PMI surveys to bring some action back into markets

Markets remain indecisive to start the last trading day of the week after having struggled to make a directional move throughout the week. S&P Global’s Manufacturing and Services PMI surveys for Germany, the Eurozone, the UK and the US will be watched closely by investors on Friday. Retail Sales data from Canada will be released in the NA session and several European Central Bank (ECB) policymakers will be delivering speeches.

Following Wednesday’s rally, global yields turned south on Thursday and the benchmark 10-year US Treasury bond yield fell nearly 2%, making it difficult for the US Dollar (USD) to outperform its rivals. With Wall Street’s main indexes staying under bearish pressure, however, the US Dollar Index (DXY) managed to find its footing. Early Friday, the DXY continues to move sideways in the upper half of its weekly range near 102.00. Meanwhile, US stock index futures trade virtually unchanged on the day.

The UK’s Office for National Statistics reported on Friday that Retail Sales declined by 0.9% on a monthly basis in March. The annual change improved slightly to-3.1% from -3.5%, matching the market consensus. GBP/USD came under modest bearish pressure following the disappointing data and was last seen trading in negative territory slightly above 1.2400.

For the second straight day on Thursday, EUR/USD closed virtually unchanged near 1.0950. The pair continues to move at around that level in the European morning on Friday. S&P Global Composite PMI in the Eurozone is forecast to hold steady at 53.7 in April’s flash estimate, while the Composite PMI for Germany is expected to tick up to 52.7.

S&P Global Composite PMI in Australia improved to 52.2 from 48.5 in March with the Services PMI rising to 52.6 from 50.7. AUD/USD, however, failed to capitalize on this report and was last seen trading deep in negative territory below 0.6700.

USD/CAD extended its weekly rally on Thursday as the unabated bearish pressure surrounding crude oil prices continued to weigh on the commodity-sensitive Canadian Dollar. The pair preserves its bullish momentum early Friday and trades at its highest in over a week above 1.3500. Retail Sales in Canada are forecast to decline by 0.6% in February.

Gold price benefited from falling bond yields and closed in positive territory near $2,000 on Thursday, erasing Wednesday’s losses. XAU/USD seems to be having a difficult time keeping its footing on Friday and was last seen losing nearly 1% on the day below $1,990.

USD/JPY reversed its direction after having met resistance near 135.00 and extended its slide early Friday. At the time of press, the pair was down 0.3% on the day below 134.00.

Following Wednesday’s sharp decline, Bitcoin failed to stage a rebound and lost nearly 2% on Thursday. BTC/USD continues to stretch lower on Friday and was last seen testing $28,000. Ethereum tried to reclaim $2,000 on Thursday but failed to gather enough bullish momentum to do so. ETH/USD seems to have met fresh bearish pressure in the European morning, dropping toward $1,900.

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