FxPro Financial Services Ltd | May 25, 2021 08:07AM ET
Fed officials continue to extinguish the inflationary panic and help markets return to last year's major trends. In particular, yesterday, we saw an acceleration in high-tech stocks and a simultaneous weakening of the dollar. Commodities and metals lagged in their momentum, but in our view, remain potentially attractive for the longer term.
Investors are selling off dollars and entering growth stocks, convinced that the recent spike in inflation will not lead to a tightening of monetary policy.
In addition to gold, oil is also worth watching: Brent is once again close to $68.50, an area of highs in the last two years. A move above $70 could see the bears capitulation, with the bulls gathering strength after a three-month consolidation to send the exchange rate into a new $70-80 trading range.
The FxPro analyst Team
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