US indices were slightly higher on Monday, trying to start another leg higher, while EU bourses were nearly 1% stronger.
Meanwhile, German retail sales exploded higher in March, and the monthly change rose from 2.7% to 7.7%, while the YoY gauge rocketed to 11% from -6.6% previously. The yearly change was expected to be good as the last year’s base was pretty low due to the first round of lockdowns, but the monthly change is impressive due to the third lockdown in place currently.
On the other hand, both German and French manufacturing fell short of expectations in April.
Later in the day, traders will pay attention to the US manufacturing ISM for April, which is expected to improve marginally to 65.0 from 64.7 in March. The inflation subindex called prices paid is forecast to stay near the record highs of 85. The new orders subindex will also be under scrutiny.
In the FX, the USD came under selling pressure and was slowly erasing Friday’s sharp gains. The USDJPY pair was the only exception and was on its way toward 110, despite lower yields today.
The EURUSD pair has so far defended the 1.20 barrier, while Cable jumped off the 1.38 support.
Precious metals managed to book some gains amid falling yields and a weaker dollar. Gold was s seen at around 1,775 USD, and silver rose back above the 26 USD level.