Brexit, U.S – China trade talks, the Robert Mueller Report and a mass of economic data will provide the markets with plenty to consider in the week ahead.
Investing.com - This week investors will get to hear remarks from a number of Federal Reserve speakers as they continue to await developments in the U.S.-China trade talks and Brexit will also remain in the spotlight after EU leaders granted the U.K. a two week deadline extension.
The U.S. dollar climbs in Friday trading, as investors grapples with an inverted U.S. Treasury yield curve and another round of disappointing economic data in the eurozone region that put pressure on the euro.
Equities slid after new reports showed that the manufacturing industries in the U.S. and Germany slid in March, fueling concerns of a global slowdown.
Sterling Pound sets off uptrend following Brextension. Lonnie pair uplifts over weak Iran Export numbers. AUD/USD plunges amidst Euro’s Fall.
Stephen Moore, who President Trump on Friday said he would nominate to the Federal Reserve, said in an interview he will be an "independent voice." Speaking to Bloomberg Television, the campaign adviser to Trump said his previous call to fire Chairman Jerome Powell "was probably written in a time of anger" but that the December rate hike was a mistake that has been reversed. He said he looked forward to working with Powell and that Powell could be a "hero." "I do not want to be disruptive, I want to be somebody that can really help Chairman Powell and the others on that board to construct the best pro-growth, stable price system that we can for this country," Moore said.
The Euro initially shot higher during the week, mainly as a result of the Federal Reserve stepping away from a hawkish stance. That being the case, we have tested the 1.1450 level, which is the beginning of massive resistance.
The Euro continues to get hammered as we dropped down to the 1.13 level after getting poor German economic figures. However, nothing has changed regardless of the last couple of days.
Investing.com - The U.S dollar edged higher against its rivals Friday following a rebound in U.S. home sales, but gains were limited by a sharp rise in the yen as U.S. government bond yields slumped amid fears of slowing growth.
Based on the early price action and the current price at 1.1298, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 1.1287.
The time is ripe for euro zone countries to deepen the monetary union and strengthen the currency's global role, but they still have to overcome differences on fiscal instruments for a future common budget, the head of its ESM bailout fund said on Friday. Speaking at a conference in Lisbon, where Eurogroup chairman Mario Centeno made a similar call, Klaus Regling said the ESM's discussions with investors had shown that they are closely looking at the topic of the currency's global role.
U.S. stock futures took a hit early Friday after data showed a reading on German manufacturing fell to its lowest level since 2012. Dow Jones Industrial Average futures slid 133 points, or 0.5%, to 25,877, while S&P 500 futures fell 13.35 points, or 0.5%, to 2,849.25. Nasdaq-100 futures dropped 32.5 points, or 0.4%, to 7,502.25. Stock futures pushed lower after the Markit manufacturing purchasing managers index for German slid to 44.7, its lowest reading in over six and a half years. "The downturn in Germany's manufacturing sector has become more entrenched, with March's flash data showing accelerated declines in output, new orders and exports," said Phil Smith, economist at IHS Markit, in a press release. Losses were widespread, with the euro dropping 0.7% to $1.1298 and the Stoxx Europe 600 index falling 0.5% to 378.60.
After the show of strength in the Wednesday’s session, the pair gave back the gains in Thursday’s session, breaking below the 1.14 level once again. The region above the 1.14 level has been extremely resistive for the pair and given the ECB’s softer stance on interest rate hike as well, the pair will continue to struggle and remain volatile. The 1.1350 level underneath is strong support and likely to attract value. …Read MoreGBP/USD
After yesterday’s losses, EUR/USD jumped to fresh day highs bouncing off two support points in the last three days. The pair is expected to end the week on a positive note.
Euro gains on the positive outcome in key European events. Investors now await macro data updates for short term trading cues.
It’s a big day for the markets. Private sector PMI numbers out of Europe and the U.S will give some guidance on where the economy is heading.
Economic data comes back into focus today. The Eurozone’s private sector PMI numbers will indicate whether the slowdown was temporary or worsening…
Investing.com - The Eurozone economy ended the first quarter on a low note as the two largest manufacturing sectors in the region contracted in March.
investing.com -- The British pound is recovering in early trade in Europe on Friday from a buffeting Thursday after the European Union agreed to only a minimal extension of the deadline for Brexit.
The U.S. dollar climbs in early Thursday trading, retracing some of its losses from the previous session that it incurred after the Federal Reserve reiterated its dovish monetary policy stance.