Forex Market Overview
Stock Markets Bullish Ahead of FOMC
The global financial markets encountered a moderately soft start to the week yesterday as they await top tier economic figures and central bank meetings in the coming days. Stock markets remained bullish across the globe, but there was little in the way of attention-grabbing moves.
Several US multinational corporations have so far referenced the strong dollar as an obstacle to better performance in the first quarter of 2019, including Dow Jones Industrial Average DJIA, +0.04% components Procter & Gamble Co. PG, -1.02%, United Technologies Corp. UTX, +0.95% and Coca-Cola Co. KO, +0.33%
China’s Manufacturing PMI Disappoints
China’s official purchasing management index (PMI) slipped to 50.1 April, when economists had forecasted a steady outcome of 50.5 or even an increase. On the flip side, the Services or Non-manufacturing PMI also disappointed with a pullback to 54.3.
Choppy Trading In the Dollar Index
The dollar consolidates in the tight trading ranges ahead of labour day holiday. Whereas on Monday, the dollar continued to drift lower off of recent highs with the Dxy now trading back under 98.00.
The liquidity is set to expected to remain an issue in a subsequent couple of days with Japan off for the entire week and May Day holidays closing most European markets tomorrow. Nevertheless, some important economic events are expected as we progress through the week.
Today in the London session there is a whole raft of second-tier data scheduled but expect more range bound conditions as traders look to tomorrows holiday.
The centre of focus will shift to Canada on the US open with the latest GDP numbers due out as well as comments from BOC Governor Poloz later in the day as he testifies before the government’s finance committee in Ottawa.
- US Consumer Confidence numbers are also expected later in the day with the investors looking for a 126.2 figure. The investors will be watching more updates from the corporate sector of the United States as there are more than 50 companies which are scheduled to release the EPS today.
- The Eurozone will release the figures on the annual and quarterly GDP for the first quarter of 2019 and the unemployment rate in March, which is expected to remain unchanged at 7.8%.
- Germany will publish monthly CPI for April, which is expected to remain unchanged at 0.4%.
- The United States is scheduled published HPI index S & P / CS Composite-21 not seasonally adjusted annual reported in February, the directors of the index and the Chicago purchasing the month of April, which is expected to rise to 59.3 from the previous 58 7.
- Most importantly, the report on consumer confidence, which should rise to 126.0 from 124.1 the previous, pending contracts of sale of monthly housing referring to March, which should increase by 1.0%, from the last -1.0%, and weekly oil inventories.
Summing up, it’s going to be a busy day, so keep following for trade setups. Have a good day!