News and analysis

New Zealand’s unemployment rate jumps more than expected despite a collapse in labour force participation, putting the Reserve Bank of New Zealand closer to cutting interest rates before the US Federal Reserve. NZD/USD fell sharply while AUD/NZD rose to new cycle highs.

A surprise rise in US wage pressures weighed on sentiment on the eve of the Fed meeting, sending the US dollar broadly higher, Wall Street lower as AUD/USD suffered its second worst day of the year.

US dollar traders will be watching Fed Chairman Powell’s press conference and any decisions about the central bank’s balance sheet runoff as potential market-movers for the US Dollar Index (DXY)

Stocks are set to open lower and are set to fall across April, marking the first monthly decline since October. The selloff in stocks comes as the market frets over sticky inflation and the prospect of higher rates for longer. Today, the Fed kicks off its 2-day FOMC meeting and no change in rates is expected at the announcement tomorrow. Amazon will report after the close.

WTI Crude Oil's momentum is shifting gears from MENA tensions towards economic growth statistics

EUR/USD boosted by German and Eurozone GDP expansion, although the ECB is still likely to cut in June even if the pace of subsequent cuts may be slower. US data highlights include FOMC, NFP and ISM surveys this week. Meanwhile EUR/USD technical analysis point to potential rise to $1.08.

DAX struggles despite signs of the economy improving. FTSE rises as HSBC impresses, China manufacturing expands.

EUR/USD looks tired ahead of key inflation and GDP data from the continent later Tuesday, struggling to hold the gains which took it to two-week highs on Friday.

The Nasdaq 100 is poised to snap a 5-month winning streak by Tuesday's close, which begs the question as to if the old adage 'sell in May and go away' arrived a month early.