(07 MAY 2020)DAILY MARKET BRIEF 1:The USDJPY tests the 106-support

<p>The early week optimism faded on the back of mixed but mostly negative corporate results in the US, hundreds of earning calls proving that the economic collapse due to the coronavirus has been far worse than the 2008 subprime crisis according to a Fed study, and a devastating jobs report.</p>
<p>The ADP report confirmed that the US economy erased more than 20 million private jobs last month. The figure was better than expected, but at this level, the better-than-expected is already cataclysmic.</p>
<p>The US stocks gave up on their gains. The Dow (-0.91%) and the S&amp;P500 (-0.70%) closed the session in the negative, while Nasdaq (+0.51%) showed some resilience.</p>
<p>The US treasury will fuel the long-term financing by issuing a record $96 billion of debt next week. 20-year bonds will be issued for the first time since mid-1980s to boost the government financing. The US 10-year yield remains capped below the 0.70% mark and the US dollar is back above the 100 mark on the back of a swift move to safety.</p>