Daily Pivots: (S1) 1.1156; (P) 1.1181 (R1) 1.1226; More.....

Intraday bias in EUR/USD remains neutral as this point and some more consolidation could be seen. But still, outlook stays bearish with 1.1324 resistance intact and further decline is expected. On the downside, break of 1.1111 low will target 100% projection of 1.1569 to 1.1176 from 1.1448 at 1.1105 next.

In the bigger picture, down trend from 1.2555 (2018 high) is still in progress. Current fall should now target 78.6% retracement of 1.0339 (2016 low) to 1.2555 (2018 high) at 1.0813. Sustained break there will pave the way to retest 1.0339. On the downside, break of 1.1448 resistance is needed to be the first sign of medium term bottoming. Otherwise, outlook will stay bearish in case of rebound.

Daily Pivots: (S1) 1.3051; (P) 1.3114; (R1) 1.3238; More...

Intraday bias in GBP/USD remains on the upside despite today's retreat. Outlook is unchanged that corrective decline from 1.3381 has completed at 1.2865 already. Also, 1.2774 key support level was defended. Rise from 1.2391 is likely in progress. Further rise should be seen to retest 1.3381 high. On the downside, below 1.2987 minor support will turn bias back to the downside for 1.2865 support instead.

In the bigger picture, medium term decline from 1.4376 (2018 high) halted and made a medium term bottom after hitting 1.2391. Rebound from 1.2391 is seen as a corrective move for now. In case of another rise, strong resistance could be seen around 61.8% retracement of 1.4376 to 1.2391 at 1.3618 to limit upside. On the downside, break of 1.2773 support will suggests that such corrective rise is completed and bring retest of 1.2391 low first.

Daily Pivots: (S1) 1.0145; (P) 1.0180; (R1) 1.0200; More.....

USD/CHF is staying in consolidation from 1.0237 and intraday bias remains neutral first. On the upside, break of 1.0237 will resume larger rise from 0.9186 to 1.0342 key resistance. However, break of 1.0126 will turn bias to the downside for deeper decline to 55 day EMA (now at 1.0066).

In the bigger picture, medium term up trend from 0.9186 is extending. Current rise should target 1.0342 resistance next. For now, we'd be cautious on strong resistance from there to limit upside, until we see medium term upside acceleration. On the downside, break of 0.9879 support is needed to indicate reversal. Otherwise, outlook will stay bullish in case of deep pull back.

Daily Pivots: (S1) 110.88; (P) 111.29; (R1) 111.52; More...

USD/JPY drops sharply to as low as 110.28 so far as fall from 112.40 accelerates. Break of 110.84 support adds to the case of bearish reversal. That is, whole rebound from 104.69 has completed at 112.40 on bearish divergence condition in daily MACD. Intraday bias is now on the downside for 109.71 support. Decisive break will confirm this bearish case and targets retesting 104.69 low. On the upside, break of 111.70 resistance is needed to confirm completion of the fall. Otherwise, outlook will now remain cautiously bearish in case of recovery.

In the bigger picture, medium term outlook in USD/JPY remains a bit mixed as it's staying inside falling channel from 118.65, but there are signs of bullish reversal. On the upside, break of 114.54 resistance will revive the case the corrective fall from 118.65 has completed with three waves down to 104.69. And whole rise from 98.97 (2016 low) is resuming for 118.65 and above. However, sustained break of 109.71 will raise the chance that fall from 118.65 is still in progress for another low below 104.62.

Risk sentiments are knocked down heavily in Asia after Trump confused the markets by announcement to push trade war with China to full blown level. Just as investors were told dozens of times by Trump and his administration that both sides were "very close" to a deal, Trump made an about turn to decide to impose new tariffs on Chinese imports. Investors were left clueless on what's next as they were originally prepared for a deal to be announce somewhat in Washington this week.

As Asian markets and DOW futures tumble sharply, Yen rides on risk aversion and surges around the board. Swiss Franc Dollar follow as the next strongest as usual in such situations. Australian Dollar is the weakest one, partly for its tie to China, partly on speculation that RBA could pull ahead rate cut to this Tuesday. Sterling is the second weakest for the moment, paring some of last week's strong gains, then Canadian.

