Forex news for near trading on May 7, 2020
- NASDAQ index erases 2020 losses. Index now marginally higher on the year.
- Paul Tudor Jones said to be buying bitcoin as hedge
- Nonfarm payroll less than 24 hours away. What is expected?
- Fed's Barkin: Negative rates not worth a try here
- Consumer credit from March falls $-12.04B versus a consensus estimate of +$15B
- White House considering delaying tax filing deadline - NBC
- WTI June contract settles at $23.55
- Gold is up and reversing the declines from yesterday (and then some)
- Italy reports 274 coronavirus deaths versus 369 on Wednesday
- What would happen if China dumped their treasury holdings?
- European shares close the session higher
- New York coronavirus hospitalizations at about 8600 versus 9179 yesterday
- Fed's Daly: Fed has many tools left to use
- January 2021 Fed funds futures price in negative rates
- Canadian government/provinces have struck a deal to boost pay of essential workers
- Fed's Bostic: Fed to err on providing too much support, not too little
- ECB Lagarde: Second wave of viruses among top fears
- Ivey purchasing managers index for April 22.8 versus 26.0 last month
- US nonfarm productivity for 1Q (P) -2.5% versus -5.5% estimate
- US initial jobless claims 3169K vs 3000K estimate
- The AUD is the strongest and the JPY is the weakest as NA traders enter for the day
The price of January 2021 Fed funds futures moved above the 100.00 level in trading today, and with that move started to price in negative interest rates in the US. Yields on the treasuries took note and with the 2 year yield falling to a all-time record low of 0.125% (currently at 0.135%). Other yields along the curve or lower (see table below).
The USD fell in reaction and was the only outdid by the JPY as the weakest currency of the majors. The biggest declines were vs the AUD, NZD and CAD with more modest declines vs the EUR and GBP (the USD was higher vs the JPY)
US stocks moved higher with the Nasdaq index erasing all the declines from 2020 and closing higher on the year 1st time since March 4. The index closed at 8979.66. That was just above the 2019 end of year closing level at 8972.60. The not so good news is that the price did move above the 9000 level reaching a high price of 9015.99 before retracing into the close. Nevertheless, a 1.41% gain his impressive, as is the recovery of the 26% decline on the year at the session lows and about 6 weeks time. The S&P index gained 1.15%. The Dow Jones gained 0.89%.
Gold prices fall the clues from lower dollar and lower rates and is trading up $32.50 or 1 point at 3% at $1718.16. The high price extended to $1722.07. The low was way down at $1676.81.
WTI crude oil futures are trading near the session lows after earlier gains. The front contract is trading at $23.52 down $0.48 or -2.07%. The July contract is trading down $0.71 or -2.81% at $24.91.
Tomorrow the US employment report will be released at 8:30 AM ET (Canada jobs report will also be released). The expectations are for a historic and oversized -21.7 billion decline in nonfarm payroll. The unemployment rate is expected to rise to 16.0%, from 4.4% last month. US initial jobless claims today saw the total number of claims since mid March reached 33.5 million. The only bright spot is that the trend the lower end claims continues since the record 6.867 million from the week of March 27 (the last 5 weeks have been negative). This week jobless claims totaled 3.169 million.
Good fortune in your trading. Thank you for your continued support
