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Forex News

Sentiment deteriorates amid concerns of a second coronavirus’ wave

What you need to know on Wednesday, May 13th:

 US inflation fell big in April. According to the official release, consumer prices sank 0.8% MoM in April, the biggest decline since 2008. Annual inflation was up a measly 0.3%, while the core annual CPI came in at -0.4%, amid plummeting oil prices. The news hit the greenback during US trading hours.

The market’s sentiment was mostly sour, amid persistent tensions between the US and China, and news indicating at least six new cases of coronavirus in Wuhan, China, where the pandemic stated.

The Pound came under selling pressure as the market tries to digest UK PM Johnson’s plan to bring the kingdom out of the lockdown. Also, the finance minister, Rishi Sunak, announced the furlough scheme would be extended until the end of October. That means that the government will continue to support roughly 7.5 million people at the cost of £14bn a month, although Sunak added that the government would ask companies to “start sharing” part of such cost starting next August.

Wall Street struggled around its opening levels for most of the day, although indexes collapsed ahead of the close, with the DJIA losing roughly 450 points. The Nasdaq and the S&P shed over 2.0% each. Commodity-linked currencies came under selling pressure and closed in the red against the greenback.

US Treasury yields continue to fell throughout the day, the yield on the 10-year note settled at 0.66%.

Commodities spent the day in consolidative mode, posting modest advances within familiar levels.

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