U.S. Dollar Tumbles After Pipeline Online Attack

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U.S. Dollar Tumbles After Pipeline Online Attack

MAY 10, 2021

The U.S. Dollar is trading in negative ranges all across the board as weekend developments have inflated the prices of commodities globally. 

Overview

A ransomware attack over the country’s largest pipeline, which provides fuel across the Atlantic and New York City has it still shut this morning, only adding to the speculation in futures and prices of raw materials.

Inflation is expected as an effect with the prediction that gasoline could go up over $3.00 per gallon by Memorial Day. Copper managed to reach yet another record and iron ore prices surged by 10.0%. As a result, the MSCI Emerging Market Currency Index has gone beyond its best point since April of 2018. Canadian Dollar is moving around its best levels against the buck since September 2017.

We will see how much more concern there is about inflationary growth after we get detailed Consumer Price Index figures for April Wednesday. Overall, sentiment across markets seems to be one of cautious optimism as COVID remains a giant hurdle for the ability to re-open everywhere. The only thing domestically scheduled that could move the needle is the Feds Charles Evans giving comments on his outlook later today.


What to Watch Today…

  • No major events scheduled for today

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EUR  

The Euro is seeing some of its strongest levels since the end of January following a weekend in which risk-appetite seems to be concentrated on commodities and bets on tremendous growth down the line. There has been much progress made in the inoculation efforts as nations report over 20.0% of the adult population being vaccinated. Consequently, this has allowed countries such as France and the Netherlands to open some for business, with the former expecting to allow dining again in a week. The Astra-Zeneca vaccine will not be given past the summer, however, the new EU deal with Pfizer sets the continent up to keep primarily getting the most effective dose for the time being and going forward.

GBP  

The pound has gone up to its best point since the end of February after U.K. election results failed to give the independents a majority while giving Conservatives some more seats. Ultimately, the lack of support within lawmakers means the potential for independent referendums is low, particularly in Scotland where they will likely wait until next year to reconsider putting a vote to the people. Sterling breathing a lot easier following the political risk event.

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