What you need to know on Thursday, May 7th:

This Thursday will be quite a busy day from the macroeconomic side as it will start with the April Chinese Trade Balance. Later at 06:00 GMT and ahead of London’s opening, the Bank of England will unveil its decision on monetary policy. Volatile Asian session expected.

The final versions of EU Services PMIs came in mixed with downward revisions in Spain and France, although slightly better numbers in Germany and the whole Union. Nevertheless, the economy is at record contraction. EUR/USD fell sub-1.0800.

The US ADP survey showed that the private sector lost over 20 million jobs in April. The report failed to trigger some action across the FX board, although it kept the market’s mood on the negative side.

UK PM Johnson sent some mixed signals. He said the government will decide on how to continue the lockdown on Sunday, instead of this Thursday as previously planned. He expressed concerns about moving to fast triggering a second wage, yet at the same time, hinted measures could be eased as soon as next Monday.

US President Trump continued to escalate tensions with China over the coronavirus pandemic and  the trade deal. Also, the White House announced it may wind down the coronavirus response team in a few weeks, and transfer the pandemic response to federal agencies.

US Treasury yields bounced sharply as the Treasury Department announced a new 20-year note to help fund a record level of borrowing amid the ongoing crisis. The first auction will take place on May 20.

Commodities were under pressure, with WTI settling around $24.00 a barrel and spot gold finishing the day around $1,690.00 a troy ounce. Crude oil prices fell despite the US weekly EIA stockpiles report showed a smaller  than expected build in inventories.

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