Retail sales miss weighs on USD

“The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance.” – Ed Seykota

MARKET NEWS

Sentiment hurts the greenback

The greenback fell on Friday, following worse-than-expected US data. Retail Sales showed no growth in April, down from 10.7% in the previous month, while the core reading fell 1.5%. Speculation that the US Federal Reserve would need to tighten its monetary policy amid increased inflationary pressures cooled down, to the detriment of the American currency. (FX Street)

Metals Rally Falters With China Cracking Down on Steel Sector

Iron ore futures plunged as much as 11% in Singapore and steel rebar slid as Chinese officials rolled out fresh measures for steelmakers to take the steam out of markets. Base metals have also come under pressure in recent days, with copper down 4.7% from a record high set on Monday.

The measures targeting China’s steel sector come after surging raw-material costs sparked the biggest jump in Chinese factory-gate prices in more than three years in April. (Bloomberg)

Gold up a second week to settle at highest since February

Gold has been torn between the prospect of higher inflation, with evidence of pricing pressures building in consumer and producer-price data, but the chance of the Fed being forced to lift interest rates to cool the economy has checked bullion’s moves somewhat, some analysts have said. (Market Watch)

Wall Street ends volatile week sharply higher

Wall Street closed higher in a broad rally, an upbeat conclusion to whipsaw week of buying and selling as signs of a rebounding economy squared off against mounting inflation jitters. All three major U.S. indexes extended Thursday's gains, which saw S&P 500 notch its biggest one-day percentage bump in over a month. (Reuters)

No Pipeline, No Problem as Energy Leads the Stock Market Higher

It’s going to take more than a pesky pipeline shutdown to knock energy stocks off their pedestal as this year’s best performing group in the S&P 500. Oil & gas shares are up 40% this year compared with a 11% gain in the broad equities benchmark. (Bloomberg)

It’s ‘Doge Day Afternoon’ as Memecoin Jumps 47%; Ether and Bitcoin Rise

Dogecoin soared on Friday but the cryptocurrency’s circulation ownership raises questions. Ether pops as its futures market hits a record. Bitcoin faces pressures from its options market and a downward trending dominance percentage. (CoinDesk)

MORE HEADLINES

•    U.S. gasoline shortage improves, some regions still suffer hefty outages
•    Iran Gears Up for Return to Oil Market as U.S. Talks Advance
•    Ministers will make England lockdown easing decision on June 14
•    Disney World and other U.S. theme parks update mask rules
•    Gundlach: Stimulus checks are opening the door to universal basic income
•    Earnings to Watch Next Week: Home Depot, Walmart, Target, and Deere in Focus
•    Soros Bought Up Stocks Linked to Bill Hwang’s Archegos Implosion

ANALYSIS

USD: The greenback remains vulnerable – MUFG

“With the US dollar the global reserve currency the US Treasury market remains a key market for global investors and with hedging costs still so low due to the short-end of the US curve being well anchored, the yield pick-up net of hedge is increasingly attractive.”

“While we think US yields will head higher, the above factors should mean moves are orderly and therefore consistent with the US dollar weakening further.”

A New Era of Short Bets Against German Bonds Is Beginning - Bloomberg

Toronto-Dominion Bank was forced to close its recommendation for investors to buy German bonds last week, after yields climbed above their stop-loss level. NatWest Markets are calling for investors to sell bunds, hailing the end of the “supercycle” that has seen the securities rally for the best part of two decades. Goldman Sachs Group Inc. and ING Groep NV are among banks who see yields rising to 0% by the end of the year. 

CHART

Wall Street 30 – Weekly Candlesticks

  
Source: GKFX Prime Metatrader 4 

The selloff in WS30 this week found support just ahead of the long-standing trendline from the weekly chart that began at the March 2020 lows. - Prepared by Trading Writers*

CALENDAR

*Times in GMT

 
Source: FX Street Economic Calendar

SOURCE

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/usd-the-greenback-remains-vulnerable-mufg-202105141550
https://www.fxstreet.com/news/forex-today-sentiment-hurts-the-greenback-202105161316
https://www.reuters.com/article/us-usa-products-colonialpipeline-idUSKCN2CX0BV
https://finance.yahoo.com/news/iran-gears-return-oil-market-230100611.html
https://www.bloomberg.com/news/articles/2021-05-16/no-pipeline-no-problem-as-energy-leads-the-stock-market-higher
https://finance.yahoo.com/news/1-uk-final-lockdown-easing-080749116.html
https://www.cnbc.com/2021/05/16/disney-world-and-other-us-theme-parks-update-mask-rules.html
https://www.bloomberg.com/news/articles/2021-05-14/metals-rally-falters-with-china-cracking-down-on-steel-sector
https://finance.yahoo.com/news/gundlach-on-stimulus-and-ubi-120022461.html
https://www.fxempire.com/forecasts/article/earnings-to-watch-next-week-home-depot-walmart-target-and-deere-in-focus-730153
https://www.bloomberg.com/news/articles/2021-05-15/soros-bought-up-stocks-linked-to-bill-hwang-s-archegos-implosion
https://www.reuters.com/article/us-usa-stocks-idUSKBN2CV13M
https://finance.yahoo.com/news/market-wrap-doge-day-afternoon-202823525.html