Technically, USD/JPY's steep decline solidify the case of near term bearish reversal. That is, rebound from 104.69 flash crash low has completed at 112.40. Immediately focus is now back on 109.71 support for confirmation. EUR/JPY also breaks 123.65 support today as fall fro 127.50 resumes. Focus is now on 123.39 key support level. Decisive break the will align the outlook with USD/JPY for bearish near term reversal too. AUD/USD also resumes recent fall by braking through 0.6984. Though, EUR/USD, USD/CHF and USD/CAD are range bound.

In Asia, currently, Hong Kong HSI is down -3.22%. China Shanghai SSE is down -4.9%, losing both 3000 and 2900 handles. Singapore Strait Times is down -3.24%. Japan remains in 10-day holiday. DOW future is currently down -465 pts.

Trump to push US-China trade war to full-blown level on Friday

In his tweets on Sunday, Trump complained that the trade deal with China continues "too slower", as "they attempt to renegotiate". Thus, he decided to push trade war with China to full-blown level on Friday, even though Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer are planning to wrap up trade talks with Chinese Vice Premier Liu He in Washington this week.

Trump claimed that the "great economic results" of the US as of late can "partially" be attributed to the additional tariffs China has been paying for 10 months. The included 5% tariffs on USD 50B of high tech goods and 10% on USD 200B of other goods. Trump also claimed that "the tariffs paid to the USA have little impact of product cost, mostly borne by China".

On Friday, Trump will raise the 10% tariffs on the USD 200B of "other goods" to 25%. Additionally, currently "untaxed" USD 325B will be tariffed at rate of 25%.

Trump got full support from Democrat Schumer on trade war escalation, but others unsure.

Trump's move to escalate trade war with China got firm support from Democrat Senate leader Chuck Schumer. Schumer urged Trump to "hang tough on China" in a tweet" and "don't back down". He added "strength is the only way to win with China".

White House economic adviser Larry Kudlow tried to tone down the threat and said trump is merely "issuing a warning here". He told Fox News that " we bent over backwards earlier, we suspended the 25 percent tariff to 10 and then we’ve left it there. That may not be forever if the talks don’t work out"

However, an informal trade adviser to Trump, Michael Pillsbury, clearly disagreed with Kudlow. He said “I take the president’s tweet at face value. I was disappointed that Larry Kudlow downgraded it to a mere warning, which may tend to undermine American credibility as the Chinese delegation prepares its position”.

It's unsure for now whether Trump is really intending to drop the negotiations abruptly. Or, he's just trying to push China for last minute concessions on some key issues. But the act could firstly undermine credibility of the US in negotiations with other countries. And, it could also undermine Trump's own credibility as he's told the public numerous times that a deal was close.

Yuan dives as trade tensions re-escalate, PBoC cut RRR for smaller banks

At this point, it's unsure how China will respond to renewed tariff threats by Trump at this "very last" stage of negotiations. Vice Premier Liu He is originally scheduled to travel to Washington on Wednesday to wrap up the trade deal. It's reported that Trump's erratic change in position shocked Chinese officials. but so far there is no decision made on whether to cancel Liu's trip or even cancel all trade negotiations. There are rumors that Liu is only delaying the trip by a few days.

At the same time the PBoC announced to lower the Reserve Requirement Ratio for small to medium banks starting next Wednesday on May 15. The move is expected to to release CNY 280B in long-term funds to the markets.

Chinese Yuan tumbles sharply today in reaction to all the news collectively. USD/CNH (off-shore Yuan) hits as high as 6.8214 after gapping up. Technically, the development suggests that pull back from 6.9800 (2018 high) has completed at 6.6699, after hitting 38.2% retracement of 6.2354 to 6.9800 at 6.6956. It's a bit early to say, but 7 handle in USD/CHN could be at risk again if trade tensions worsen further.

RBA and RBNZ rate cuts to highlight the week, UK GDP, US CPI also watched

Two central banks will meet this week RBA and RBNZ. RBNZ is generally expected to cut OCR by -25bps to 1.50%. That's rather certain. Opinions on RBA is divided though. Much weaker than expected Q1 CPI prompted speculations of an imminent cut this week to 1.25%. But as employment market remains robust, RBA could opt for standing pat again first before deciding to act in August. We believe the key would lie in new economy projections as presented in the SoMP. There could be enough reasons for a pre-emptive cut should inflation outlook materially worsen in the new projections.

