Forex news from the European trading session - 11 May 2021
Headlines:
- Is it make or break time for tech stocks?
- US April NFIB small business optimism index 99.8 vs 100.8 expected
- Australia forecasts budget deficit of A$106.6 billion in 2021-22
- Germany May ZEW survey current situation -40.1 vs -41.6 expected
- Elon Musk polls Twitter: Do you want Tesla to accept Doge?
- ECB's Villeroy: Will continue with PEPP at least until March 2022
- Germany April wholesale price index +1.1% vs +1.7% m/m prior
- Germany reports 6,125 new coronavirus cases, 283 deaths in latest update today
Markets:
- EUR leads, CHF lags on the day
- European equities lower, S&P 500 futures down 0.8%
- US 10-year yields up 0.7 bps to 1.609%
- Gold up 0.2% to $1,840.17
- WTI down 1.4% to $64.05
- Bitcoin down 0.3% to $55,180
It was a quiet session in some quarters of the market but equities were sold rather heavily as European indices look set for one of the worst days so far this year.
Most European indices are down by 2%, building on the drop in US equities yesterday as US futures today are also pointing to further losses after record highs on Friday.
The bond market and FX kept calmer with the dollar seen mildly weaker across the board as we look towards North American trading.
EUR/USD is keeping modestly higher, up from 1.2130-40 to 1.2170 while GBP/USD is maintaining its solid break higher yesterday to be up from 1.4120 to 1.4150.
USD/CAD keeps little changed around 1.2100 while AUD/USD is up a little from 0.7830 to 0.7850 with NZD/USD keeping a touch higher at 0.7280-90.
All eyes will be on the risk mood today as equities look set to bleed further and it is certainly shaping up to be make or break time for tech stocks in particular.
