- U.S./Chinese tensions continue to dominate trade
- U.S. Initial Claims print at 2.4mln. Near 40 million jobs lost since Corona Virus
- Fed’s Bostic: Not a fan of negative rates
Bias: Risk off
Stock traders tried to ignore the negative market news ahead of Monday’s public holiday, but it continued to pile up, seeing the market end slightly weaker on the day. The negative sentiment came as continued tensions between the U.S. and China combined with news of another 2.4mln Americans losing their jobs last week.
The Big Dollar traded tight ranges against all of the majors, with players content to remain on the sidelines ahead of Memorial Day. Sterling outperformed slightly amid better than expected UK PMI data. The Aussie came back slightly but overall continues to grind higher.
Gold prices eased back slightly, while oil continued to grind higher over the session.
We expect the usual quiet Friday session in Asia ahead of the U.S. long weekend. Data sees Japanese CPI and UK and Canadian Retail Sales. The B.o.J. will also announce on rates, with no change expected.