Sentiment Is Still Shaky, What Will The New York Session Look Like? - Kakiforex | Forex markets for the smart money. Sentiment Is Still Shaky, What Will The New York Session Look Like? Sentiment Is Still Shaky, What Will The New York Session Look Like?

May 22, 2021

Sentiment Is Still Shaky, What Will The New York Session Look Like?

 Uncertainty was seen still plaguing the market during the start of European session trading, which showed the movement of the currency was still volatile.


The US dollar eased slightly after rising in Wednesday's trading session supported by a report of the minutes of the FOMC meeting, in which some policymakers were said to be ready to discuss a reduction in bond purchases (tapering).


However, the increase recorded was insignificant as policymakers saw the recovery of the US economy still far from the previously set employment and inflation targets.


In fact, previous NFP employment data also displayed weaker -than -expected readings even as inflation continued to show an increase.



US stock market futures were also seen trading lower, with the S&P 500 index down 0.3% and the Dow Jones index down nearly 0.5%.


Meanwhile, the pound depreciated with the movement displayed still around the same price of $ 1.4100 against the USD.


The euro traded below $ 1,2200, down from a 4-month high it reached on Wednesday despite a gradual reopening of Europe.


The next market focus will be on the European Zone and UK manufacturing and services PMI data to be published in the European session tomorrow, with the expectation that economic activity will continue to show improvement in May.


On the other hand, the Canadian dollar also depreciated against the greenback as crude oil prices also declined. However, the commodity currency is still trading around a 3 -and -a -half -year high.