EMFX Climb, Bond Yields Ease, Stocks Erase Gains Summary: The Australian and Canadian Dollars outperformed, finishing as best performing FX in volatile trade.
May 10, 2021
Daily FX Market Roundup 05.10.2021
By Kathy Lien, Managing Director of FX Strategy for BK Asset Management
What started off as a strong day for risk appetite turned into losses for currencies and equities. The Dow Jones Industrial Average and NASDAQ hit record highs at the start of New York trade but peaked shortly after, shedding their gains to end the day lower.
Currencies tumbled as well but reversed before stocks as traders lost confidence in the risk on rally. With no major economic reports to trigger today’s reversal, it was a typical exhaustion move. Investors were very optimistic ahead of Friday’s non-farm payrolls report, it disappointed in a major way and instead of selling, they continued to buy on the hope that weak jobs number meant no tapering.