This is what you need to know to trade today tuesday may 3:
Markets remain relatively calm on Tuesday as investors refrain from making big bets ahead of Federal Reserve and Bank of England (BoE) monetary policy announcements later in the week. The 10-year US Treasury bond yield continues to move sideways near 3% and the dollar maintains its ground against its rivals. Meanwhile, market sentiment remains cautious with US stock index futures up 0.3%-0.4%. PPI producer price index data and euro zone unemployment, along with US factory orders in March could provide further momentum.
On Monday, the German economy minister said they were not against a block on Russian oil imports and the climate minister said they had been prepared for a ban. The index DAX 30 Germany lost more than 1% on Monday, but Wall Street’s main indices managed to post modest gains.
After hitting its lowest level in nearly four months at 0.7030 on Monday, the AUD/USD rose sharply during the Asian session on Tuesday, now up 1% on the day above 0.7100. The Reserve Bank of Australia (RBA) raised its policy rate by 25 basis points to 0.3% after its monetary policy meeting, surprising investors who expected the central bank to raise its rate by 15 basis points. In its monetary policy statement, the RBA noted that they remain committed to doing what is necessary to ensure that inflation in Australia returns to target over time. In addition, the governor of the RBA, Philip Lowe said further increases in the policy rate will be needed during the next few months.
The EUR/USD closed the first day of the week with small losses and is now trading in a tight range slightly above 1.0500. European Union (EU) diplomat Josep Borell said earlier in the day that more Russian banks will leave the SWIFT payment network as part of a new sanctions package.
The GBP/USD is holding on to modest recovery gains above 1.2500 after losing nearly 100 pips on Monday. The final S&P Global manufacturing PMI for April will be included in the UK economic calendar later in the session.
The Prayed fell to its lowest level since mid-February near $1,850 on Monday before entering a consolidation phase around $1,860 on Tuesday. Market participants continue increasingly concerned about slowing economic activity in China that could spread to other major economies.
For the third consecutive day, the USD/JPY it is moving sideways in a tight range near 130.00. Japanese markets are closed due to the Constitution Day holiday on Tuesday.
The Bitcoin It struggles to find direction and is trading in a tight channel above $38,000. The ethereum trades with modest losses near $2,800 on Tuesday after gaining almost 5% in the previous two days.
Source: Fx Street
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