Here’s what you need to know on Wednesday 5 May:
Markets are stabilizing and the dollar bounced off its highs after taking no risks on Tuesday, which was partly prompted by Treasury Secretary Yellen’s comments on the rate hike. ADP and ISM Services PMI data is monitored. Commodities are on the rise and cryptocurrencies are stable.
Minister of Finance Janet Yellen said that if necessary, interest rates could rise to combat inflation, in comments that caused excitement in financial markets. The former Fed chairman later clarified that her comments were not intended to predict price increases or higher borrowing costs, and that she respected the bank’s independence. Nevertheless, the dollar jumped on Tuesday and the stock fell.
ADP data on the labor market in the private sector should show an increase of 872,000 items in April, up from 517,000 reported in March. However, the correlation between payroll data and official figures is not always obvious.
Change in ADP employment in the US: industrial caution
IN ISM Service Purchasing Managers Index should show acceleration from the already high level of 63.7 in March. The employment component is seen as another nod to Friday’s nonfarm payrolls report.
April ISM Service PMI Survey: Inflation remains key as recovery picks up strength
Virus: India continues to grapple with a serious wave of COVID-19, and forecasts point to an increase in deaths in the coming days. In Europe, vaccination continues at full speed and Germany is reporting a decline in incidence. US President Joe Biden announced a change in vaccine distribution to reach more people in remote locations.
EUR / USD hovers around 1.20 ahead of the final service PMI and the release of new EU economic forecasts. GBP / USD is hovering around 1.39 amid rising tensions following the decision of the Bank of England on Thursday.
NZD / USD jumped further to 0.7150 after New Zealand reported an unexpected drop in unemployment to 4.7% in the first quarter of the year.
Copper resumed growth, along with other commodities. Prices are up about 70% from the March 2020 low, according to Bloomberg.
Cryptocurrencies: Bitcoin hovers above $ 54,000 and Etehreum below $ 3,300 as digital assets are trading in a range. Dogecoin stands out with another rally, hitting $ 0.69 at the time of writing. The cryptocurrency, which began as a joke, has received high-profile mentions in recent days.
See Dogecoin Price Prediction: DOGE At Reverse After New All-Time Highs