Brent: Future is Still Sunny
What happened? Brent returned to the rising channel on Wednesday by gaining 4% during the trading session…
EUR/USD : Targets 1.25 area
Information is not investment advice
Ichimoku Kinko Hyo
CHF/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
Fibonacci Levels
XAG/USD: Silver continuous to stand below 23.6% retracement area. There is a consolidation momentum the last days.
EU Market View
Asian equity markets were mixed after failing to sustain the early momentum from the constructive mood on Wall Street. Asian tech and growth stocks rallied on Friday, following Wall Street's overnight lead, as investors tempered fears about hot inflation and the prospects of an early tapering of stimulus by the Federal Reserve.
The dollar hovered around recent lows on Friday and was set to notch a modest weekly drop as traders' concerns at taper talk in Federal Reserve minutes faded, though a pullback in commodity prices and nerves about virus outbreaks kept losses in check. The dollar has given back a bounce it made after a mention of possible future tapering discussions, in minutes from the Fed's April meeting, prompted fears of early rate rises. Investors now figure that any action remains a long way away and that the path might again be clear for a resumption of April's downtrend as the U.S. trade and account deficits weigh.
US President Biden’s administration has proposed a global tax on multinational corporations of at least 15%. European stock markets are seen opening largely higher Friday, continuing the strong gains from the previous session as optimism over the region’s outlook strengthens as it gradually gets to grips with the Covid-19 pandemic. Earlier, U.K. retail sales jumped 9.2% on the month in April, a substantial rise from the 5.1% increase the previous month, and indicative of consumers returning as shops gradually reopened.
Looking ahead, highlights include EZ, UK and US Flash PMIs, UK Retail Sales, Canadian Retail Sales, EZ Consumer confidence, Baker Hughes Rig Count, ECB’s Lagarde and de Guindos, Fed’s Kaplan, Bostic, Barking, and Daly speeches.
Oil prices edged higher Friday, recovering some lost ground after three days of selling as traders started to factor in the potential return of Iranian crude supplies. Iran and world powers have been in talks since April on reviving the 2015 deal which limited Iran’s nuclear program. These talks appear to be making progress after Iran's president said the United States was ready to lift sanctions on his country's oil, banking and shipping sectors.
EU Key Point
- UK April retail sales 9.2% vs +4.5% m/m expected.
- Moderna reportedly considering producing COVID-19 vaccine in Asiα.
- Germany reports 8,769 new coronavirus cases, 226 deaths in latest update today.
- Japan will not administer AstraZeneca vaccine - will continue to monitor clot cases.
- Some (small) USD strength showing up in Asia.
- Iran is readying a hike in its oil exports to "maximum capacity" within months.
- Japan's negative CPI result in April being blamed on plunge in mobile phone costs.
- Australia Retail sales for April, preliminary: 1.1% m/m (expected +0.5%).
- Fed's Kaplan spoke again (US Thursday) - repeated his call for talking about taper.
Gerasimos Papagiannis
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