US dollar
The market mood is mixed as President Donald Trump continued stoking tensions with China, and ADP’s Non-Farm Payrolls are closely watched as it serves as a hint toward Friday’s Non-Farm Payrolls. Major currencies are pretty much little changed on the day, although the yen is keeping slightly higher across the board with USD/JPY under 106.40 in the early European trading.
The dollar rose against most major currencies, in line with U.S. stocks, bolstered by the prospect of reopening in some American states and countries around the world, as well as U.S. services data that was stronger than market expectations. The euro fell to $1.0845, while GBP/USD is trading above 1.24.
Wall Street’s main indexes gained as healthcare stocks rallied, oil prices surged, and several countries and U.S. states eased coronavirus-induced restrictions to revive their economies. Treasury yields rose as the plans to reopen major economies boosted risk appetite, a day after the Treasury Department announced that it would borrow a record amount of almost $3 trillion this quarter.
Oil prices are edging lower after staging a notable recovery. Brent crude rose 14.49% to $31.14 a barrel. U.S. West Texas Intermediate crude gained 20.5% to $24.57 a barrel.
Gold steadied close to $1,700 an ounce, as massive global stimulus measures to ease the economic blow from the coronavirus pandemic offset improved risk sentiment on the back of easing restrictions and lockdowns.
Eurozone Services PMI prints for April at 08:00 GMT and UK’s Construction PMI at 08:30 GMT will be the main data releases of the session ahead.
ADP, America’s largest payroll provider, releases its labour figures at 12:15 GMT with over 20 million job losses expected, the first full measure of a month the country spent on lockdown restrictions, ahead of Friday’s non-farm payrolls. Moving on, at 14:30 GMT EIA Oil inventories are due.