market review 12 May 21

12 May 21

Dollar Edges Higher; Inflation Data Looms Large

The dollar edged higher in early European trade Wednesday, but remains near recent lows ahead of a key U.S. inflation release.
At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was up 0.2% at 90.287, just above Tuesday’s low of 90.130, seen for the first time since Feb. 26.
EUR/USD traded 0.2% lower at 1.2127, USD/JPY rose 0.2% to 108.83, while AUD/USD fell 0.5% to 0.7804 and NZD/USD dropped 0.6% to 0.7234, with the commodity currencies cooling off after recording recent ten-week tops.
Investors now await the latest U.S. consumer inflation data, due at 8:30 AM ET (1230 GMT), which is expected to show a 3.6% lift in year-on-year prices, boosted by last April’s low base. This would be the largest jump since September 2011.

https://www.investing.com/news/forex-news/dollar-edges-higher-inflation-data-looms-large-2503513

https://www.investing.com/currencies/eur-usd-chart





Pound Jumps to 10-Week High as ‘Scoxit’ Worries Fade

The pound held the bulk of its gains Tuesday after jumping to a 10-week high against dollar, riding a wave of post-election optimism amid fading worries over a Scottish referendum on whether to leave the U.K.
GBP/USD rose 0.19%, to $1.4146.
“[T]here won’t be a (legal) referendum on Scottish independence anytime soon,” Action Economics said, after the Scottish National Party fell short of gaining an overall majority following the national election last week.
“It should be noted that polling suggests that most people in Scotland don’t want a new referendum on independence and that only 36% think the SNP has a mandate for a referendum versus 46% who don’t,” it added.
But results of the election were not only a positive for those opposed to another Scottish referendum, as U.K. Prime Minister Boris Johnson’s Conservative party firmed up their support in the local elections.

https://www.investing.com/news/forex-news/pound-jumps-to-10week-high-as-scoxit-worries-fade-2503043

https://www.investing.com/currencies/gbp-usd-chart

Dow logs steepest daily skid in 2 1/2 months but tech-led Nasdaq stages big comeback to pare worst of Tuesday’s slump

U.S. stocks finished out a wild Tuesday session lower but investors bought into the drop, helping to pare the worst of the day’s steep drop. Still, the Dow Jones Industrial Average DJIA, -1.36% booked its worst day since Feb. 26, ending down 472 points, or 1.4%, at 34,269. At its lows, the blue-chip index was down by as many as 668 points before paring those losses. The S&P 500 index SPX, -0.87% closed 0.9% lower to 4,152, while the Nasdaq Composite Index COMP, -0.09% ended down less than 0.1% at 13,389, recovering from an intraday nadir at 13,107.67. Initial selling was primarily focused on technology and tech-related names, with the downturn blamed on renewed fears of a surge in inflation as the economy recovers from the COVID pandemic. Tech shares, however, saw some bids off their lows on Tuesday as investors saw buying opportunities off the day’s low.

https://www.marketwatch.com/story/dow-logs-steepest-daily-skid-in-2-12-months-but-tech-led-nasdaq-stages-big-comeback-to-pare-worst-of-tuesdays-slump-2021-05-11

https://www.investing.com/indices/us-30-chart

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