This is what you need to know to trade today Tuesday, May 18:
The market mood has turned positive after the US markets rallied on Monday night. Optimism about the global recovery and continued support from the Fed outweigh concerns about the virus and inflation. Cryptocurrencies are on the mend after suffering Musk’s blows.
The Federal Reserve officials sThey have stuck to their message that the recent rise in inflation is transitory and they see no need to change their policy. That’s one of the factors that propelled stocks late on Monday and weighed on the dollar.
The EUR/USD It is climbing towards 1.22, the highest level since February before the release of Eurozone Gross Domestic Product (GDP) figures for the first quarter to be released later in the day. European countries continue to ease restrictions as immunization efforts bear fruit.
The GBP/USD it is climbing towards 1.42, also driven by upbeat sentiment and after the UK reported strong employment data. The unemployment rate dropped to 4.8% in March and jobless claims dropped a surprising 15,100 in April.
The oro it has been hovering around $ 1,870, extending its recovery. The precious metal is weathering relatively high Treasury yields. The 10-year bond yield is hovering around 1.64% as of Tuesday morning.
Virus: Pfizer / BioNTech and Moderna vaccines provide sufficient protection against the strain first discovered in India, providing some relief for the UK and other countries. On the other hand, infections continue to rise in Asia, including previously sparsely damaged places like Singapore and Taiwan. The United States announced that it would donate an additional 20 million doses of vaccines.
Infrastructure in the USA: Republicans will send a counterproposal for infrastructure spending to the White House on Tuesday while negotiations continue. The offer is likely to be substantially less than the $ 4 trillion total that President Joe Biden wants.
Japan reported a 1.3% drop in GDP during the first quarter of 2021, slightly below the -1.1% projected. It was added to a downward revision of the fourth quarter. The nation continues to fight an increase in covid cases, but the USD / JPY remains stable around 109.
Bitcoin it rallied above $ 45,000 after nearly falling below $ 42,000 on Monday. Tesla founder Elon Musk criticized the granddaddy of cryptocurrencies and hinted that his company would sell them. Other digital currencies are also recovering on Tuesday.
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