News, Trend, & Analytics 06.05.2021

Today the focus is on the elasticity of European stocks, new troubles for Boeing, and US payrolls.

 

Calendar

8:30 UTC

The British Composite PMI for April will be released. Forecast: 60.0. If the results are lower than predicted, the GBP could receive negative pressure.

Assets to trade: GBP/USD, EUR/GBP, GBP/AUD


11:00 UTC

The Bank of England will announce its Interest Rate Decision. Forecast to remain 0.10%. If the rate rises, the GBP will receive a bullish push.

Assets to trade: GBP/JPY, GBP/CAD, GBP/NZD


12:30 UTC

The US Initial Jobless Claims data will be published. Forecast: 540K. If the data is above expectations, the USD could receive a negative push.

Assets to trade: USD/CAD, USD/CHF, USD/JPY

 

News

European stocks bounced back on Wednesday after a sharp selloff in the previous session, helped by gains in commodity and banking stocks, while optimism about a strong earnings season and a speedy economic recovery dominated the markets. Affects Euro STOXX 50


Two senior U.S. Senate Democrats on Tuesday proposed spending $73 billion to electrify the nation’s 70,000 transit buses as part of a push to move the United States toward zero-emission transportation. Affects Brent


U.S. private payrolls increased in April as companies rushed to boost production amid a surge in demand, suggesting the economy gained further momentum early in the second quarter, powered by massive government aid and rising vaccinations against COVID-19. Affects S&P 500


U.S. air safety officials have asked Boeing Co to supply fresh analysis and documentation showing numerous 737 MAX subsystems would not be affected by electrical grounding issues first flagged in three areas of the jet in April, two people familiar with the matter told Reuters. Affects Boeing


U.S. Trade Representative Katherine Tai said on Wednesday that she expects to engage with top Chinese trade officials “in the near term” to assess their performance in implementing the “Phase 1” trade agreement between the two countries. Affects USD

 

Technical Analysis

S&P 500

The US index has been on an upward trend since the beginning of the Biden administration took office. Upward momentum has stalled as the economy continues to play catch up with markets.

The index is trading within channel, and will likely bounce back up from its bottom support line.

Visa

Prices are testing its new support level around 231.04. Quotes could bounce back upward.

Tesla

The electric car company has been slowly trending upward with its support line.


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