In addition to the the two central bank meetings, ECB will also release monetary policy accounts but that will likely be a non-event, given that the central bank's view is rather clearly conveyed already. Some important economic data will also be featured, including US CPI, UK GDP, Canada employment and China trade balance.

Here are some highlights for the week:

• Monday: China Caixin PMI services; Eurozone PMI services final, ,Sentix investor confidence, retail sales;
• Tuesday: Japan PMI manufacturing final; Australian retail sales, trade balance, RBA rate decision; New Zealand RBNZ inflation expectation; Germany factory orders; Swiss foreign currency reserves; Canada Ivey PMI;
• Wednesday: UK BRC retail sales monitor; RBNZ rate decision; China trade balance; Swiss unemployment rate; ECB monetary policy meeting accounts; Canada housing starts;
• Thursday: China CPI, PPI; Japan consumer confidence; Canada trade balance, new housing price index; US PPI, trade balance, jobless claims;
• Friday: RBA monetary policy statement; Germany trade balance; UK GDP, productions, trade balance; Canada employment, building permits; US CPI

USD/JPY Daily Outlook

Daily Pivots: (S1) 110.88; (P) 111.29; (R1) 111.52; More...

USD/JPY drops sharply to as low as 110.28 so far as fall from 112.40 accelerates. Break of 110.84 support adds to the case of bearish reversal. That is, whole rebound from 104.69 has completed at 112.40 on bearish divergence condition in daily MACD. Intraday bias is now on the downside for 109.71 support. Decisive break will confirm this bearish case and targets retesting 104.69 low. On the upside, break of 111.70 resistance is needed to confirm completion of the fall. Otherwise, outlook will now remain cautiously bearish in case of recovery.

In the bigger picture, medium term outlook in USD/JPY remains a bit mixed as it's staying inside falling channel from 118.65, but there are signs of bullish reversal. On the upside, break of 114.54 resistance will revive the case the corrective fall from 118.65 has completed with three waves down to 104.69. And whole rise from 98.97 (2016 low) is resuming for 118.65 and above. However, sustained break of 109.71 will raise the chance that fall from 118.65 is still in progress for another low below 104.62.

Economic Indicators Update

Trump tweets tariff threat

Markets closed on Friday in a buoyant mood following a very strong US jobs report for April. The mood was completely reversed at Monday’s open after US President Trump at the weekend threatened to ramp up tariffs on up to $525 billion worth of Chinese goods by Friday, due to the seemingly lack of progress in the US-China trade talks.

The shock announcement, reversing previous decisions to pause in the tariff wars, sent equity markets into freefall. The US30 index fell about 1.9%, the NAS100 index 2.2% though Chinese shares bore the brunt of risk aversion as they opened after a three-day holiday, with the China A50 index slumping as much as 5%, the biggest one-day decline in 15 months. The index is testing the 55-day moving average at 13,097, which has supported prices on a closing basis since January 15. The next possible support point could be the 38.2% Fibonacci retracement of the 2019 rally at 12,678.

China50 Index Daily Chart

As yet there has been no official response to the threat, though the WSJ has commented that there is a heightened risk that China might cancel the trade negotiations which are due to resume in Washington this week. Such an outcome would severely dent risk appetite further.

AUD/USD slumps to 4-month low

Risk aversion was evident across currency markets as well, with risk-beta Australian dollar falling as much as 0.8% versus the US dollar to strike the lowest level since the mini flash crash on January 3. The yen was sought after as a safe haven as USD/JPY fell 0.71% to 110.48, the lowest since March 28.

AUD/USD Daily Chart

China tweaks reserve ratio requirement

China’s PBOC cut the reserve ratio requirement for small and medium-sized banks, mostly those with assets lower that 10 billion yuan ($1.5 billion), by 350 basis points to 8% effective May 15. The funds released are stipulated to be used for lending to small and private firms. The yuan was embroiled in the tariff reaction, so was unable to gain anything from the announcement. USD/CNH gained as much as 1.3% to 6.8210 and could test the 200-day moving average at 8.8245 for the first time since February 19.

USD/CNH Daily Chart

Data forgotten with all eyes on trade talks

Hidden in the melee of risk aversion this morning, China’s Caixin services PMI rose to 54.5 in April, up from 54.4 in March, with the new export orders index climbing the most on record.

Already confined to a distant memory was Friday’s stellar April US jobs report. After such data, risk appetite would normally be soaring and we would be witnessing a follow-on of Friday’s moves. Not today.

