What you need to know on Tuesday, May 25:
The week started in slow motion, but the dollar remained the weakest currency in the forex market. It started the day progressing modestly, but demand waned as the day wore on, as US government bond yields The 10-year US Treasury yield bottomed out at 1.59% and settled. by 1.60%.
Federal Reserve officials were on the wires and Governor Lael Brainard’s comments stand out. Among other things, he noted that the US economy is in the midst of an unprecedented economic rebound and that some bottlenecks in the supply chain contribute to inflation. He added that the Fed has the tools to deal with inflation if it persistently moves above target. In a separate event, St. Louis Fed Chairman James Bullard noted that he expects to see more inflation, but added that it would mostly be temporary.
A tight macroeconomic calendar was exacerbated by a holiday in several European countries and Canada. The EUR / USD pair recovered the 1.2200 level but remained below the monthly high at 1.2245.
GBP / USD rebounded modestly from daily lows despite encouraging news from the UK. The UK reported that the number of shoppers across the kingdom rose 1.1% in the week ending May 22 amid the reopening of indoor hospitality. Additionally, local health officials said on Sunday that the restrictions could be lifted at the end of June as an official study found that the Pfizer and AstraZeneca vaccines offer effective protection against the Indian strain currently circulating in the kingdom. The pair settled around 1.4150.
The loonie remained among the strongest after BOC Governor Tiff Macklem said the drawdown is the right move for the Canadian economy, adding that the economy still needs a “considerable amount of monetary support” and that He feels comfortable withdrawing the extraordinary stimulus extended during the pandemic due to the resilience of the national economy.
Commodities rose modestly, helped by the good mood on Wall Street. Gold closed at $ 1,882 a troy ounce, while WTI is trading near $ 66.00 a barrel.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
