XE Market Analysis: Europe - May 06, 2021
Narrow ranges have been prevailing into tomorrow s April nonfarm payrolls report out of the U.S., alongside a number of other data releases and monetary policy decisions from the Norges Bank and BoE. There are also local elections in the UK which have the potential to embolden the Scottish independent movement. The pandemic remains a concern in many places around the world, particularly in India, which reported a new record high in new cases today. The governors of both Tokyo and Osaka requested an extension of the state of emergency due to fresh outbreaks there, while New Zealand stopped receiving flights from Perth in Australia, and is considering doing the same with Sydney. But there remains solid grounds for longer-term optimism. We known that the vaccines being used in the places such as the U.S., UK and Israel have been highly effective, and still have show efficacy, if somewhat reduced, against new variants, including the Indian one.
XE Market Analysis: North America - May 05, 2021
The dollar lost upside momentum, while cyclical, commodity-correlating currencies outperformed as many base metal prices scaled to fresh major-trend highs. Copper hit new 10-year highs, for instance, on reports of there being only enough warehoused copped to cover just over three weeks worth of demand. Oil prices rose for a third consecutive day, with front-month WTI futures gaining over 1% in pegging a two-month high at $66.64. Weekly data from API showed a draw on U.S. crude stockpiles. USD-CAD tumbled back under 1.2300 turning lower from yesterday s one-week high at 1.2350. Other oil correlating currencies, such as the Norwegian krone also rallied. The Aussie and kiwi dollars also rallied. European stock markets lifted and U.S. equity index futures rebounded after Wall Street s thumping yesterday. Concerns about the impact rising input costs on corporate earnings, alongside risk of monetary policy tightening, are being countervaile
XE Market Analysis: Europe - May 05, 2021
The dollar lost some upside momentum but has remained firm. The DXY dollar index edged out a two-week high at 91.43 while EUR-USD ebbed below 1.1990 for the first time since April 19th. This comes after U.S. Treasury Secretary Yellen, formerly the chair of the Fed, caught attention by stepping on Powell s toes yesterday, saying that the Fed might have to lift rates to contain an overheating economy. She subsequently tried to walk back these remarks, though the damage was done in the sense of having catalysed the sell-off on Wall Street yesterday. The risk-off tone was responsible for driving the U.S. 10-year Treasury yield back under 1.60% for the first time since last week. The dollar broke step with yields, however. To ourselves, and others, a real 10-year yield of -1.0% looks incongruous with the prevailing course of the economy, which is something that the currency markets appears to be now recognizing. Elsewhere, USD-JPY lifted towards
The dollar has lifted out of lows seen yesterday, which were a product of a drop in long-dated U.S. yields following sub-forecast April ISM and March construction data. The narrow trade-weighted.
The dollar has lifted out of lows seen yesterday, which were a product of a drop in long-dated U.S. yields following sub-forecast April ISM and March construction data. The narrow trade-weighted.