Market Update - 11 May
USD regains some of its losses in past days and trying to trade stable, while the market lost the weight in inflation fears. Ahead of tomorrow's inflation number and today's officials' speeches, the dollar follows the U.S. Treasury bond Yields uptrend. Earlier today, the ten-year Bond Yields recovered above 1.60% from Friday's low of 1.46% after disappointing employment numbers.
Today and tomorrow, the two biggest global economies report the critical C.P.I. numbers, and one of them already have been published. China earlier today published its Consumer and Producer Price Index. For C.P.I., even though it is raised less than 1% expectation and up just 0.9%, it is primarily because of lower pork price than its record high in 2020. On the other hand, PPI was higher than estimates, and it was even the highest since October 2017.
Since yesterday, stock markets started to react to the concerns of rising inflation. Last night in Wall Street, Dow Jones and S&P 500 lost 1%, while NASDAQ closed 2.55% lower. And they kept the downtrend in today's Future market as well. The same reaction has been repeated in earlier closed Asian Stock markets. Nikkei lost 3%, Hang Seng 2%, but Shanghai closed 0.4% higher.
In Europe, the same negative Sentiment sent the FTSE100 more than 2.2% lower, German DAX down 2.1%, and French CAC40 is almost 2% lower so far.
While these fears are calming the tensions of NFP numbers, the USD index trading more stable today and above the 90.00-mark.
GBPUSD - lowered from 10-weeks high, currently trading flat in intraday charts. But have some signals of decreasing numbers since it is creating LH one after another raise.
EURUSD - Pairing bouncing back above 1.2150 and both M.A. lines in intraday trading charts, as German and E.Z. Economic Sentiment shows an increase in business confidence in both economies as European progressing in their vaccination campaign.
Later today, after E.I.A. Short-Term Energy Outlook and OPEC Monthly Report, eys will be on F.E.D. Speakers, including John Williams, Lael Brainard, Mary Daly, and Raphael Bostic, will spotlight. They will probably repeat the FED message that inflation is temporary and have enough tools to control it.
