Fed Financial Stability Report: Asset prices may be vulnerable if risk appetite falls

Ross J Burland FXStreet

The Federal Reserve has stated that asset prices may be vulnerable if risk appetite falls in a report that summarizes the Fed's board’s framework for assessing the resilience of the US financial system and presents the Board’s current assessment.

Full report, May 2021

Markets are meanwhile fixated on the US data and tomorrow's Nonfarm Payrolls report will be the focus for markets in the session's ahead.

So far, however, the central bank's Chair, Jerome Powell, has argued the labour market is far short of where it needs to be to start talking of tapering asset purchases.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.