EUR / USD pushing back towards 1.21 handle
US stocks rebounded last night, rallying hard at the close, to cap what was a high volume trading day for the market. The US 500 rebounded 0.82%, in a widespread rally that saw each sector finish higher, and 77% of stocks close in positive territory.
Arguably there hasn’t been a clear thematic action in cross-market markets – it could best be described as a wholesale return to equities, at the end of a soft week for equities, and before the non-farm payrolls in the United States tonight.
Strong US data has certainly helped the market move up – although it must be said, it hasn’t seemed to change the dynamics of bond markets, which, likely to the benefit of equities, has seen yields stabilize, or even drop slightly overnight. Unemployment claims figures for the United States were released for the week and revealed that new claims for unemployment benefits in the country fell below 500,000 for the first time since the start of the pandemic.
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The movement of risk manifested itself in the foreign exchange markets last night
The US dollar has lost ground in its recent mini-rally, with EUR / USD pushing back towards the 1.21 grip and commodity currencies climbing widely as AUD / USD hits the top of its recent range, not too far from 78 cents.
The strength in commodity currencies came, naturally, as commodity prices continued to climb. ETFS Brent Crude prices fell for another session. However, copper still seems to provide a solid prognosis for the global economy and, of local concern, iron ore rose another 5.2% to new highs, arguably revealing what market participants think about the risk. for mineral exports from Australia. sour Sino-Australian relations.
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Gold prices also jumped, after several weeks of consolidation
Spot gold climbed around 1.5%, to close US trade at around US $ 1,815 an ounce, likely due to the combined influence of a weaker US dollar, as well as a key technical break above price resistance.
The move also closes some lost ground gold prices, as real yields continue to decline as implied measures of future inflation rise.
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