Market Drivers – US Session – Thursday 19 May

Mohamed Abdelhamid 20 May, 2022 6:24 am Commodities, Forex Market, Market Update

The US dollar changed course on Thursday despite prevalent risk-aversion and fell across the board. Fears and concerns burnt around inflationary pressures and the probable slowdown of the global economic growth. Demand for safe havens continued, with government bonds appreciating and yields retreating.

Gold neared $1,950 a troy ounce, now trading at $1,842. Crude oil prices were also up, with WTI now changing hands at $108.95 a barrel.

Equity markets remained under pressure, with most Asian and European indexes closing in the red territory, although off their intraday lows. Wall Street remained under pressure, although losses were limited.

Economic Data
There were 218,000 Initial Jobless Claims in the week ending on 14 May, a tad above the expected rise to 200,000 from 197,000 one week ago, data released by the US Department of Labour on Thursday showed. That meant the four-week average number of claims rose to 199,500 from 191,250 a week earlier.

Other Development
The UK and the EU embarked on new Brexit tensions. As the first try to modify rules agreed in the Northern Ireland Protocol, the EU ambassador to the UK said the treaty is not open for new negotiations.

Turkey’s Erdogan said he would oppose Finland and Sweden joining NATO, while US President Joe Biden stood at the other end of the line, saying his country would fully support it.

The EUR/USD pair trades around 1.0590 after briefly surpassing the 1.0600 threshold. The GBP/USD holds a handful of pips below the 1.2500 threshold.

The Australian dollar was among the best performers despite tepid Australian employment data. AUD/USD holds around 0.7060, its highest for the week. The USD/CAD pair ticked lower and trades around 1.2810. Meanwhile, the Swiss Franc soared, with USD/CHF now trading at 0.9716, while USD/JPY is down to 127.70.

Also Read
Investors Pay Close Attention To WTI-Brent Spread