Here’s what you need to know Friday 15. May:
That The US dollar consolidates its profits from earlier this week following the Federal Reserve’s refusal to set negative rates and President Donald Trump’s support for a strong dollar. Gold and oil are rising for various reasons. One uncovered day, readers are awaiting US consumer data and German growth figures.
Trump’s support for a strong dollar adding oomph to the greenback and his statement that “the era of globalization is over” also raised concern, yet stocks eventually bounced back and the dollar’s progress stopped in its tracks. The president moved up rhetoric against Beijing by also saying that he refuses to talk to Xi Jinping, his Chinese counterpart.
Chinese data: The world’s second-largest economy reported a better-than-expected increase in industrial output in April, vehicle retail disappointed by a sharp decline. Returning to factory work is easier than getting consumers to shop.
American Retail Sales April numbers are the highlight of the day. A decrease of 12% is expected in the heading, with significant decreases also in core figures.
US Retail Sales April Preview: As bad as can be, but still expected
It is being followed up by the University of Michigan’s preliminary Consumer sentiment index for May, which is expected to prolong its decline.
See Preview of American Consumer Sentiment: Triumph of Hope over Experience?
U.S. unemployment claims rose by nearly three million in the week ending May 8, worse than expected. JOLT’s announcement of the job opening for March will provide a different but broad view of the labor market.
More American stimulus? The White House rejected the Democrats’ $ 300 trillion stimulus bill, but remains open to other measures and in particular sends additional checks to Americans. Additional state aid helps to cheer the markets. The Fed has urged Washington to do more.
American coronavirus cases has topped 1.4 million and the deaths are around 86,000. New York area COVID-19 statistics continue to decline, while Texas recorded its biggest leap two weeks after rescinding residency orders. Global mortality from the disease topped 300,000.
eurozone: Economists expect the German economy to shrink by 2.2%, a more moderate scale than its peers in the eurozone. However, there are reasons to expect a sharp decline. Updated euro area statistics are also released.
See German GDP preview: Why to expect the worst since 2009 may be optimistic, EUR / USD implications
GBP / USD has stabilized after falling to the lowest in five weeks. An update on Brexit talks may come at the end of the week.
USD / JPY has consolidated the gain. Tokyo’s governor is slated to announce a plan to ease the closure of the capital.
Gold remains bid after topping $ 1,730, amid the prospects of more monetary and fiscal stimulus as well as speculation. The $ 1,747 multi-year peak is in sight.
oil prices have expanded their rally amid hopes of rising Chinese demand and due to further cuts by OPEC members. WTI oil hovers around $ 28.
Cryptocurrencies have failed to extend their rally, with Bitcoin consolidating around $ 9,500.