The U.S. dollar climbed modestly in early Friday trading, with the euro under pressure following a round of disappointing economic data.
Preliminary PMI figures for the eurozone missed analysts expectations, hitting markets in Europe, and driving German bund yields to below 0 for the first time in two years.
The time is ripe for euro zone countries to deepen the monetary union and strengthen the currency's global role, but they still have to overcome differences on fiscal instruments for a future common budget, the head of its ESM bailout fund said on Friday. Speaking at a conference in Lisbon, where Eurogroup chairman Mario Centeno made a similar call, Klaus Regling said the ESM's discussions with investors had shown that they are closely looking at the topic of the currency's global role.
The Dow fell 282 points, or 1.09%, by 9:55 AM ET (13:45 GMT) while the S&P; 500 slipped 27 points, or 0.94%, and the tech-heavy Nasdaq composite was down 85.5 points or 1.08%.
The weak data out of Europe is underpinning gold today despite the stronger U.S. Dollar Index. Weak data means lower interest rates in the Euro Zone and lower rates tend to be bullish for gold. In the U.S., traders will get the opportunity to react to the latest Flash Manufacturing PMI and Flash Services PMI at 13:45 GMT. Weaker-than-expected data should be bullish for gold.
U.S. stock futures took a hit early Friday after data showed a reading on German manufacturing fell to its lowest level since 2012. Dow Jones Industrial Average futures slid 133 points, or 0.5%, to 25,877, while S&P 500 futures fell 13.35 points, or 0.5%, to 2,849.25. Nasdaq-100 futures dropped 32.5 points, or 0.4%, to 7,502.25. Stock futures pushed lower after the Markit manufacturing purchasing managers index for German slid to 44.7, its lowest reading in over six and a half years. "The downturn in Germany's manufacturing sector has become more entrenched, with March's flash data showing accelerated declines in output, new orders and exports," said Phil Smith, economist at IHS Markit, in a press release. Losses were widespread, with the euro dropping 0.7% to $1.1298 and the Stoxx Europe 600 index falling 0.5% to 378.60.
Gold prices initially rallied during Thursday’s session, reaching towards the $1325 level before rolling over significantly. The gold prices have broken below the $1310 level and formed a bit negative candle. The crude oil price has failed to break above the $60 level in yesterday’s session and has pulled back slightly.
After the show of strength in the Wednesday’s session, the pair gave back the gains in Thursday’s session, breaking below the 1.14 level once again. The region above the 1.14 level has been extremely resistive for the pair and given the ECB’s softer stance on interest rate hike as well, the pair will continue to struggle and remain volatile. The 1.1350 level underneath is strong support and likely to attract value. …Read MoreGBP/USD
After yesterday’s losses, EUR/USD jumped to fresh day highs bouncing off two support points in the last three days. The pair is expected to end the week on a positive note.
Euro gains on the positive outcome in key European events. Investors now await macro data updates for short term trading cues.
It’s a big day for the markets. Private sector PMI numbers out of Europe and the U.S will give some guidance on where the economy is heading.
Economic data comes back into focus today. The Eurozone’s private sector PMI numbers will indicate whether the slowdown was temporary or worsening…
Investing.com - The Eurozone economy ended the first quarter on a low note as the two largest manufacturing sectors in the region contracted in March.
investing.com -- The British pound is recovering in early trade in Europe on Friday from a buffeting Thursday after the European Union agreed to only a minimal extension of the deadline for Brexit.
Investing.com - The U.S. dollar fell on Friday in Asia as traders digested the latest news on Brexit and Sino-U.S. trade development.
Based on the current price at $1309.00, the key downtrending angle to watch into the close is $1307.80.
The U.S. dollar climbs in early Thursday trading, retracing some of its losses from the previous session that it incurred after the Federal Reserve reiterated its dovish monetary policy stance.
British Prime Minister Theresa May addressed the U.K. last night regarding Brexit. This came after continuous failed efforts for the Parliament to come to an agreement. Yahoo Finance's Adam Shapiro, Julie Hyman, and Oscar Williams-Grut join National Taxpayers Union Senior Fellow Mattie Duppler & RSM Chief Economist Joe Brusuelas to discuss.