Forex Today: Bye bye easy money, hello carry trade? – FXStreet

What you need to take care of on Friday, May 13:
The American dollar soared on the back of risk-aversion. Panic selling hit equities and cryptos the most, as speculative interest priced in massive quantitative tightening. More and more central bankers are hinting at measures set to drain liquidity.
European Central Bank officials keep paving the way towards a July rate hike, while Bank of Canada Deputy Governor Toni Gravelle suggested that the central bank would need to raise rates above neutral.  Finally, Bank of England Governor Ramsden noted that inflation might not drop as fast as forecast, highlighting the need for more rate hikes.
It is worth noting that the US Federal Reserve is two steps ahead of other central banks, hiking rates by 50 bps in May and pledging for at least 2 or 3 more 50 bps hikes while drawing plans to reduce its balance sheet.
Adding to the ruling concerns, tensions escalate between Russia and the western world. Russian Deputy Chairman Dmitry Medvedev warned that military assistance for Ukraine risks creating a conflict between Russia and NATO. Meanwhile, Ukraine has announced it would suspend Gazprom gas transit on its territory. European Commission President Ursula von der Leyen said Russia was the “most direct threat” to the international order.
 Also, Russia menaced with retaliation should Finland join NATO. Earlier, Finland’s president  and the prime minister said that the country should apply to join NATO “without delay.”
EUR/USD fell to 1.353, now trading at around 1.0370. The GBP/USD pair plunged below the 1.2200 figure. The USD/CHF pair reached parity for the first time since December 2019, now trading at around 1.0040, while USD/JPY edged sharply lower, stabilizing at around 128.40.
Commodity-linked currencies edged lower against the greenback. AUD/USD is now at 0.6850, while USD/CAD trades in the 1.3040 price zone.
Spot gold reached a fresh monthly low, now changing hands at around $1,824 a troy ounce, while crude oil prices kept recovering, with WTI trading at $106.85 a barrel.
Global indexes closed in the red, although Wall Street managed to trim most of its intraday losses ahead of the close.
 US Treasury yields retreated amid renewed demand for safety.
Bitcoin price presents buying opportunity despite Coinbase Q1 losses and custody fears
Like this article? Help us with some feedback by answering this survey:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
EUR/USD has extended its slide to a fresh three-week low near 1.0500 in the American session. Safe-haven flows dominate the financial markets after inflation and consumer confidence data from the US, providing a strong boost to the dollar ahead of the weekend. 
GBP/USD has declined below 1.2400 for the first time in three weeks on Friday. The greenback continues to outperform its rivals on the back of the May inflation data and the disappointing consumer confidence report, weighing heavily on the pair.
Gold recovered from the multi-week low it set below $1,830 on Friday and rallies past $1.850. The intense flight to safety limit US T-bond yields' upside in the American session, helping XAU/USD find support.
Shiba Inu coin faces a looming threat from the sale of $1 trillion SHIB held by the ShibArmy. The meme coin’s burn rate witnessed a massive decline, down 75% overnight. 
Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.


Leave a Reply

Your email address will not be published.