9 May: Traders awaiting US/China trade developments. China CPI/PPI ahead. US PPI, Powell speaking, later.

By | May 9, 2019

 

The US$ has had a fairly steady session, with the DXY moving just 5 points higher, with the main attraction being seen in Sterling which saw another selloff after the UK Government conceded that there will be no Brexit compromise with the opposition Labour meaning that the UK should now begin to prepare to participate in the European election on May 23, at which both major political parties are likely to suffer very heavy losses.

In other markets, US stocks were volatile but ended flat, as traders wait on the crucial round of talks between the United States and China, with Vice Premier Liu He to visit Washington on Thursday/Friday in a last-ditch effort to strike a deal. Otherwise, the US will raise tariffs to 25% from 10% on $200 billion worth of Chinese imports on Friday.

In the commodities markets, the metals have given up some minor ground (-.2%/-0.4%) while WTI has gone the other way, +1.1%, after the EIA reported that that crude inventories fell by nearly 4 million barrels in the week to May 3, versus forecasts for a build of 1.2 million.

Looking ahead, the main interest today will come from China, with the release of the April CPI and PPI (CPI, exp 0.1%mm, 2.5%yy; PPI, exp 0.6%yy). Europe has a completely empty calendar and then we have some more inflation data from the us with the release of the April PPI (exp 0.2%mm, 2.3%yy; Ex-F/E, 2.5%yy) as well as March Trade Balance, Wholesale Inventories and the weekly Jobless Claims.

Central bank speakers will then take centre stage, led by Fed Chair, Jerome Powell who may create some waves, while other Fed speakers will include Bostic and Evans. Have a good day.,

Economic data highlights will include:

Thur: China CPI/PPI, Japan Machine Tool Orders, Consumer Confidence Index, US PPI, Trade Balance, Wholesale Inventories, Jobless Claims, Fed’s Evans Speech

Market moves, in brief:

Bonds: US10Y; 97.62% (0.05%), German 10Y; -0.044% (-23%), UK 10Y; 1.138% (-1.83%), Australian 10Y; 1.745% (-2.75%), NZ 10Y; 1.865% (-0.53 %), China 10Y; 3.345% (-0.43%)

Stock Indices: DJI; +0.01%, S+P; -0.16%, NASDAQ; -0.23%, EUStoxx50; +0.47%, FTSE100; +0.15%, Shanghai Composite; -1.12%,

Metals: Gold $1280 oz (-0.27%), Silver $14.83 oz (-0.46%), Copper $2.7735 lb (-0.50%), Iron Ore $94.19 per tonne (NYMEX) (-0.59%),

Oil: WTI $62.10 pb (+1.10%)

CURRENCIES
EURUSD: 1.1193
Res  1.1220  1.1245  1.1265
Sup  1.1180  1.1160  1.1135
USDJPY: 110.10
Res  110.30  110.50  110.75
Sup  109.90  109.70  109.50
GBPUSD: 1.3005
Res  1.3030  1.3065  1.3100
Sup  1.2985  1.2955  1.2930
USDCHF: 1.0203
Res  1.0215  1.0225  1.0235
Sup  1.0185  1.0170  1.0160
AUDUSD: 0.6990
Res  0.7005  0.7025  0.7045
Sup  0.6970  0.6945  0.6925
NZDUSD: 0.6575
Res  0.6595  0.6620  0.6650
Sup  0.6555  0.6530  0.6510
INDICES / COMMODITIES
S&P.fs: 2885
Res  2900.00  2910.00  2920.00
Sup  2880.00  2870.00  2860.00
DJ30.fs: 26000
Res  26095.00  26150.00  26250.00
Sup  25990.00  25905.00  25810.00
SPI200.fs: 6252
Res  6265  6280  6295
Sup  6240  6225  6210
XAUUSD: 1280
Res  1285.00  1290.00  1295.00
Sup  1275.00  1270.00  1265.00
XAGUSD: 14.83
Res  14.95  15.05  15.15
Sup  14.80  14.70  14.60
WTI.fs: 62.01
Res  62.40  63.00  63.80
Sup  61.45  60.75  60.05

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