What you need to know on Tuesday, May 4:

The greenback gave back most of its Friday’s gains, amid a better market mood. China, Japan and London were on holidays, limiting volatility.

Markit published the final readings of its April Manufacturing PMIs for the EU and the US, all of them suffering modest downward revisions. The US official ISM Manufacturing PMI resulted in 60, below expected but still indicating substantial growth. Indexes advanced while government bond yields eased, reflecting a positive market’s mood.

The EUR/USD pair remained above the 1.2000 threshold ending the day at around 1.2060. GBP/USD regained the 1.3900 mark but remained below 1.3930. Commodity-linked currencies also strengthened, as gold approached the 1,800 mark to settle around $ 1,790 a troy ounce. Oil prices were also higher, with WTI settling at $ 64.40 a barrel.

US Federal Reserve chief Jerome Powell delivered some prepared remarks at a virtual event, noting that the “economy is not out of woods yet but now making real progress,” quite an encouraging line, adding, however, that the struggles persist in the employment sector.

Focus now shifts to the RBA´s monetary policy decision as China and Japan extend their holidays.

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