Thank you for visiting our website.
Until further notice, Tradeo is no longer accepting new clients.

Regards
Tradeo

market review 13 May 21

13 May 21

Dollar Edges Higher; Fed in Spotlight on Inflation Surge

The dollar edged higher in early European trade Thursday, with the safe haven currency supported by concerns of an earlier than expected Federal Reserve response to inflationary pressures in the wake of worryingly large jump in U.S. consumer prices.
At 2 AM ET (0700 GMT), the U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, was up 0.1% at 90.775, around its highest level in a week.
EUR/USD traded 0.1% higher at 1.2075, after dropping around 0.6% the previous session, GBP/USD was flat at 1.4052, and USD/JPY was up 0.1% at 109.73, close to its strongest level in five weeks. AUD/USD fell 0.2% to 0.7712, while NZD/USD rose 0.1% to 0.7160, benefiting from further plans to open the New Zealand economy.
The main driver of these dollar gains has been the surge in U.S. inflation, and the concern this will force the Fed to move away from its ultra-easy monetary policies sooner than its current guidance suggests.

https://www.investing.com/news/forex-news/dollar-edges-higher-fed-in-spotlight-on-inflation-surge-2504879

https://www.investing.com/currencies/usd-jpy-chart





Gold Price Forecast: XAU Eyes US Retail Sales After CPI Boosts Fed Rate Bets

Financial markets received the first taste of a post-pandemic surprise surge in US inflation from Wednesday’s Consumer Price Index (CPI), and the impact saw a cascade of selling from equities to government bonds to precious metals. Gold was no exception, helped lower by a spirited climb from the US Dollar. The benchmark DXY index recorded the largest one-day rise in two weeks.
Treasury yields climbed in tandem with the Greenback, putting further overhead pressure on the yellow metal. Rates traders reacted with a more hawkish view on the Federal Reserve’s future policy stance following the strong inflation print. The supposition is that the Fed will be forced to tighten sooner than expected. That hypothesis may prove true, but only time will tell.
The case for an earlier tightening of monetary policy is only growing stronger despite unremitting Fed talk to the contrary. Fed Chair Jerome Powell, along with several other FOMC voters, have taken a strong stance arguing that any outsized rise in prices will be transitory. The central bank could, of course, be right. Still, is the Federal Reserve too entrenched in that view to react promptly?

https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2021/05/13/Gold-Price-Forecast-XAU-Eyes-US-Retail-Sales-After-CPI-Boosts-Fed-Rate-Bets.html

https://www.investing.com/currencies/xau-usd-chart

Asia shares alarmed by U.S. inflation scare, count on calm Fed

Asian shares slipped to seven-week lows on Thursday after a shocking rise in U.S. inflation bludgeoned Wall Street and sent bond yields surging on worries the Federal Reserve might have to move early on tightening.
“Higher inflation is a definite negative for equities, given the likely rates response,” said Deutsche Bank (DE:DBKGn) macro strategist Alan Ruskin.
“The more nominal GDP gains are dominated by higher inflation, especially wage inflation, the more the possible squeeze on profit margins. It plays to a more choppy, less bullish equity bias.”
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.9%, though trade was thinned by holidays in a number of countries.
Nasdaq futures were trying to rally with a gain of 0.4%, while S&P 500 futures added 0.3%. But EUROSTOXX 50 futures were still catching up with overnight falls and lost 0.7%, while FTSE futures shed 0.5%.
Wall Street was blindsided when data showed U.S. consumer prices jumped by the most in nearly 12 years in April as booming demand amid a reopening economy met supply constraints at home and abroad.
The jump was largely due to outsized increases in airfares, used cars and lodging costs, which were all driven by the pandemic and likely transitory.

https://www.investing.com/news/stock-market-news/asian-shares-spooked-by-us-inflation-alarm-yield-jump-2504780

https://www.investing.com/indices/us-spx-500-futures-streaming-chart

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.
It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services