What you need to know on Friday, May 12th:
Fear turned into panic during US trading hours, leading to one of the worst days in Wall Street for this year. The conservative view from the US Federal Reserve about an economic recovery led the way. The dollar edged higher against most major rivals, except those considered safe havens.
US President Trump was unable to come to the rescue, although he tried. Mid-US afternoon, he tweeted: “ The Federal Reserve is wrong so often. I see the numbers also and do MUCH better than they do. We will have a very good Third Quarter, a great Fourth Quarter, and one of our best ever years in 2021. We will also soon have a Vaccine & Therapeutics/Cure. That’s my opinion. WATCH!”
US weekly unemployment claims hit 1.54 million in the week ended June 5, slightly better than anticipated. Continuing Jobless Claims, however, edged higher to roughly 21 million in the week ended May 29.
The Pound was among the worst performers ahead of critical UK growth-related data. Brexit woes added pressure, as UK Cabinet Minister Michael Gove hit the wires this Thursday, repeating that they won’t ask for an extension, despite the lack of progress in talks with the EU. GBP/USD settled around 1.2580.
The EUR/USD pair lost the 1.1300 figure ahead of the close, finally giving up to risk-aversion. Commodity-linked currencies, however, were the most affected by Wall Street’s slump.
Crude oil prices plummeted over 6% amid decreasing hopes for an economic recovery.
Gold prices reached fresh weekly highs, with spot hitting $1,744.70 a troy ounce. The metal, however, lost momentum as the day went by, ending it in the red around 1,730.
Cryptocurrency Market News: Bitcoin drops to $9,100, the rest of the market follows suit
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