Last week brought a wave of important economic data highlighting a broad slowdown in the U.S. economy. Jobless claims increased, and GDP contracted by -0.3% for the first time in three years. Additionally, job openings, consumer confidence, and private sector employment all declined. However, the Non-Farm Payrolls (NFP) report offered a relatively positive figure of 167,000 jobs.
In the Eurozone, data showed relative improvement, with GDP growing by 0.4% and core inflation ticking higher. In Asia, China, Japan, and Australia reported weaker-than-expected figures, particularly in industrial production and retail sales, reflecting ongoing pressure on economic activity in the region.
Market Analysis
USD/CAD
The USD/CAD pair continued its downward trend, hitting 1.3759 on Friday, May 2, 2025—its lowest level since October 17, 2024. The pair is currently hovering near the 1.3800 mark. The Relative Strength Index (RSI) is at 37, signaling bearish momentum.
Advanced Micro Devices (AMD)
AMD stock has declined around 18% year-to-date. Investors are awaiting AMD’s Q1 earnings report, due Tuesday, May 6, 2025. Analysts expect earnings per share (EPS) to reach $0.95, up from $0.62 previously. Revenue is forecasted to increase to $7.11 billion from $5.5 billion. The RSI currently stands at 54, indicating positive momentum. The MACD shows a bullish crossover between the MACD line (blue) and the signal line (orange), suggesting an upward trend.
Silver
Silver prices dropped to $32 per ounce but remain up about 11% year-to-date. The pullback is linked to lower gold prices, easing trade tensions, and a global industrial slowdown. The RSI stands at 44, indicating bearish momentum. The MACD confirms this with a bearish crossover, suggesting further downside risk.
S&P 500
The S&P 500 rose approximately 3% last week, closing at 5,687 on Friday, May 2, 2025. This marks the index’s ninth consecutive daily gain—the longest streak in 20 years. The rally is driven by strong Q1 earnings from U.S. companies, reduced trade tensions (especially with China), ongoing negotiations between the two countries, and a U.S.-Ukraine agreement regarding natural resources and a joint investment fund. The RSI is at 60, showing bullish momentum, while the MACD also signals a bullish crossover.
Key Economic Events This Week
- Monday:
- Switzerland: Consumer Price Index (CPI)
- U.S.: ISM Non-Manufacturing PMI
- Tuesday:
- China: Caixin Services PMI
- Eurozone & UK: Services PMI
- Wednesday:
- U.S.: Federal Reserve interest rate decision (expected to hold rates between 4.25%–4.50%)
- Fed Chair Jerome Powell’s speech (highly anticipated for monetary policy outlook)
- UK: Construction PMI
- U.S.: Crude Oil Inventories
- Thursday:
- UK: Bank of England interest rate decision
- U.S.: Weekly jobless claims
- Friday:
- Japan: Household Spending
- UK: Industrial Production
- China: New Loans, Exports, and Imports
- Canada: Employment Change and Unemployment Rate
- Saturday:
- China: CPI and Producer Price Index (PPI)
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.