The week starts off slowly on the data front, with final April Markit services PMIs for Germany and the Euro-zone seen unchanged from the flash reading while Euro-zone Sentix investor confidence is expected to slip back to -2.1 in May from -0.3 in April. The region’s retail sales are also expected to slow, falling to +2.3% in March from +2.8% in February. There are no US releases, only a speech from Fed’s Harper.

GBP/USD climbed higher recently and settled above the 1.3100 level. EUR/GBP is currently correcting higher, but it is likely to face selling interest near the 0.8550 level.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound gained strength recently and climbed above 1.3040 and 1.3100 resistances.
• There was a break above a declining channel with resistance at 1.3040 on the hourly chart of GBP/USD.
• EUR/GBP declined heavily and broke the 0.8580 and 0.8500 support levels.
• There was a break below a declining channel with support near 0.8540 on the hourly chart.

GBP/USD Technical Analysis

The British Pound formed a strong support near the 1.2880 and 1.2900 levels against the US Dollar. The GBP/USD pair started a fresh increase above the 1.3000 resistance to move into a positive zone.

The pair gained momentum above the 1.3020 level and the 50 hourly simple moving average. During the upward move, there was a break above a declining channel with resistance at 1.3040 on the hourly chart of GBP/USD.

The pair even climbed above 1.3150 and traded as high as 1.3175 on FXOpen. Recently, it started a downside correction below the 1.3150 level and the 23.6% Fib retracement level of the recent wave from the 1.2988 low to 1.3176 high.

On the downside, there are many supports near the 1.3100 and 1.3080 levels. The 50% Fib retracement level of the recent wave from the 1.2988 low to 1.3176 high is also near the 1.3080 level to act as a strong support.

Finally, the 50 hourly SMA is near the 1.3070 level to provide support. Below 1.3070, the price could extend losses towards the 1.3020 level.

On the upside, an initial resistance is near the 1.3150 level, above which the GBP/USD pair is likely to test the 1.3180 and 1.3200 resistance levels in the near term.

EUR/GBP Technical Analysis

The Euro declined heavily from well above the 0.8620 level against the British Pound. The EUR/GBP pair broke the 0.8580 and 0.8550 support levels to enter a downtrend.

The decline was such that the pair even broke the 0.8520 support level and settled below the 50 hourly simple moving average. During the decline, there was a break below a declining channel with support near 0.8540 on the hourly chart.

Finally, the pair spiked below the 0.8500 level and the pair traded as low as 0.8484. Recently, it started an upside correction above the 0.8500 level and the 38.2% fib retracement level of the last drop from the 0.8587 high to 0.8484 low.

On the upside, there is a strong resistance waiting near the 0.8540 and 0.8550 levels. The 50% fib retracement level of the last drop from the 0.8587 high to 0.8484 low is also near 0.8535 to act as a solid hurdle for the bulls.

If the pair fails to move above the 0.8540 or 0.8550 resistance, there could be a fresh decline below the 0.8510 and 0.8500 support levels.

The main support is near the 0.8500 level, below which there is a risk of a break towards the 0.8460 level. On the upside, a successful close above 0.8550 and the 50 hourly SMA is needed for a fresh increase in EUR/GBP in the near term.

STOCKS

Bloodbath in the equities market on early trades today following Trump's tweet to increase the tariff on Chinese imports from 10% to 25% and news about China planning to cancel the trade talks with the US. The Indian equities which have been holding on to their range so far is in a threat to break their range on the downside and fall.

Dow (26504.95, +197.16, +0.75%) can fall back breaking below 26250 and test 26000 following the sell-off in global equities. The Dow futures are down over 400 points in early trades today.

DAX (12412.75, +67.33, +0.55%) can seem some profit booking after a strong rally for two months. A test of 12300-12200 is possible in the near term.

Shanghai (2920.15, -158.19, -5.14%) has tumbled over 5%. The next support is at 2872 (21MA on the weekly chart) which can be tested in the coming sessions. A bounce from there can see a relief rally to 2950.

Sensex (38963.26, -18.17, -0.05%) and Nifty (11712.25, -12.50, -0.11%) may break its respective ranges, 38500-39500 and 11550-11800 on the downside. As mentioned earlier, such a fall in the indices will form a head and shoulder reversal pattern. In that case, Sensex can fall to 38000-37600 and Nifty can test 11300 in the coming days.

