Silver breakout to 2-month high

“If you can push through that feeling of being scared, that feeling of taking a risk, really amazing things can happen.” — Marissa Mayer

MARKET NEWS

Ethereum rally continues, with price topping $3,000 for first time

Ethereum, the world’s second-largest cryptocurrency by market cap, topped $3,000 for the first time Sunday. As of Sunday night, Ethereum (ETH/USD) was at an all-time high of $3,035. Just a year ago, it traded for about $208 — an increase of 1,359%, according to data from Kraken. 

Silver Leads Precious-Metals Gains on Dollar, Factory Data – Bloomberg

A gauge of factory activity fell in April from a more than 37-year high a month earlier, according to data from the Institute for Supply Management released Monday. Slower expansion in U.S. manufacturing reinforces expectations that central banks including the Federal Reserve will keep interest rates near zero. Low rates bolster demand for precious metals, which don’t offer interest.

XAU/USD hits two-month highs, still under $1800 – FX Street

Gold is rising by more than 1% on Monday, boosted by a decline in US yields, optimism and a slide of the US dollar. The positive tone remains intact in gold, but while under $1800 gains seem limited. The mentioned area capped the upside several times during April and is a key level.

USD/JPY Hits Session Low as ISM Manufacturing Misses Forecast – Daily FX

Relatively softer PMI data may be causing an unwind of US Dollar strength seen late last week in response to Dallas Fed President Robert Kaplan suggesting it is time to start talking about FOMC tapering.

AUD/USD climbs above 0.7760 ahead of RBA's policy announcements – FX Street

At the start of the week, the USD's market valuation remained the primary driver of AUD/USD's action. With risk flows returning to markets on Monday, the US Dollar Index (DXY) turned south

Corporate America Rides Wave of Inflation to Record Profits - Bloomberg

Faced with rising prices for everything from lumber to oil to labor and computer chips, chief executive officers have cut costs and boosted prices for their products. The strategy appears to be working, with first-quarter income from S&P 500 companies jumping five times as fast as sales.

Oil Prices Slip as Pandemic Takes Toll on India’s Fuel Sales – FX Empire

Oil prices fell on Monday as a catastrophic second wave of a coronavirus epidemic in India cut short a recovery in oil demand there, offsetting optimism about a strong rebound in consumption in developed countries and China in the second half of the year.

MORE HEADLINES

•    Warren Buffett has named Greg Abel as his heir apparent at Berkshire Hathaway. – Business Insider
•    US sets pandemic-era high for air travel, over 1.6 million – Yahoo! Finance
•    United States ISM Manufacturing PMI came in at 60.7, below expectations (65) in April – FX Street
•    Ethereum co-founder Vitalik Buterin becomes billionaire as Ether hits $3K - CoinTelegraph
•    Ebay exploring crypto payment options and NFT auctions - CoinTelegraph
•    Fed’s Williams says inflation to top 2% for rest of the year but decline after economy is recovered - MarketWatch
•    McConnell predicts ‘zero’ Republican support for Biden jobs and families plan – Market Watch

ANALYSIS

Reserve Bank of Australia Preview – FX Street

ANZ Bank: “We don’t think the RBA will signal any adjustments to its policy mix. The cash rate target will be expected to remain at 0.1% ‘until 2024 at the earliest’, quantitative easing (QE) will continue, the expectation that the term funding facility (TFF) will end in June will remain and the RBA will reiterate that a decision about whether or not to roll the 3y yield target will be made ‘later in the year.’ The most likely date for this decision is the RBA’s August meeting, though Governor Lowe has a key speech in July where he may provide a clear signal of intent about this and also the likely size of the QE extension that we expect to occur when the current one ends.”

CHART

EUR/JPY – Daily Candlesticks

Source: GKFX Prime Metatrader 4 

NAS100 has formed bearish RSI divergence near its record high. The indicator signal suggests lower prices but can produce false signals in an uptrend - Prepared by Trading Writers*

CALENDAR

*Times in GMT

 
Source: FX Street Economic Calendar

Footnotes

1.    https://www.fxstreet.com/economic-calendar
2.    https://www.fxempire.com/news/article/oil-rises-to-67-725808
3.    https://ca.finance.yahoo.com/news/silver-leads-precious-metals-gains-160659841.html
4.    https://www.fxstreet.com/news/gold-price-analysis-xau-usd-hits-two-month-highs-still-under-1800-202105031538
5.    https://ca.finance.yahoo.com/news/us-sets-pandemic-era-high-151835807.html
6.    https://www.dailyfx.com/forex/market_alert/2021/05/03/usdjpy-hits-session-lows-as-ism-manufacturing-misses-forecast.html
7.    https://cointelegraph.com/news/ethereum-co-founder-vitalik-buterin-becomes-billionaire-as-ether-hits-3k
8.    https://ca.finance.yahoo.com/news/corporate-america-rides-wave-inflation-173536710.html
9.    https://markets.businessinsider.com/news/stocks/greg-abel-profile-background-warren-buffett-successor-berkshire-hathaway-ceo-2021-5-1030380049
10.    https://www.marketwatch.com/story/feds-williams-says-inflation-to-top-2-for-rest-of-the-year-but-decline-after-economy-is-recovered-11620066120
11.    https://www.marketwatch.com/story/mcconnell-predicts-zero-republican-support-for-biden-jobs-and-families-plan-11620060546
12.    https://www.fxstreet.com/news/aud-usd-climbs-above-07760-ahead-of-rbas-policy-announcements-202105031758