The week is ending on a more positive note for Wall Street, although European markets continue to struggle. US services activity is rebounding at a rate not seen for at least 11 years, as the PMI for the sector hits 62.2. The European figures remain strong as well, but without the benefit of fiscal stimulus and a still-struggling vaccine response it is perhaps harder to see whether these parts of the global economy can continue to recover at a similar pace to the US. Considering the significant changes expected by the Biden tax hike US stocks are remaining quite resilient, helped along by the continued good news flowing from earnings season. So far the reporting period has gone well, and few surprises have appeared to rock the boat. 

Next week of course sees the latest Fed meeting, and the release of Q1 US GDP figures. Powell is expected to leave everything on hold for now, continuing his refrain that the jobs recovery has much further go to, even if the overall picture is very encouraging. This should keep the supportive outlook for risk assets, and will help to extend the remarkably quiet atmosphere in markets throughout the year so far – after 2020’s volatility, 2021 continues to surprise, but in its calm and ordered way, with little so far of the madness that characterised its predecessor. 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD remains pressured below 1.21 ahead of critical US CPI data

EUR/USD is under pressure below 1.2150 as the dollar benefits from concerns over the escalation in the Middle East and fears of rising interest rates.


GBP/USD trades above 1.41 amid risk-off mood, upbeat UK GDP

GBP/USD is trading above 1.41 but below the highs. The risk-off mood boosts the safe-haven US dollar, while sterling is underpinned by upbeat UK GDP data. The economy shrank by 1.5% in Q1, better than expected. US inflation data is awaited. 


Gold: A big miss on US CPI to drive XAU/USD above 200-DMA?

Gold pressured amid fears of rising inflation, interest rates. US dollar’s haven demand lifted on Middle East tensions. Disappointing US CPI could revive gold’s bullish momentum.

Gold News

Top six cryptocurrencies under $2 that overtake Bitcoin

Bitcoin price reaching over $64,000 has priced out many investors in the market that has missed many of its bull rallies. Investors are increasingly looking into altcoins, which have absolute prices that are cheaper than the leading cryptocurrency.

Read more

US Consumer Price Index April Preview: The two base effects of inflation

American consumer prices are set to rise by the most in a decade as the base effect from last year’s pandemic collapse reaches its height. The Consumer Price Index (CPI) is expected to climb 0.2% in April.

Read more