Japanese markets are closed today on account of a public holiday.

COMMODITIES

The pull-back in the dollar on Friday has helped gold, silver and copper to bounce back. Further uptick is possible in these commodities before the overall downtrend resumes. Oil has declined further but has key support near current levels. A near-term bounce is possible in oil if this support holds.

As expected Gold (1284.5) has bounced and can test the upper end of the 1266-1292 sideways range. The broder downtrend is intact. But we should allow for a correcitve rally to 1300 before we see a fresh fall 1260-1255.

Silver (14.90) has held well. While the bearish outlook is intact, a corrective rally to 2.85 is possible before we see a fresh fall to 2.72-2.70.

WTI (60.66) has declined below 61 and keeps the bearish outlook is intact. {Support is at 59.95 (21-MA on the day chart).#wti-lines-3-Day">The support at 2.75 in Copper (2.78) While it holds, a corrective bounce to 60 can be seen.

Brent (68.66) has support near current levels at 68.41, which if holds can trigger a bounce to 69-70. But the broader picture is bearish to test 66-65 in the short term.

FOREX

Dollar Index and Euro looks ranged while Yen could strengthen in the near term. Yuan and Aussie looks weak against the US Dollar.

Dollar index (97.56) has immediate daily support at 97.25. Although the index saw a sharp fall from 98.10, it would be important to see if it breaks below immediate support at 97.25. Overall 97.50-97.00 is an important near term support region which if holds could keep the index ranged above 97 for the medium term if not lead to a sharp bounce above 98.50. View is ranged while the index trades above 97.

Euro (1.1188) is also stuck in the 1.11-1.12 range and could continue to remain so in the near term.

Euro-Yen (123.67) has fallen below the lower limit of our mentioned support near 123.80-124.00. Current levels provide support on the daily candles which if fails to hold would make the pair vulnerable to a fall towards 122.50 or lower in the medium term turning the sentiment to bearish. For now watch important support at 123.60.

Dollar Yen (110.56) has broken below immediate support at 111 indicating a clear downward direction for the near term. The Mar’19 low of 109.70 is the next support on the downside which is likely to be tested while the pair trades below 111. Looking at strong correlation of Gold with Yen, while Gold moves up to test immediate resistance at 1290, Yen could strengthen towards 109.70 too in the near term. 3-day candles show scope of falling towards 109. This break in Dollar-Yen below 111 has now turned the sentiment bearish for the coming sessions.

Aussie (0.6974) has also broken below crucial 0.70, indicating a fall towards 0.6950-0.6900 in the near term. Note that 0.70 has been holding since Oct’18 (leaving out the flash crash seen in Jan’19) and a sustained break below 0.70 has now turned Aussie bearish for the medium term.

Trump, yesterday announced an increase in tariff on $200 bln Chinese goods to 25%. This has come in ahead of the meet scheduled with Chinese delegation on Wednesday to end the trade war and lead to a deal to end the conflict.
His tweet stated “For 10 months, China has been paying tariffs to the USA of 25% on 50 billion dollars of High Tech, and 10% on 200 billion dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions of Dollars of additional goods sent to us by China remain untaxed, but will be shortly at a rate of 25%”

USDCNY (6.7877) shot up shortly after the news of tariff rise came in. The pair shot up from 6.7345 to 7.7877 currently. A test of 7.80/81 looks possible on the upside before pausing.

Although Dollar-Rupee (69.2250) has scope of testing 69 on the downside, we could see a gap up opening today taking the pair towards 69.50/60. It would be important to see if Rupee manages to weaken beyond 69.60 today.

INTEREST RATES

The US Yields also have little room to rise on the upside before facing resistance. The 30Yr (2.92%) could face rejection from 2.95% while the 10Yr (2.52%) could face rejection from 2.55%. the 5Yr (2.34%) could rise to 2.35/36% before falling from there.

The UK Gilts have risen slightly but face immediate resistance just above current levels. The 5Yr (0.90%), 10YR (1.22%) and 20Yr (1.66%) have risen from previous levels of 0.87%, 1.19% and 1.63% respectively but could soon see a fall in the near term. View is bearish for the coming sessions.

