Big end to the week coming up for markets

May 10, 2019

A stack of data is set to be published throughout the day, ensuring a hectic end to the trading week.

The EURUSD gained in momentum overnight, posting some solid gains. The pair opened at $1.11892 and traded flat early before dipping to lows of $1.11723 mid-session. The euro quickly recovered and just a few hours later it rallied to a high of $1.12504. It came off those highs late in the session and is currently trading at $1.12187. The GBPUSD was rather flat overnight, with only small movements in between. The pair opened at $1.30020 and was steady early, before falling to a low of $1.29661 mid-session. The pound climbed off those lows to peak at $1.30352 late in the day. It was unable to hold onto those gains and is currently trading at $1.30082.

The Dow continues to underwhelm as it deals with the fallout of the US trade wars with China. The index opened at a high 26,008.15 and the decline set in early. mid-to-late session trading saw the Dow fall sharply to lows of 25,514.39. The Dow bounced off those lows, climbing back up to 25,887.15 late in the day. It is currently trading at 25,839.86. The Dax took its lead from the Dow, ending the day in negative territory. The German index opened at 12,148.54 and ticked up to a high of 12,170.77 in the opening hour of trade. It was a steep decline for the Dax as it hit lows of 11,952.64 late in the day. It was able to recover some of those losses, eventually closing at 12,077.06.

The day ahead shapes up to be a big one for markets as we see the publication of crucial data as-well-as the continued trade talks between the US and China. The US will be publishing CPI and Core CPI data later tonight, which could bring about some volatility. The CPI figure is expected to a growth of 0.4%, which is the same result as last reading, while the Core CPI figure is expected to tick up to 0.2%, up from 0.1% last time.

Other data release today includes:

Australia – RBA Monetary Policy Statement

Canada – Employment Change, Unemployment Rate, Building Permits

US – Federal Budget Balance, Treasury Currency Report, FOMC Members Lael Brainard and John Williams speak

Europe – German Trade Balance, French & Italian Industrial Production, French Prelim Private Payrolls, Italian Retail Sales

UK – GDP, Prelim GDP (quarterly), Prelim Business Investment, Construction Output, Goods Trade Balance, Index of Services, Industrial Production, NIESR GDP Estimate

 

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