2021-05-11 10:52:17
Vantage FX Market Outlook for 11th May 2021
#Risk sentiment is roughly more risk off. Asian stocks and U.S. equity futures slid Tuesday after a technology-led tumble on Wall Street as surging commodity prices stoked concern about inflation. Dollar pared a decline. A gauge of Asian equities fell the most since March, with technology stocks underperforming. Oil retreated as traders monitored the worsening fallout from the closure of the largest U.S. oil-products pipeline. Spotlight remains on commodities generally and the market implications of recent jumps in materials like copper and iron ore. 10-year Treasury yield slipped back after earlier rising to 1.60%. A more risk off sentiment is prevalent as nonfarm payroll reveals bad results
#DXY USD traded at 10-week lows of 90.29 in early trade Tuesday. Unemployment rate rose to 6.1% amid an escalating shortage of available workers. US inflation expectations surged to 3.4% in April, the highest in a decade amid mounting concerns over rising price pressures as the economy further re-opens. Dollar is undergoing fluctuation, slightly more bullish as investors and market participants weighed weak nonfarm payroll data last week against rising local inflation expectations.
#Gold Gold prices could edge higher, buoyed by rising number of coronavirus cases and concerns of rising inflationary pressure as the precious metal is often seen as a hedge against inflation. Elsewhere, a disappointing payroll report casted doubts over the US economic recovery and cemented expectations that the US central bank will remain ultra-accommodative.
#CrudeOil #Oil Oil prices dipped slightly but rose towards the end of the trading session as reports that a cyberattack forced one of the US major oil pipelines to shut down. The sudden attack momentarily overshadowed the worsening virus situation in Asia. Should the pipeline continue to be down, there would be far-reaching ramifications in the oil market. WTI opened lower by 0.3%, similarly, BRENT dipped by 0.3% at the start of the Asian trading session.
252 views07:52
V
