Balance – The trade deficit is expected to widen to -C$2.1 bln in February from -C$1.9 bln in January. Exports are seen improving 0.5% m/m after the 2.1% drop in January. Imports are projected to expand 0.8% after a 4.3% plunge.
- US Unemployment Claims – seem at 225K from 215K last week.
Support and Resistance level
This article about 5 April Market Moving Fundamental Events Analysis was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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