Victor Camargo
05/10/2021
This Monday, the euro was well consolidated in the region of 1.217, supported by thegrowing optimism about the economic recovery as some countriescontinue their efforts to reopen and the rate of vaccination has accelerated in theEuropean Union. On average, in the last week, almost three million doses of vaccinesagainst Covid-19 were being administered every day in the block, with the rate adjustedfor the population being roughly equivalent to the number of injectionsadministered each day in the USA.
Extending its sharpest drop in five months, the DXY index was tradingbelow 90.2, approaching its lowest point since February 2018, with thedollar under pressure due to the weak job report released on Fridayfair, retreat in treasury yields and a more optimistic feeling in relation to othersavings, with the euro and the pound reaching 2-month highs.
On the upside, gold was trading near three-month highs, aroundUSD 1840 an ounce, while investors move away from the dollar. In addition to the newsthe metal benefited as a safe-haven due to the acceleration of interest ratescoronavirus infection in India and Japan, which guaranteed gold last weekits biggest weekly gain since November, rising 3.5%.
Dow Jones extended its earnings to start the week by renewing a record high,driven by mining and energy stocks, as commodity pricescontinue to rise and investors are betting that the Fed will not decrease or increaserates soon and that the White House is expected to propose additional stimuli. About that,technology stocks pulled the S&P 500 and Nasdaq into negative territory, asthat investors fear that rising commodity prices and the problemssupply chain could lead to higher inflation and erode the value offuture profits. President Biden will comment on the economy on Monday andwill meet with Republican and Democratic leaders on Wednesday to discussvarious topics.
In Europe, the indices were little changed, with the DAX closing practically atyour level of openness. The market continues to benefit from the bullish momentum seen in thelast week, supported by a better economic outlook due to the accelerationpace of vaccinations and unprecedented support for monetary policy. Whilethis, ECB chief economist Philip Lane told a French newspaper that the bankcentral bank could still increase bond purchases at its June meeting if suchmovement is necessary to maintain favorable lending conditions.
Source: http://wintrademarkets.com
