USD strengthens a shares are under pressure due to concerns about inflation
USD after the beginning American the session continues to strengthen. One of the reasons for this move may be a report S&P Global PMIwhich pointed to the expanding inflation v services sectorand it certainly isn’t Good message for Fed. Expectations of a more aggressive tightening of monetary policy are putting pressure on shares a precious metal and maintains government bond yields at higher levels.
At the moment, the market sees a 9.5% chance of an increase of 75 bps at the May meeting, although the governor Powell assured that such an increase was unlikely. In addition, there is now a nearly 30% chance of a 50 bps increase followed by 75 bps on June 15.
Another reason for today’s market movements and especially strengthening dollar they may be approaching presidential election ve France. Many investors seem to be trying to secure against Marine Le Pen’s potential victory, which could seriously damage European integration. Le Pen ‘s victory could provoke more volatile reactions in the markets, similar to the referendum on Brexitu or victory Short v US presidential election.
AUDUSD broke through the main support near 0.7340. There is a lower limit of wedge formation, previous price reactions and a level of 50 SMA (green line). If the current sentiment continues, the decline may accelerate to further support to 0.7200 defined by the lower limit of the 1: 1 structure. Source: xStation5
US2000 tests key support at 1976 points, which has saved the market from bears in the past. Source. Xstation5
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