Data from China in focus

May 8, 2019

Another busy day for with data from China headlining the day, while trade concerns continue to weigh on markets.

The USD strengthened overnight, sending paired currencies down. The EURUSD opened the day at $1.11974 and climbed early, hitting highs of $1.12174. Mid-session trading saw the pair begin its decline, where it fell to a low of $1.11657. The euro bounced off those lows and regained some of those losses in late trading. It is currently trading at $1.11902. The GBPUSD followed the same pattern as the euro after opening at $1.30946. The pair made some modest gains early, peaking at $1.31310. The pound gave up those gains mid-session, falling to a low of $1.30379. It has come off those lows and is presently trading at $1.30681.

Trade worries continue to weigh on the Dow, while some analysts also say that the Dow has been overbought recently and this is just a return to more normal levels. The index opened at 26,262.03 and remained flat early, lifting to a high of 26,433.39. The sell-off began shortly after that as the sellers piled in, sending the Dow to a low of 25,793.44. It has come off those lows and is currently trading at 25,990.84. The Dax was again down again by the Dow after opening the session at 12,277.97. The German index bumped up to an early high of 12,324.60 before succumbing to the pressures from across the Atlantic. The Dax tumbled to lows of 12,029.73 late in the day before closing at 12,064.29.

The day ahead shapes up to be an interesting one for markets as China publishes their all-important trade data. In the face of the heightened trade wars with the US, this figure will come into further focus. The expectation is that China will post a $235 billion surplus, up from the $221 billion surplus posted at the last reading.

Other data published today include:

Canada – Trade Balance

China – USD-Denominated Trade Balance

US – Crude Oil Inventories, FOMC Member Lael Brainard speaks

UK – Halifax HPI, MPC Member David Ramsden speaks, RICS House Price Balance

NZ – Official Cash Rate, RBNZ Monetary Policy Statement, Rate Statement and Press Conference

Europe – German Industrial Production, Swiss Unemployment Rate, ECB Monetary Policy Meeting Accounts, French bank holiday


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