2021-05-05 07:53:08
Vantage FX Market Outlook for 5th May 2021
#Risk sentiment on early Wednesday is slightly more risk on. U.S. equity futures and Asian stocks were steady Wednesday after a selloff in technology shares amid comments from Treasury Secretary Janet Yellen on interest rates that rattled markets. The dollar held gains. Yellen says rates will likely rise as government spending ramps up and the economy responds with faster growth. Commodities rallied to the highest in almost a decade as a rebound from the pandemic in the world’s largest economies stokes demand for metals, food and energy.
#DXY Nasdaq falls 2% as tech stocks sell off, with much of the good news on the corporate earnings and economic front already priced into the market. Worries about inflation and higher taxes once again kept sentiment subdued. Stocks of crude oil in the United States fell by 7.7 million barrels in the week. USD 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 Wednesday after easing from its 10 week high in the previous session. Meanwhile, US 10-year bond yields were at 1.594% as the US trade deficit jumped to a record high in March driven by booming domestic demand, which is drawing in imports, reinforcing the view that the US economic activity is rebounding faster than its G10 peers. Looking ahead, Gold prices could see limited upside, keeping in mind the prospects of an economic recovery while rising number of coronavirus cases and concerns of rising inflationary pressure buoy demand for the safe-haven asset as it is also seen as a hedge against inflation.
#CrudeOil #Oil Oil prices extended its rally further and opened higher at the start of the Asian trading session as API data showed that US weekly crude stockpiles fell. Additionally, positive news that the US is looking at about 70% of its adult population getting at least a covid-vaccine shot by July could also very well improve oil consumption across the country. The UK Prime minister Boris Johnson also says that his country’s lockdown rules could also be completely scrapped in 7 weeks. At the start of the Asian trading session, WTI rose by 0.9%, similarly, Brent climbed by 0.9% as well.
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