France, Eurozone, and the UK reported better-than-expected manufacturing PMI data on Friday. Meanwhile, Germany's Manufacturing PMI fell to 54.1 in April from 56.9 in March, below forecasts of 54.1. Moving ahead to the North American session, the US will release the latest manufacturing PMI numbers.
France manufacturing PMI – Actual: 55.4 Forecast: 53.0 Previous: 54.7
Eurozone manufacturing PMI - Actual: 55.3 Forecast: 54.7 Previous: 56.5
UK manufacturing PMI - Actual: 55.3 Forecast: 54.0 Previous: 55.2
Asian shares and US futures tumbled on Friday morning session after Federal Reserve Chairman Jerome Powell said that bigger rate hikes could be looming next month. "I would say 50 basis points will be on the table for the May meeting," Powell said at the International Monetary Fund Debate. The Fed in March raised its baseline interest rate by 25 basis points to a range of 0.25 to 0.5 percent.
Crude oil prices reversed from previous session gains weighed down by the prospect of higher interest rates. On the other hand, the downside sentiment is limited after US president Joe Biden decided to place sanctions on Russian oil.
In the currency market, the EURUSD retreats back to below 1.0850 after the US dollar regains upside momentum. On Thursday, the currency pair bounced and reached a fresh 2-week high of 1.0935 after the hawkish comments from the ECB policymakers. GBPUSD plunged more than 130 pips after the UK retail sales slump in March. March's retail sales dropped by 1.4%, compared to market forecasts of a 0.3% decline.
The precious metal struggling to find the upside momentum pressured by strength in U.S. Treasury yields The yield on the benchmark 10-year Treasury note rose 9 basis points to 2.94%. The yield on the 30-year Treasury bond moved 9 basis points higher to 2.96%.
On the data front, the US Initial jobless claims came in slightly higher than expected at 184,000 for the week ending April 16, showing a decline of 2,000, the Labor Department reported Thursday.
Moving ahead today, the important events to watch:
Canada – Retail Sales: GMT – 12.30
US – Manufacturing PMI: GMT – 13.45
Worldwide, more than 503 million people have been confirmed infected and more than 6.19 million have died. The United States has confirmed over 80 million cases and has had more than 988,000 deaths from COVID-19, the highest total in the world.
Technical Outlook and Review
EURUSD: The currency pair retreated back to below 1.0800. Any break below 1.0770 will open the doors to 1.0750 and 1.0720. On the upper side, the immediate resistance at 1.0840/50.
The important levels to watch for today: Support- 1.0770 and 1.0750 Resistance- 1.0840 and 1.0870.
GOLD: The yellow metal trading weaker below $1950 supported by $1936. Today, gold is again expected to face resistance at around $1960 along with support around $1936 and $1930.
The important levels to watch for today: Support- 1936 and 1930 Resistance- 1950 and 1965.
Quote of the day - “Don’t worry about what the markets are going to do, worry about what you are going to do in response to the markets.”- Michael Carr.