market review 18 May 21

18 May 21

UK unemployment falls again as firms readied for lockdown easing

Britain’s unemployment rate unexpectedly fell again to 4.8% between January and March, a period which the country spent under a tight COVID lockdown, and hiring rose further in April, data showed on Tuesday.
Economists polled by Reuters had mostly expected the unemployment rate to hold at 4.9%.
The data added to signs that Britain’s labour market has not suffered the severe hit feared at the onset of the coronavirus pandemic, in large part due to the government’s huge jobs subsidy programme.
The number of people in employment jumped by 84,000 in the first quarter of 2021, the first increase since the coronavirus crisis began and a stronger increase than the median forecast of a 50,000 rise in the poll. Those classed as unemployed fell by 121,000.
However, the inactivity rate – measuring people who are not looking for work – rose and was a record high for men.

https://www.investing.com/news/economic-indicators/uk-unemployment-rate-unexpectedly-rate-fell-in-q1-ons-2509091

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





Dollar Weakens as Fed Officials Point to Lower for Longer

The dollar weakened in early European trade Tuesday as comments from Federal Reserve officials pointed to the central bank holding onto its ultra-easy monetary policies for some time yet.
At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was down 0.2% at 89.955, falling to its lowest level since late February.
EUR/USD traded 0.3% higher at 1.2183, climbing to its highest level since Feb. 26, USD/JPY was 0.1% lower at 109.08, after data showed Japan’s economy contracted more than expected due to coronavirus infection, while the risk-sensitive AUD/USD rose 0.5% to 0.7802.
The dollar had pushed higher last week after consumer prices jumped sharply, suggesting the Federal Reserve would feel the pressure to rein in its accommodative policies sooner than it had guided.

https://www.investing.com/news/forex-news/dollar-weakens-as-fed-officials-point-to-lower-for-longer-2509101

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

Oil prices rise as U.S., Europe reopen economies

Oil prices extended gains on Tuesday as hopes of a solid recovery in fuel demand following the reopenings of the U.S. and European economies offset concerns over spreading COVID-19 cases in Asia.
Brent crude oil futures were up 33 cents, or 0.5%, at $69.79 a barrel by 0644 GMT, while West Texas Intermediate (WTI) was up 30 cents, or 0.5%, at $66.57 a barrel.
Both contracts rose more than 1% on Monday.
“Behind the gain is growing optimism of strong recovery in gasoline and other fuels in the United States and Europe in light of easing of various pandemic-related restrictions,” said
Chiyoki Chen, chief analyst at Sunward Trading.
“There are concerns about spreading infection cases in Asia, but it will be solved in a matter of time as the vaccine spreads,” he added, predicting that Brent prices will be headed toward $75 a barrel later this month.
U.S. President Joe Biden will send at least 20 million more COVID-19 vaccine doses abroad by the end of June, marking the first time the United States is sharing vaccines authorized for domestic use.

https://www.investing.com/news/commodities-news/oil-extends-gains-on-optimism-over-us-european-reopenings-2509024

https://www.investing.com/commodities/crude-oil-streaming-chart

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.
It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services