Victor Camargo
05/21/2021
This Friday, the DXY index rebounded and was trading around 90after starting the falling session. The treasury yields also recovered afterthat Markit PMI data showed record growth in both the services sectorand manufacturing in the month of May. On the week, however, the dollar is expected to registera drop of 0.4%. On Wednesday, the FOMC minutes showed that somepolicymakers are already comfortable discussing a plan should the US economycontinue with its strong recovery and inflationary pressure continues. Anyway,Fed officials agree that the economic recovery is still far fromcomplete
After starting the bullish session, gold fell close to its opening point andwas trading around USD 1875 an ounce. Even so, the metal mustrecord a 1.7% weekly gain to close its third consecutive week ofdischarge, remaining close to the maximum of 4 months, supported by the concern with theinflation
The main Wall Street indices returned much of their earnings after theenthusiasm over the PMI data has waned. In addition, the fall in Bitcoin has causedthat stocks related to Crypto currencies plummet
In Europe, the main indices closed higher, after PMI data showedthat business activity in the Eurozone has grown at a markedly higher ratein May, easily exceeding market expectations, aseconomies continue to open after the restriction measures imposed on behalf of thecoronavirus. Markit data also showed that private sector economiesthe United States and the United Kingdom expanded at record rates, while record increasesinput and product costs raised concerns about inflation.Meanwhile, ECB President Christine Lagarde said that it is too early for theEuropean Central Bank discuss the closure of its Pandemic Emergency PurchaseProgram of EUR 1.85 trillion. The DAX 30 gained 0.1% in the week to close on15,438
The IHS Markit US Manufacturing PMI jumped to a new record of 61.5 in May2021, exceeding expectations of 60.2 amid stronger demand fromcustomers. New orders also expanded at a record pace while theproduction growth accelerated, despite the sharp deterioration in the performance of thesupplier due to limited operational activity. In addition, backlogs areaccumulated at the highest rate ever recorded, as companies were restricted by theshortage of raw materials. Meanwhile, companies have sought to expand the numbernumber of employees, but the rate of job creation has decreased to a minimum in fivemonths. At the same time, input costs increased at an unseen pacesince July 2008 due to increased logistics, raw material and fuel costs andproduction charges, which increased at a record pace. Although strong, confidenceof entrepreneurs fell to the lowest level in seven months
Source: https://wintrademarkets.com
