Here is what you need to know on Monday, May 16:
Markets have turned risk-averse at the start of the week following the risk rally witnessed on Friday. The disappointing macroeconomic data releases from China, coronavirus-related concerns and heightened fears over a global economic slowdown allow safe-haven flows to continue to dominate the markets. The European Commission will release the Economic Growth Forecasts for the euro area and the Bank of England's Monetary Policy Hearing will take place in the UK parliament. In the second half of the day, the Federal Reserve Bank of New York's Empire State Manufacturing Survey will be looked upon for fresh catalysts.
The data from China showed earlier in the day that Retail Sales contracted by 11.1% on a yearly basis in April, missing the market expectation for a decline of 6% by a wide margin. Additionally, Industrial Production narrowed by 2.9% in the same period, compared to analysts' forecast for a growth of 0.7%. Meanwhile, the city of Shanghai announced that coronavirus controls will remain in place due to the high risk of a rebound in infections despite the fact that five out of the city's 16 districts have reported no cases. Moreover, the city of Beijing decided to extend the work-from-home orders in four districts, including Chaoyang.
The US Dollar Index, which snapped a six-day winning streak and lost 0.3% on Friday, is staying relatively quiet near 104.50 early Monday. The benchmark 10-year US Treasury bond yield is moving sideways near 2.9% and US stock index futures are down between 0.5% and 0.7%.
EUR/USD lost more than 100 pips last week and stays relatively quiet near 1.0400 early Monday. Eurostat will release the Trade Balance data for March later in the session.
GBP/USD rose toward 1.2300 during the Asian trading hours on Monday but failed to preserve its recovery momentum.
USD/JPY trades in negative territory near 129.00 in the European morning. Bank of Japan Governor Haruhiko Kuroda said earlier in the day that it was important for them to continue to support the economy with powerful monetary easing. Despite these comments, the risk-averse market environment helps the Japanese yen find demand.
Gold fluctuates in a tight channel above the key $1,800 mark early Monday. The yellow metal continues to have a difficult time capitalizing on safe-haven flows.
Following the decisive rebound witnessed over the weekend, Bitcoin came under renewed selling pressure at the start of the week and was last seen trading near $29,500, where it was down nearly 6% on the day. Ethereum turned south and started testing $2,000 after gaining nearly 6% in the previous two days.
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
EUR/USD rises toward 1.0800 as USD weakens
EUR/USD has gained traction and advanced toward 1.0800 in the early American session on Monday. The positive opening witnessed in Wall Street makes it difficult for the US Dollar to find demand and helps the pair continue to push higher.
GBP/USD closes in on 1.2300 as mood improves
GBP/USD has preserved its bullish momentum and advanced to the 1.2300 area in the second half of the day on Monday. The risk positive market atmosphere makes it difficult for the US Dollar to stay resilient against its rivals and fuels the pair's daily rally. Eyes on BOE Governor Bailey's speech.
Gold recovers above $1,950, stays deep in red
Gold price has managed to stage a modest rebound in the American trading hours and rose above $1,950 from the daily low it set at $1,944. The benchmark 10-year US Treasury bond yield is still up more than 3% despite having retreated from session highs, not allowing XAU/USD to gain traction.
Four reasons why SUSHI holders will have a bullish week despite SEC's move
SushiSwap price undid the early March gains in the last week after the SEC subpoenaed the platform’s head chef Jared Grey. As a result of this announcement, the token collapsed by roughly 18%.
Alibaba (BABA) edges higher after Jack Ma returns to China for AI talk
BABA shareholders begin the week with a glimmer of hope after founder Jack Ma was seen visiting China after spending more than one year abroad. The report originally led to Alibaba's shares in Hong Kong rising 4% before subsiding.