Forex Today: Slow start to another busy week

FXStreet Team FXStreet

What you need to know on Monday, May 4th:

The American dollar closed Friday mixed, down against its EUR and the JPY but up against other major rivals. Commodity-linked currencies were the ones that suffered the most, as Wall Street plunged.

The US April ISM Manufacturing PMI came in at 41.5, down fro the previous 49.1 but above the expected 36.9. The sub-components, however, were quite disappointing, particularly the employment one, which plunged to 27.5.

US President Trump menaced to impose fresh tariffs on China amid the miss-handling of the coronavirus outbreak, weighing on the market’s sentiment. Wall Street closed deep in the red, further undermined by dismal earnings reports.

UK PM Johnson was optimistic about the coronavirus situation, as he tweeted that the kingdom is “past the peak and on the downward slope.” Nevertheless, it is quite unlikely that the UK will lift the lockdown anytime soon, suggesting an extended economic setback ahead.

Gold prices recovered ground on Friday amid renewed risk aversion. Spot gold settled at around $1,700.00.

US crude oil settled just below $20.00 a barrel after Baker Hughes reported the number of active rigs declined for a seventh consecutive week to 408 from 465 in the previous week.

Cryptocurrencies spent Sunday consolidating near their recent highs. BTC/USD clings to modest gains above $9,000.

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EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.