Forex Today: May kicks off with a mixed dollar, Ethereum breaks $3,000, Manufacturing PMIS eyed

Yohay Elam FXStreet

Here is what you need to know on Monday, May 3:

The US dollar has kicked off May with minor gains against major but retreats against commodity currencies. The ISM Manufacturing PMI is eyed as the first Nonfarm Payrolls hint and EZ figures are also of interest, despite holidays in Europe. Ethereum is trading above $3,000 for the first time.

Last week's robust Gross Domestic Product, Personal Income, and Personal Spending figures from the US keep the greenback bid against the euro, pound, yen and also the Canadian dollar, as WTI Oil falls to around $63. Demand for the dollar comes despite a slide in Treasury yields, with returns on 10-year bonds falling to 1.63%.

Robert Kaplan, President of the Dallas branch of the Federal Reserve, said that the bank should begin talking about tapering soon, a more hawkish view than Chair Jerome Powell's flat-out rejection of such a move. Concerns of bubbles have been floating, yet S&P 500 futures remain close to record highs.

Can the Fed keep US rates in check?

Markit's final Manufacturing Purchasing Managers' Indexes for April are set to confirm upbeat prospects for the eurozone economies as the vaccination campaign picks up.

A bank holiday in the UK does not prevent political speculation from weighing on sterling. UK PM Boris Johnson is under pressure for asking Conservative Party donors to fund a redecoration of his Downing 10 residence.

The US ISM Manufacturing PMI for April is set to exceed April's high 64.7 scores, showing strong activity in the industrial sector. The publication serves as a hint toward Friday's all-important Nonfarm Payrolls report.

US ISM Manufacturing PMI April Preview: Let the good times roll

Ethereum, the second cryptocurrency in terms of capitalization, surged above the $3,000 mark early on Monday after gaining over the weekend. Reuters reported that the European Investment Bank could launch a sale of bods on the Ether blockchain. Reports that Andreessen Horowitz, a renowned venture capital firm is considering a $1 billion crypto fund have added to the broader digital asset space.

Ethereum price explodes to new all-time high of $3,000

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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