What you need to know on Tuesday, May 4:
The dollar trimmed most of its gains on Friday amid better market sentiment. China, Japan and London were on vacation, limiting volatility.
Markit released final readings of its April manufacturing PMIs for the EU and the US, all undergoing modest downward revisions. The official US ISM Manufacturing PMI posted a 60, lower than expected, but still indicating substantial growth. Indices advanced while government bond yields declined, reflecting positive market sentiment.
The EUR / USD pair held above the 1.2000 threshold ending the day around 1.2060. GBP / USD recovered the 1.3900 level but remained below 1.3930. Commodity currencies also strengthened as gold moved closer to $ 1,800 to settle at around $ 1,790 a troy ounce. Oil prices also rose, and the WTI settled at $ 64.40 a barrel.
US Federal Reserve Chairman Jerome Powell delivered some prepared remarks at a virtual event, noting that “the economy is not out of the woods yet, but now it is making real progress,” quite an encouraging line, and added, however, that struggles persist in the employment sector. .
The focus now shifts to the RBA’s monetary policy decision as China and Japan extend their holidays.
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