US dollarThe market is looking more undecided to start the new day, with major currencies trading narrowly after the rebound in US stocks in trading yesterday. Wall Street managed to reverse losses of roughly 1.7% to post gains of over 1% – for the S&P 500 and the Dow – to end the day.
The dollar rose to a three-week high as traders overlooked another week of roughly 3 million new jobless claims, evidence of a second wave of coronavirus-related lay-offs. The Japanese yen and the euro were weaker against the dollar, and U.S. stocks ended the day up, suggesting the dollar’s bid was not part of a broader risk-off move.
Oil prices rose after the International Energy Agency (IEA) forecast lower global stockpiles in the second half of 2020, although worries remain that a second surge in coronavirus infections could occur in coming months. Crude prices have ticked up in the last two weeks as some countries relaxed coronavirus restrictions to allow factories and shops to reopen.
Brent crude futures rose 6.58% to $31.11 a barrel. U.S. West Texas Intermediate crude futures rose 8.70% to $27.49 a barrel.
Gold climbed to a three-week high, propelled by safe-haven demand, as investors ditched riskier assets on concerns over long-drawn economic weakness and renewed U.S.-China trade tensions.
The immediate focus now shifts to the release of the flash version of the German and Eurozone GDP figures for the three months to March at 08:00 GMT and 09:00 respectively.
Later during the early North American session, the US monthly Retail Sales data at 12:30 GMT is set to show a sharp decline in expenditure, followed by the University of Michigan’s initial Consumer Sentiment Index for May at 14:00 GMT.