Here is what you need to know on Tuesday, May 4:
After another positive day, markets are cautious on Tuesday, sending the dollar up and everything else down. Fed Chair Powell said the recovery is patchy and supply problems seem to slow US growth. Cryptocurrencies, gold and oil are all struggling.
The US dollar is gaining ground across the board, despite a slide in Treasury yields. Returns on 10-year bonds are around 1.61%. Jerome Powell, Chair of the Federal Reserve, poured cold water on the recovery and stressed that low-income people are still struggling to return to work. His colleague John Williams also said that the US economy has a long way to go.
The US ISM Manufacturing Purchasing Managers' Index disappointed with 60.7 points, with comments showing that companies are struggling with higher prices and supply chain issues. Factory orders figures for March on the agenda.
EUR/USD is changing hands closer to 1.20 as the EU is considering lifting some travel restrictions. GBP/USD is battling 1.39 ahead of Markit's final Manufacturing PMI for April.
Gold is trading below $1,790 after rising toward $1,800 on Monday. WTI Crude Oil is trading around $64, below the highs.
The Reserve Bank of Australia left its interest rate unchanged at 0.1% and said I would consider changes to its bond-buying scheme in its July meeting. AUD/USD is trading above 0.77, yet below the highs.
Vaccines: The US could approve jabbing 12 to 15-year-olds with the Pfizer/BioNTech vaccine, raising the chances to reach herd immunity. The pace of immunizations is slowing and America is under pressure to contribute excess inoculations to other countries. The greater New York area will take steps to return to normal.
Indian Prime Minister Narendra Modi refuses to slap a lockdown despite a dire covid situation in his country. Concerns about variants emerging in the Asian giant are somewhat weighing on markets.
Cryptocurrencies: Bitcoin is trading around $56,000 after falling to lower levels while Ehtereum is consolidating its gains above $3,300. XRP fell below $1.48.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY pops and drops on BoJ's expected hold
USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold consolidates near record high, bullish potential seems intact
Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.