Market News Today – Consolidation generally ruled the day in bonds and stocks after some big swings in recent sessions. The focus remains on the robust recovery, the rise in inflation, virus spikes and widening distribution of vaccines, and the varying dimensions of all left the markets in limbo.
Traders kept a close eye on volatile cryptocurrencies as China reiterated its commitment to curb mining and trading. China’s intensifying efforts to cool raw material prices were also in the mix, as were ongoing inflation concerns, which in turn fuel lingering taper talk.
Treasuries traded narrowly around unchanged levels with the 10-year yield either side of 1.625%. Wall Street continued to meander in back-and-forth action as investors mulled growth versus value positions. GER30 and UK100 futures are up 0.2% and 0.3% respectively, US futures are also fractionally higher, after a pretty steady session in Asia.
In FX markets the Yen strengthened and USDJPY dropped back to 108.70, while the dollar was pretty steady against most other currencies. The EUR and GBP both steadied at 1.2190 and 1.4150. The AUD traded near the lower end of its 5-week range as the country’s central bank is seen lagging global peers in tightening monetary policy despite a strong economic recovery. Currently at 0.7735. The USOIL meanwhile is trading at USD 64.05 per barrel.
Today – Whit Monday/Pentecost holidays in parts of the continent will likely weigh on activity. The only key events of the day are Gov. Kuroda and Gov. Bailey speech.
Biggest FX Mover @ (07:30 GMT) USDJPY (-0.51%) declined from 109.00 to 108.70 Faster MAs remain aligned lower, RSI 38 pointing lower, MACD histogram turn negative but signal line holds positive, suggesting that there is still some negative bias in the near term. H1 ATR 0.0665, Daily ATR 0.5566.
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Andria Pichidi
Market Analyst
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