Forex Today: Trump stokes tensions with China, euro licking its wounds, ADP Non-Farm Payrolls eyed

Here is what you need to know on Wednesday, May 6:

The market mood is mixed with the dollar and yen consolidating their gains while oil is on the back foot and stocks remain cautiously optimistic. US President Donald Trump continued stoking tensions with China, and ADP's Non-Farm Payrolls are eyed.

The White House remains on the offensive against China, stating the coronavirus probably escaped from a lab in Wuhan, a controversial claim. The trade deal between the world's largest economies is at stake.

The president wants to disband the coronavirus task force, focusing on reopening the economy. He commented that he wants a return to normal even if people will suffer. Over 70,000 died from the disease in the US with several states seeing an improvement and gradually returning to normal.

The ISM Non-Manufacturing Purchasing Managers' Index plunged to 41.8 points in April, yet better than expected. The employment component crashed to 30, indicating a substantial loss of jobs. ADP, America's largest payroll provider, releases its labor figures on Wednesday, with over 20 million job losses expected. It serves as a hint toward Friday's Non-Farm Payrolls.

See ADP Employment Preview: Job losses are known unknowns

The euro is trying to find its feet after the German constitutional court deemed part of the European Central Bank's QE as illegal. The EU's top court overrides individual countries' powers and the ECB released a defiant response, vowing to do whatever is needed. Nevertheless, the common currency remains under pressure, trading below 1.0850.

Final Eurozone Services PMIs for April will likely be in the teens, representing a deep recession. The initial read for the bloc stood at 11.7 points. The EU publishes new economic forecasts later on Wednesday and they will likely be dire. Eurozone countries are gradually removing restrictions with the Spanish parliament debating extending the state of emergency and Germany considering devolving power to states. 

The UK's death toll from COVID-19 is nearing 30,000, surpassing Italy despite substantially flattening the curve. Prime Minister Boris Johnson is deliberating what limits to lift amid polls showing most Brits remain wary. The British Chamber of Commerce says most businesses can return to normal within days. GBP/USD has been trading in the 1.24 handle. 

New Zeland's jobs figures for the first quarter beat expectations with the Unemployment Rate stands at 4.2%. The kiwi is on the rise. The Aussie is also gaining ground as final Retail Sales figures for March were upgraded to a jump of 8.5%. 

Oil prices are edging lower after staging an impressive recovery. Oil inventories are due out later in the day. Producers in Texas refrained from coordinating output cuts.

Cryptocurrencies have been consolidating previous gains, with Bitcoin trading around $9,000. 

More Safe-havens, the US-Sino Cold War and a tip for traders – Interview with Marc Chandler