5/3/2021 8:37:21 AM GMT
The month of April was not a good one for dollar bulls. The greenback has posted its first monthly decline of 2021, erasing over 2 per cent of its value against six major currencies.
According to the latest data from the Commodity Futures Trading Commission, the net short positions on the dollar reached $10.27 billion against its major peers. That is more than $2 billion net shorts added compared to a week earlier and the highest in six weeks.
The dollar’s decline followed three back-to-back monthly gains as data began to show the US economy recovering at an amazingly fast pace, leading to higher inflation expectations and bond yields suggesting sooner than anticipated tightening in monetary policy.
Post-Pandemic Travel Demand Fuels Cruises And Airlines
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April showers bring May flowers, and they are blooming today on Wall Street on the first trading day in May. Even though stocks were lower on Friday, the S&P 500 was up 5.6% in April and has been up the past 3 consecutive months. Year to date, the S&P is up 11%. The Nasdaq rose 7% in April and the Dow gained 2.74%.
While many say sell in May and go away, the start of the month is being met with buying. Investor confidence in stocks is being bolstered by good earnings and reopening trades. Berkshire Hathaway reported a 20% gain in operating earnings, to $7.02 billion from $5.87 and net income was $11.7 billion versus a loss of $49.7 billion in the prior year period. And the company has been buying large amounts of its own stock. The company also announced that when the Oracle of Omaha, Warren Buffet steps down, Greg Abel, vice chairman of all non-insurance operations, will take the helm.
by Tyler Durden
Monday, May 03, 2021 - 09:20 AM
The key event in the first week of May will be another outstanding jobs report with April nonfarm growth expected around 950k (some whispers have it as rising as high as 1.5 million, a number that will unleash another reflation tantrum) and the unemployment rate dropping to 5.7% from 6.0% in March. ISM surveys are likely to push even higher in April, with the manufacturing index rising to 66 and services reaching a new record of 65. As BofA summarizes, with the US economy reopening amid vaccinations, real activity should be robust.
While more than half of S&P companies have now reported, and we are due for a slowdown in earning season, there is still a bevy of heavyweights reporting including iRobot and Chegg on Monday, Pfizer, TMobile on Tuesday, GM, PayPal and Rocket on Wednesday, Moderna, Square and Roku on Thursday and retail darling DraftKing on Friday.
USD/JPY Hits Session Low as ISM Manufacturing Misses Forecast
2021-05-03 14:45:00
Rich Dvorak,
Analyst
USD/JPY PRICE OUTLOOK: US DOLLAR EXTENDS PULLBACK ON ISM MANUFACTURING PMI MISS
US Dollar under pressure as Monday’s trading session gets underway
USD/JPY price action sliding to daily lows following softer PMI data
ISM manufacturing was reported at 60.7 versus the 65.0 forecast
The US Dollar is hitting new session lows right now in the wake of disappointing PMI data just released by the Institute of Supply Management. USD/JPY currently trades 34-pips lower intraday with the move to the downside nearly erasing last Friday’s sharp rise. According to the DailyFX Economic Calendar, the ISM manufacturing PMI crossed market wires with a reading of 60.7, which was below the 65.0 forecast. The weaker-than-expected PMI report also reflects a deceleration in manufacturing activity from last month’s print of 64.7, but the sector continues to expand nonetheless.
US Dollar weakness was prevalent for most of April with the DXY Index sinking nearly -3% lower, but the Greenback rebounded sharply into month-end. Where is EUR/USD, GBP/USD, and USD/CAD headed next?