Sentix Investor Confidence, FOMC Financial Stability Report

The euro traded between gains and losses and finally posted a moderate decline of 0.05% against the dollar on Friday, following U.S employment data that showed hourly wages increased last month at an annual rate of 4.4%, adding more pressure on the Fed to reach its 2% inflation target. However, jobs growth remains robust, with 235K new jobs created, far exceeding the 180K expectation. In addition, the unemployment rate fell to a 53-year low.

Investors now look to the Sentix investor confidence data due from the eurozone and later in the day, the U.S. will publish its monthly wholesale inventories report along with the FOMC Financial Stability Report.

Gold prices fell sharply on Friday, ending the session more than 1.5% lower, following the all-time high of $2,081 seen on Wednesday. The precious metal was boosted by signs that Fed might ease its monetary policy schedule and could potentially pause its rate-hike cycle for this year. Fed funds futures traders are pricing in around 75 basis points of cuts by year-end.

U.S. data remain in the spotlight for investors looking for more clues regarding the health of the economy and the status of global growth. Fed comments and inflation reports, due later this week could attract investors attention.

After reaching as low as $67,28 per barrel, WTI oil started a solid recovery of almost 6% since last Wednesday and marked two consecutive daily gains. The price of the fuel could partly be supported by a healthy U.S. jobs report for April, a weaker dollar, and expectations of supply cuts at the next meeting of the Organization of the Petroleum Exporting Countries and allies.

Investors now turn their focus on U.S. and Chinese economic indicators and specifically price inflation, trade, inflation, lending and money supply data for April, as market participants try to assess the level of economic recovery.

The main U.S. stock market indices rose sharply on Friday, following several daily declines in the previous sessions, with the US 500, the US 30 and the US tech 100 gaining 1.54%, 1.50% and 1.72% respectively after the Non-Farm Payroll report that showed new jobs generated at an accelerating rate while the unemployment rate declined at 53-year lows.

In the spotlight of the earnings schedule is Berkshire Hathaway, PayPal Holdings, Airbnb, Toyota Motor, Walt Disney and Occidental Petroleum. On the news front, investors will be looking towards key consumer, producer, import and export price indexes as well as preliminary Michigan sentiment and expectation readings. In addition, speeches from several FOMC members could also be closely watched.