Here’s what you need to know on Tuesday, May 4th:
After another positive day, markets are wary on Tuesday, sending the dollar up and everything else down. Fed Chairman Powell said the recovery is patchy and supply problems appear to be slowing growth in the US. Cryptocurrencies, gold and oil are struggling.
US dollar gains strength across the board despite declining Treasury bond yields… The yield on 10-year bonds is about 1.61%. Jerome Powell, chairman of the Federal Reserve, spilled cold water on the recovery and stressed that low-income people are still struggling to get back to work. His colleague John Williams also said the US economy has a long way to go.
IN US ISM Manufacturing Purchasing Managers Index disappointed with 60.7, with comments showing that companies are struggling with higher prices and supply chain problems. On the agenda are the numbers of factory orders for March.
EUR / USD are changing hands closer to 1.20 as the EU considers lifting some travel restrictions. Pound / US dollar is at 1.39 ahead of the final Markit Manufacturing PMI for April.
Gold trading below $ 1,790 after rising to $ 1,800 on Monday. WTI crude is trading around $ 64, below the highs.
IN Reserve Bank of Australia left the interest rate unchanged at 0.1% and said that I would consider changes in his bond buying scheme at the July meeting. AUD / USD is trading above 0.77 but below the highs.
Vaccine: US may approve Pfizer / BioNTech vaccine for children ages 12-15, increasing chances of herd immunity. Immunization rates are slowing down and America is forced to surplus vaccinations to other countries. The Greater New York area will take steps to get back to normal.
Prime Minister of India Narendra Modi refuses to quarantine despite the dire situation in his country. Concerns about the options emerging from the Asian giant are weighing on the markets somewhat.
Cryptocurrencies: Bitcoin is trading around $ 56,000 after falling to lower levels, while Ehtereum is consolidating its gains above $ 3,300. XRP fell below $ 1.48.