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US Futures Shrug Off Moderate Gains in Europe

US equity markets are on course to open flat on Tuesday following a decent start in Europe where indices are currently posting moderate gains.

EUR and GBP gain on multi-year highs for UK and eurozone manufacturing PMIs

Europe has been given a boost this morning by the better than expected April manufacturing PMI data for the eurozone and the UK. The final eurozone PMI release hit a six year high while the UK rebounded from three months of declines to record its fastest growth in three years. Both currencies are making decent gains this morning on the back of the data and could test last week’s highs, with both trading near key technical resistance levels. A break of these could spur further gains in the coming weeks.

USD/JPY – Yen Ticks Higher in Thin Holiday Trade [1]

French election to remain in focus ahead of this weekend’s vote

While traders continue to have one eye on the data, the French election is likely to remain at the forefront of their minds this week, with the second round of voting taking place this weekend. Emmanuel Macron remains the runaway favourite in the polls which is supporting risk appetite at the moment but traders may retain a slightly cautious approach given the experience of last year’s voting in the UK and the US.

Fed decision key this week despite rate hike being all but priced out

Earnings season continues to be another key focus for investors and this week we’ll also get the latest monetary policy decision from the Federal Reserve as well as the April jobs report. While a rate hike at the meeting tomorrow is all but priced out, the probability of one at the meeting in June is currently just shy of the 70% level that is widely seen as the threshold for such a move. Tomorrow’s statement will therefore be very closely monitored in the absence of a press conference from Chair Janet Yellen.

Fed in Focus, Risk On [2]


For a look at all of today’s economic events, check out our economic calendar [4].


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam [9]

Senior Market Analyst, UK & EMEA at OANDA [10]
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

Latest posts by Craig Erlam (see all [9])