What you should do Tuesday, May 3, 2012:
The American Dollar benefited from a poor market mood, ending the day higher against most major rivals. The combination of increasing tensions between Russia & Europe, negative macroeconomic figures, and concerns about aggressive central bank policies, led to the dismal sentiment. This week, the RBA and the US Federal Reserve will announce monetary policies.
The German Economy Minister Robert Habeck noted that there is still no unity among EU member states on an oil embargo on Russia, although Finance Minister Christian Lindner added that it is still possible. Luis, vice president of European Central Bank, was also present.De Guindos stated that a rate increase in July is possibleAlthough unlikely, it is possible. The EUR/USD currency pair traded lower at the 1.0500 level.
US data mixed expectations. The official ISM Manufacturing Index printed at 55.4, which was much lower than the expected 57.6. Wall Street was pressured throughout the session, but it ended the day mixed as the DJIA & the Nasdaq managed gains.
The GBP/USD currency pair settled at 1.2480. The RBA is 0.7050 ahead of AUD/USD. The central bank will likely raise rates by 15%-25 bps, making it the first time in over 10 years.
Despite higher oil prices, USD/CAD settled at 1.2870. WTI ended the day at around $105.60 a barrel.
JPY and safe-haven CHF lost ground vs. the dollar as well as Gold. The current price of the bright metal is around $1,860 per troy ounce.
China has extended its restrictions due to coronavirus in Beijing, further raising concerns about global economic growth. The official Chinese NBS PMIs, released over the weekend, indicated a sharp economic contraction.
Inflation pressures and SEC delays, XRP proposes lower targets for its price.
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