Global rally continues as White House considers more aid after dismal jobs report - 11.5.2020

The Dollar weakening reversed today ahead of inflation report due later in the afternoon. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, edged down 0.1% to 99.75 Friday as Labor Department reported unemployment rate jumped to 14.7% from 4.4% in previous month. Both the EUR/USD and GBP/USD continued rising Friday despite report German exports plunged above expected 12% in March, the steepest drop in since 1990. Both pairs are lower currently. USD/JPY and AUD/USD continued climbing on Friday with the dynamics intact for both pairs currently.

Futures on three main US stock indexes are advancing currently after closing sharply higher on Friday. More companies including Uber, Mitsubishi Electric and Hitachi will report quarterly results today. Stock indexes in US ended higher on Friday : the three main US stock indexes recorded gains ranging from 1.6% to 1.9%. The SP500 currently trades at more than 22 times expected 12-month earnings, according to FactSet. That is a level not seen in roughly 20 years while companies are unwilling to provide guidance on future performance due to heightened uncertainty. European stock indexes are extending gains currently. Asian indexes are mostly rising today with Hong Kong’s Hang Seng index ahead gaining 1.6% currently.

Brent is edging lower today. Oil prices ended higher last session as the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, have started cutting production by 9.7 million barrels a day in May and June. The US oil benchmark West Texas Intermediate (WTI) futures ended higher Friday: June WTI gained 5.1% but is falling currently. July Brent crude closed 5.1% higher at $30.97 a barrel on Friday, booking a 17.1% gain for the week.