FOREX-Commodity gains restrain dollar ahead of inflation data Reuters 1 day ago Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Popular Searches Dollar bides time before U.S. CPI and Fed speakers Sterling continues stellar run as coronavirus risks fade
By Stanley White and Tom Westbrook
TOKYO/SINGAPORE, May 11 (Reuters) - The dollar hovered near multi-month lows on Tuesday with lofty commodity prices lending support to exporters currencies, though caution about U.S. inflation bringing forward rate rises kept the greenback from sliding.
The resource-sensitive Australian dollar sat by Monday s two-month high and was steady around $0.7831. The similarly exposed Canadian currency, which hit an almost four-year high on Monday, held at C$1.2096 per dollar. The New Zealand dollar traded near its highest since February.
May 10, 2021 15:11 GMTFXStreet News
Gold buyers defend $1,830 even as Friday’s run-up pauses for fresh push to the north.
US NFP, Unemployment Rate backed Biden, Yellen and Fed to shrug off rate hike pressure.
Equities, commodities cheered US dollar’s drop but lack of major reaction afterward confuse the bright metal bulls.
Update: Gold edge higher through the mid-European session and was last seen trading just above the $1,840 level, closer to three-month tops set on Friday. This marked the fourth consecutive day of a positive move and was sponsored by the bearish sentiment surrounding the US dollar, which tends to benefit the dollar-denominated commodity. Friday’s disappointing US monthly jobs report reaffirmed market expectations that the Fed will keep interest rates low for a longer period. This, in turn, was seen as a key factor that continued acting as a headwind for the greenback and provided an additional lift to the non-yielding yellow metal.
May 10, 2021 04:21 GMTFXStreet News
Gold buyers defend $1,830 even as Friday’s run-up pauses for fresh push to the north.
US NFP, Unemployment Rate backed Biden, Yellen and Fed to shrug off rate hike pressure.
Equities, commodities cheered US dollar’s drop but lack of major reaction afterward confuse the bright metal bulls.
Update: Gold (XAU/USD) is off the three-month highs, consolidating the US NFP disappointment-led rally in Monday’s Asian trading. An impressive bounce in the US Treasury yields combined with the upbeat market mood is capping the upside in the price of gold. The US yields are offering much-needed support to the greenback after the dollar got smashed on awful NFP figures released on Friday. The US economy added a mere 266K jobs in April vs. expectations of nearly a million. Despite the rebound in the dollar and the returns, the dovish Fed expectations are likely to keep gold’s bullish momentum intact. Immediate resistance for gold price is seen at the 20
5/10/2021 10:03:03 PM GMT | By Anil Panchal
US equities fail to extend Friday’s upbeat performance to Monday.
Need for more clues to defy reflation fears joined downbeat technology shares to back the bears.
Citi downgrades Facebook, Alphabet amid doubts over online advertising growth, challenging valuation multiples.
US FDA approves Pfizer-BioNTech vaccine for under 12-15 age group.
Wall Street benchmarks dropped, after an initially good start to the week, as optimism over the Fed’s easy money policies fizzled on Monday. While fears that slowing inflation may weigh on the technology shares that roared of late was the main catalyst, Citibank’s downgrade to Facebook and Alphabet also played their role to recall bears. Furthermore, cautious sentiment ahead of Wednesday’s key US inflation figures, to confirm no more tapering and rate-hike fears, also weigh on the market sentiment.
Markets Week Ahead: Gold, EUR/USD, S&P 500, FTSE 100, Inflation, Sentiment
2021-05-10 11:00:00
Rich Dvorak,
Analyst
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Global markets were relatively calm this past week. Equity investors drove stocks higher, sending major indices like the S&P 500 to fresh all-time highs. Perhaps this was motivated by a sharply weaker US Dollar and repricing of Fed taper risk that followed a big miss on NFPs. In turn, the disappointing data brings the ‘bad news is good news’ narrative back into focus for stocks.
Gold jumped 3.6% to its highest level in 12-weeks as real yields tumbled and helped catapult precious metals. Crude oil was able to eek out a modest 2% gain with concerns about demand from India overshadowed by optimism surrounding economies reopening elsewhere. EUR/USD price action exploded 147-pips higher on the week thanks to broad-based US Dollar selling pressure. GBP/USD spiked 170-pips as the Sterling strengthened in response to the Bank of England tapering its QE