2021-05-06 12:14:21
Vantage FX Market Outlook for 6th May 2021
#Risk sentiment is slightly risk on as the economy is recovering from the coronavirus with robust economic indicators. Asian stocks rose in early trade Thursday after technology shares weighed on U.S. markets, offsetting optimism over solid corporate earnings and economic reports. Bonds pared overnight gains. Benchmark 10-year Treasury yield edged higher in Asia’s morning. The U.S. government said it will sell $126 billion of long-dated bonds in next week’s refunding, unchanged from last quarter, which suggests its financing needs may have peaked. Oil gave up earlier gains as traders assessed an increase in gasoline stockpiles. Economy recovery triggers the question of whether the Fed will limit their support giving people a worrying sentiment.
#DXY US Dollar added 0.05% in early trade Thursday, hovering near two-week highs after Treasury Secretary Janet Yellen mentioned that the Fed may have to raise rates to prevent the US economy from overheating. Optimism about the reopening of the economy and strong earnings momentum lifted investor sentiment while economic indicators are mostly showing a bullish sentiment. Dollar might gain traction and continue to push for gains as it recovers from gloomy April triggered by mounting coronavirus cases worldwide.
#Gold Gold prices traded sideways on Thursday after easing from its 10 week high in the previous session. Meanwhile, the US trade deficit jumped to a record high in March amid booming domestic demand while a sharp increase in private spending and lowest jobless claims reinforced views that US economy’s recovery is picking up. Looking ahead, Gold prices could edge higher, buoyed by rising numbers of coronavirus cases and concerns of rising inflationary pressure. Elsewhere, the risk-on market sentiment could dampen the appeal of the safe-haven asset.
#CrudeOil #Oil Oil prices gained on Thursday as API date showed that US weekly crude stockpiles fell the most in 3 months. Additionally, restrictions easing in the US and Europe has further pushed optimism in outlook of demand with the rollout of Covid-19 vaccines. The EU commission is also looking at allowing travellers who are fully vaccinated to travel within the EU. OPEC+ started the month with gradual easing of oil production curbs after the drastic collapse of oil prices back in 2020. WTI Crude fell 6 cents to $65.63 a barrel, while Brent Crude added 8 cents at $68.96
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