Dollar Holds Gains, ISM Data Eyed

USD

The dollar index which measures the greenback against a basket of major currencies protected prior gains and traded near 91.38. The recent rebound came in after a clear rally in US Treasury yields on upbeat economic data. Market participants are looking forward to several economic releases this week among them ISM manufacturing PMI, non-manufacturing PMI, and the US jobs report. The USDJPY rose to 109.66, the EURUSD dipped to $1.2013, and the GBPUSD declined to $1.3800.

Equities

Futures tied to major US stock indices kicked off the first trading hours of May on a strong note, recovering partially from Friday's dip. Investors were seen taking some profit ahead of the close on Friday, after a tremendous rally in April. The strong earning season along with solid economic data boosted investors' risk appetite, driving indices to record highs. This week holds series of economic data and earnings reports, which investors will be watching closely. The Dow Jones Industrial Average futures rose to 33921, the S&P500 futures inched higher to 4192, and Nasdaq futures hovered near 13900.

Metals

Precious metals prices recovered slightly, as yields retreated while the dollar held steady. The price of a gold ounce rallied to $1779, the price of a silver ounce rebounded to $26.09, and palladium held steady near $2951 after faltering at a record high of $3008.

Oil

Oil prices continued to trade under pressure as investors weigh in the spread of the Indian covid19 variant, relative to recovery hopes. The number of new daily cases is soaring, suggesting tougher restrictions, which could affect oil demand recovery. On the other hand, there are some chatters of a possible deal between the world's superpowers and Iran on removing sanctions on oil exports, which could come back with more oil to the markets. The West Texas Intermediate crude June contract fell to $63.00, and the Brent blend July contract declined to $66.18.

Major Economic Events