• Historically the first trading session after the NFP, is the least volatile and yesterday’s session held true to that statement. From an economic news point, the highlights of this week include, Thursday’s Bank of England Monetary policy Decision and Friday’s US Retail Sales. The USD is basically at two-week high against the bulk of European currencies despite the recent miss in payrolls.
• Stocks: Wall Street put in a mixed performance overnight, undercut by tumbling oil prices amid expectations that U.S. crude inventories would again build to record highs. DJIA closed slightly lower by -34.82 pts, or -0.2%, at 17705.91. S&P 500, on the other hand, rose 1.55 pts, or 0.08%, to close at 2058.89. Asian markets are mixed with Nikkei trading higher by 1% at the time of writing.
• Currencies: In the currency markets, the USD gains on Tuesday, pushing above 108.74 against the JPY and 1.13 against the EUR despite a broad-based pullback in U.S. Treasury yields. The JPY is, together with the AUD, the weakest currency in FX this week, after a warning from Japan’s finance minister that Japan will intervene if one-sided yen moves persist. Resistance now lies at 109.25 and 110.00.
• OIL and GOLD: U.S. crude oil was down 0.3% in early Asian trade at $43.31 a barrel, after shedding 2.8% on Monday. Brent crude dropped 3.8% overnight to settle at $43.63 before edging higher. The USD’s gains pushed gold prices lower with the precious metal falling to a 1-1/2 week low on Tuesday. Prices have flatlined after rallying in the last week of April.
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