Oil strikes 2-year high

“A lot of people get so enmeshed in the markets that they lose their perspective. Working longer does not necessarily equate with working smarter. In fact, sometimes is the other way around.” - Martin Schwartz

MARKET NEWS

Oil Rises to Two-Year High With Investors Eying Demand Comeback

Futures in New York advanced 1.4% on Monday to the highest since April 2019. The U.S. and China, along with parts of Europe, are rapidly recovering from the pandemic as vaccinations increase, overshadowing concerns around weaker consumption in India. 

In the U.S., the number of passengers at airports jumped to the highest since the pandemic began, a sign of the domestic travel revival that’s leading the way in a jet fuel demand rebound. (Bloomberg)

Gold Hits Three-Month High as Fund Buying, ETFs Buoy Sentiment

Hedge fund managers increased their long-only position in U.S. futures and options by 12% from a week earlier, the most since June, according to government figures on Friday. Meanwhile, data compiled by Bloomberg show ETF investors have bought bullion for the past six sessions, following months of sales. (Bloomberg)

Wall St ends lower, pulled down by tech stocks

Wall Street stocks ended lower on Monday, weighed down by tech shares as signs of growing inflation worried investors about the potential for tighter monetary policy. Of the 11 major S&P sectors that declined, technology and consumer were among the biggest losers. (Reuters)

FOREX

Dollar inches lower as Treasury yields hold firm

The dollar edged lower on Monday as inflation jitters, exacerbated by record high prices paid in a regional U.S. manufacturing survey, benefited riskier currencies at the greenback's expense. The Empire State report from the New York Federal Reserve showed a survey record high of prices paid by manufacturers in New York state as materials producers struggle to keep up with booming demand. (Reuters)

Sterling consolidates gains as Britain enters second phase of reopening

Sterling held on to recent gains against the dollar on Monday as Britain took a big step towards reopening its economy, lifting a number of social restrictions imposed to combat COVID-19. Cafes, bars and restaurants reopened for indoor service and a ban on international travel has also been lifted, among other easing measures. (Reuters)

Commodities Send Loonie Soaring, Creating Quandary for Canada

Should the commodities boom hold, it would represent a windfall for the resource-rich nation endowed with oil, natural gas and vast lands to mine and farm. Export receipts are already at near a record and poised to go higher. Elevated commodity prices are driving up the currency and longer-term rates, potentially crowding out other key sectors that may struggle to compete under a stronger Canadian dollar. (Bloomberg)

MORE HEADLINES

•    AT&T to spin off and combine WarnerMedia with Discovery in deal that would create streaming giant (CNN)
•    World Economic Forum Cancels 2021 Annual Meeting in Singapore (USA News)
•    Fed’s Clarida Says Not Yet Time to Start Taper Talk (BNN)
•    Michael Burry of ‘The Big Short’ reveals a $530 million bet against Tesla (CNBC)
•    Elon Musk clarifies that ‘Tesla has not sold any Bitcoin’ (CNBC)

CHART

Ethereum (Ether) – 4-hour Candlesticks

  
Source: GKFX Prime Metatrader 4 

ETH/USD has now retraced 50% of its big rally that began on April 20 and has formed what could be the start of a double bottom pattern near 3100. - Prepared by Trading Writers*

CALENDAR

*Times in GMT

 
Source: FX Street Economic Calendar

SOURCE 

https://www.fxstreet.com/economic-calendar
https://finance.yahoo.com/news/us-stocks-wall-st-ends-200040359.html
https://www.reuters.com/article/global-forex/forex-dollar-inches-lower-as-treasury-yields-hold-firm-idUSL2N2N41X1
https://www.bloomberg.com/news/articles/2021-05-16/oil-edges-higher-as-demand-optimism-offsets-asia-virus-flare-up
https://finance.yahoo.com/news/commodities-send-loonie-soaring-creating-141902013.html
https://money.usnews.com/investing/news/articles/2021-05-17/world-economic-forum-cancels-2021-annual-meeting
https://www.bnnbloomberg.ca/fed-s-clarida-says-not-yet-time-to-start-taper-talk-1.1604763
https://www.cnbc.com/2021/05/17/michael-burry-of-the-big-short-reveals-a-530-million-bet-against-tesla.html
https://www.cnbc.com/2021/05/16/elon-musk-suggests-tesla-is-dumping-bitcoin.html