Economic Data
- (IN) India Weekly Forex Reserves w/e Apr 24th: $344.6B v $343.2B prior - 09:30 (CA) Apr Canada RBC Manufacturing PMI: ## v 48.9 prior- (US) Apr Final Markit Manufacturing PMI: 54.1 v 54.2e
- (US) Mar Construction Spending M/M: -0.6% v 0.5%e
- (US) Apr ISM Manufacturing: 51.5 v 52.0e; Prices Paid: 40.5 v 42.0e
- (US) Apr Final University of Michigan Confidence: 95.9 v 96.0e
While the selloff in European bonds seems to have moderated this morning, US yields are still moving up on some mixed data reports. The 10-year UST yield has moved up more than seven basis points to trade above 2.01% for the first time since early March. As of writing, the DJIA is up 0.72%, the S&P500 is up 0.61% and Nasdaq is up 0.70%.
The headline ISM manufacturing index failed to rebound as expected in April, remaining flat with the March reading. However there was notable improvement in the production and new orders indexes, both of which rose by roughly two points each. The March Construction Spending report was softer than expected. EUR/USD had moved up to 1.1290 through the US cash open, however the pair turned around after it failed to take out 1.3000.
Like the other supermajors earlier this week, Chevron crushed earnings expectations even as profits fell sharply from the year-ago period in the wake of the oil meltdown. Unlike the other big oil firm, Chevron's revenues also fell sharply, and shares of CVX are down more than 2%. AIG is up 2.5% after its profits declined less than expected. However the most notable decliner is LinkedIn, down more than 20% after the social media powerhouse cut its FY and offered Q2 guidance at less than half the expected amount.
Looking Ahead
- 13:00 (US) Weekly Baker Hughes Rig Count data- 15:45 (US) Fed's Williams (Voter, dove) speaks at Chapman University Conference
- (US) Apr Domestic Vehicle Sales: 13.45Me v 13.35M prior; Total Vehicle Sales: 16.90Me v 17.05M prior
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Editors’ Picks
EUR/USD holds gains above 1.0700 as USD struggles ahead of data
EUR/USD is posting small gains above 1.0700 in the European session on Thursday. The pair remains underpinned by a sustained US Dollar weakness, in the aftermath of the Fed policy announcements and ahead of more US employment data.
GBP/USD stays firm above 1.2500 amid US Dollar weakness
GBP/USD is consolidating the rebound above 1.2500 in European trading on Thursday. The pair's uptick is supported by a broadly weakness US Dollar on dovish Fed signals. A mixed market mood could cap the GBP/USD upside ahead of mid-tier US data.
Gold price trades with modest losses amid positive risk tone, downside seems limited
Gold price edges lower amid an uptick in the US bond yields, though the downside seems cushioned. A positive risk tone is seen as another factor undermining demand for the safe-haven precious metal.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.