Summary: May Day brings sweet news for Apple investors as the stock shoots up more than 5%,, and there's also some suggestion that Friday's nonfarm payrolls might be stronger than expected. Until then, we have the Fed policy meeting to chew over this evening.
Apple’s results were a sweet treat for Wall Street. The three major indices are higher in early trading with this morning’s surprisingly strong ADP employment report providing an assist. ADP said that private sector employment rose by 275,000 jobs in March, which to some, means that Friday’s nonfarm payrolls may be higher than expected.
They won’t cave to Trump’s latest harangue, via Twitter, to lower rates. Nevertheless, the Fed is on record for stating that monetary policy decisions are “data dependent”. Most of the recent data that they depend on, has been on the strong side which not only muted chatter of a looming recession but could change the tone of the FOMC statement. If so, the US dollar will resume its uptrend.
The weaker than expected ISM Manufacturing Index (Actual 52.8 vs forecast 55.0) boosted EURUSD to 1.1243. A break above 1.1270 would shift the focus to 1.1360. A move below 1.1210 would target 1.1150.