The US-JGB 10Yr (2.57%) has been stuck at resistance level since last week and indicates a fall towards 2.50-2.45% for the near term. The spread if falls could pull down Dollar Yen also to lower levels (Refer Forex section above)

Trump pours cold water on jobs rally

US President Trump has threatened to ramp up US tariffs on Chinese goods by this Friday as a result of the slow progress in current negotiations. US indices are facing hefty losses this morning as the strong US jobs report on Friday is quickly forgotten.

US30USD Daily Chart

The US30 index has wiped out all of last Friday’s gains and has touched the lowest since April 1 after the Trump tweet

The index has traded below the 55-day moving average at 26,046 for the first time since January 23. The next possible support point could be the 200-day moving average at 25,390

The US economy added 263,000 jobs in April, well above forecasts of a 185.000 gain. The unemployment rate hit 3.6%, the lowest in more than 50 years, though a huge drop in the labour force contributed. The solid numbers are now forgotten as the market focuses on US-China trade talks after Trump’s tariff threat.

DE30EUR Daily Chart

The Germany30 index has retreated from seven-month highs in early trading, echoing the decline in US indices

The rising 55-day moving average is at 11,754, and has supported prices on a closing basis since February 8

Euro-zone investor confidence is seen deteriorating in May, with the Sentix reading falling to -2.1 from -0.3.

CN50USD Daily Chart

China shares fell dramatically at the open this morning following Trump’s threat to place additional tariffs on a whopping $525b of Chines goods by Friday

The index has slashed through the 23.6% Fibonacci retracement of the 2019 rally at 13,272 and is testing the 55-day moving average at 13,075. This moving average has supported prices on a closing basis since January 15

The Wall Street Journal is suggesting that China may even cancel the trade talks, which are due to resume in Washington this week, after Trump’s latest threat. Such a move would be disastrous for risk appetite.

Key Highlights

• The Euro declined heavily, tested 1.1140, and recently bounced back against the US Dollar.
• A key bullish trend line is forming with support near 1.1170 on the 4-hours chart of EUR/USD.
• The US Nonfarm Payrolls increased 263K in April 2019, better than the 185K forecast.
• The Euro Zone Services PMI in April 2019 is likely to remain stable at 52.5.

EURUSD Technical Analysis

This past week, the Euro declined heavily below the 1.1250 and 1.1200 support levels against the US Dollar. The EUR/USD pair tested the 1.1140 support level and recently started an upside correction.

Looking at the 4-hours chart, the pair traded as low as 1.1135 and recently corrected above the 1.1170. There was a break above the 1.1185 level and the 50% Fib retracement level of the last decline from the 1.1265 high to 1.1135 low.

However, there are many hurdles on the upside near the 1.1225 and 1.1240 levels. The previous support arear near 1.1230 is likely to act as a strong resistance along with the 100 simple moving average (red, 4-hours).

The main resistance is near 1.1240, a connecting bearish trend line, the 76.4% Fib retracement level of the last decline from the 1.1265 high to 1.1135 low, and the 200 simple moving average (green, 4-hours).

Therefore, a successful close above the 1.1250 level is needed for a strong rebound in EUR/USD towards 1.1300 or 1.1320. If not, the pair remains vulnerable and it could decline back to 1.1140.

Fundamentally, the US nonfarm payrolls report for April 2019 was released by the US Department of Labor. The market was looking for an increase of around 185K, less than the last 196K.

However, the result was well above the market forecast, as the total nonfarm payroll employment increased by 263K in April 2019. On the other hand, the last reading was revised down from 196K to 189K. Looking at the unemployment rate, there was a drop from 3.8% to 3.6%.

The report added:

The unemployment rate declined by 0.2 percentage point to 3.6 percent in April, the lowest rate since December 1969. Over the month, the number of unemployed persons decreased by 387,000 to 5.8 million.

There was a sharp increase in the risk sentiment after the release, and pairs like EUR/USD and GBP/USD bounced back sharply. Besides, there was an increase in selling pressure on USD/JPY. In the short term, there could be a downside correction in the US Dollar, but it might come back strongly later.

Economic Releases to Watch Today

Germany's Services PMI for April 2019 – Forecast 55.6, versus 55.6 previous.

Euro Zone Services PMI for April 2019 – Forecast 52.5, versus 52.5 previous.

Euro Zone Retail Sales for March 2019 (YoY) – Forecast +2.3%, versus +2.8% previous.