Markets in calm mode on Monday

10/05/2021

It looks like today's trading might not be that volatile as the London session is seeing only small movements across the major asset classes.

Friday's disappointing US labor market data led to a strong rally in US equities. The NFP number fell notably and hugely missed expectations, with the unemployment rate also worsening. 

Thus, the pressure on the Fed eased as traders were afraid the central bank might start tapering its QE program this year. That most likely won't happen, with the Fed reiterating many times that rates won't move higher for a considerable time. 

Over the weekend, the European Central Bank’s chief economist stated that the road to recovery from the coronavirus would be long for the Eurozone. Philip Lane thinks the unemployment rate in the eurozone would not fall to its 2019 levels before 2023. 

From other news, oil prices moved higher, while gasoline rose to a three-year high after a cyber attack on a US pipeline operator resulted in a major disruption to US supplies. The WTI benchmark jumped back above the 65 USD level. 

The USD took a massive hit on Friday, which sent the EURUSD pair to 1.2150. The USDJPY pair declined below 109, but interestingly, US yields reversed their decline and closed higher on Friday, creating a nice bullish pin bar, possibly leading to higher yields this week.
Cookie Policy: The Axiory website uses cookies and by continuing using the website you consent to this. Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Privacy Policy.