This is what you need to know to trade today Wednesday 12 May:
Markets are in “risk aversion” mode, as concerns about the Israeli / Palestinian escalation, fuel supplies in the northeastern United States, and rising rates amid rising inflation have come ahead of US CPI data. The focus is also on the speeches of central bankers and the new EU economic forecasts. Cryptocurrencies are mixed.
Middle East: The conflict between Israel and Hamas in Gaza has escalated with waves of attacks. Concerns about further deterioration and warnings from the UN about a “full-scale war” that began over a local problem in Jerusalem are bearing down on oil prices and contributing to risk aversion sentiment.
Some service stations in the northeastern US are drying up as Colonial Pipeline deliveries remain stagnant after a ransomware attack. The authorities have promised to restore service in the coming days. The problem is increasing the gloomy feeling.
Fears of an overheating of the US economy and rate hikes from the Federal Reserve remain frequent despite pessimistic comments from Federal Reserve officials, who say inflation is transitory. Fed Vice Chairman Richard Clarida and his colleague Raphael Bostic are ready to speak later in the day.
The data from the US CPI consumer price index. for April show an increase in all measures, only partially as a result of the base effect. The CPI fell around this time last year due to the virus.
See: April US CPI Consumer Price Index Preview: The Two Base Effects on Inflation
The EUR/USD it is pressed below 1.2150 amid the strong dollar and ahead of new EU economic forecasts. The GBP/USD It is trading above 1.41 but below highs after UK gross domestic product GDP statistics beat estimates with a contraction of just 1.5% in the first quarter. Bank of England Governor Andrew Bailey will speak later in the day.
Technological actions They are having more difficulty than others, while gold is also dragged, trading around $ 1,830. US 10-year yields hover above 1.61% as inflation concerns mount.
Coronavirus: Experts estimate that the current wave of COVID-19 in India is reaching its peak, but daily cases are still more than 300,000. Infections continue to decline in Western countries, and scientists await the results of trials from CureVac, a German company that developed an mRNA vaccine.
Cryptocurrencies: Bitcoin is trading around $ 57,000 while Ethereum has resumed its gains and surpasses the $ 4,000 level. Dogecoin is below $ 0.50 after receiving a boost from Elon Musk on Tuesday.
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