Morning Juice – Europe Session Prep

Good Morning Traders! This Tuesday we get UK unemployment data, on top of earnings.

Here is what to expect for the day.

Sentiment

Due to negative mood and pressure from the dollar’s comeback, China suddenly lowered its yuan defence and adopted a red line strategy.

China’s first-quarter economic growth exceeded forecasts, with manufacturing output driving the increase and raising hopes that the government may meet its challenging yearly goal.

Oil rose as Middle East tensions remained high and Israel promised to avenge Iran’s extraordinary strike. Best While European and US officials increased their demands for Israel to refrain from a tit-for-tat escalation that may spark a broader war, Israeli military leaders reiterated that their nation had no option but to retaliate to Iran’s drone and missile strike over the weekend.

Japan’s finance minister said he was ready to take action in the foreign exchange market if necessary, but stopped short of his strongest warning, comments that spurred more yen weakening after the currency fell to a new 34-year low overnight.

A plummeting yen is encouraging traders to game plan. How much lower can Japan’s battered currency go, especially with the threat of intervention looming?

Mary Daly, President of the Federal Reserve Bank of San Francisco, reaffirmed that there is no hurry to alter interest rates, citing steady economic growth, a strong labour market, and still-high inflation.

Docket

02:00 ET 
UK Unemployment Rate
Median Forecast 4% | Prior 3.9% | Range 4.1%/3.9%

UK Employment Change SA
Median Forecast 20k | Prior 20k | Range 30k/15k

UK Unemployment Change
Median Forecast 17.2k | Prior 16.8k

05:00 ET
German ZEW Economic Sentiment
Median Forecast 35.5 | Prior 31.7 | Range 45.7/28.0

German ZEW Current Conditions
Median Forecast -76 | Prior -80.5 | Range -70.0/-80.0

Earnings

05:55 ET
United Health Q1 2024 Earnings
Est. EPS $6.59 | Est. Rev. $99.21B

06:45 ET
Bank of America Q1 2024 Earnings
Est. EPS $0.77 | Est. Rev. $25.61B

Johnson & Johnson Q1 2024 Earnings
Est. EPS $2.65 | Est. Rev. $21.39B

07:30 ET
Morgan Stanley Q1 2024 Earnings
Est. EPS $1.66 | Est. Rev. $14.46B

Speakers

04:00 ET
ECB’s Rehn Speaks

05:00 ET
BoE’s Lombardelli Speaks

Good Luck today, Traders!