The U.K. has eased some of the quarantine rules
European stocks rebounded along with US futures following a global sell-off amid recovery concerns. On the positive side, the U.K. has eased some of the quarantine rules. Earlier today, the report showed that the UK gross domestic product grew 0.8% on the month, while April’s growth was revised down to 2% from a prior estimate of 2.3%. Today, G-20 finance ministers and central bank governors are meeting in Venice to talk about the economic recovery.
In the US, energy firms shifted into a recovery mode in premarket trading, tracking oil prices. Brent crude has settled around the 20-DMA, struggling to see more robust gains despite dollar weakness. Traders continue to express concerns over the outlook for global demand recovery amid the ongoing pandemic. Treasury yields surged higher and that is feeding a more upbeat tone across the markets in general.
Elsewhere, the European Central Bank Governing Council member Jens Weidmann said that the central bank is not aiming for inflation either above or below 2% target, adding that new policy will not try to make up for lost inflation. Meanwhile, the ECB policymaker Olli Rehn noted that the new inflation goal is unambiguous.
Meanwhile, the dollar eased as risk sentiment has improved somewhat. Still, downside momentum looks too modest to bet on deeper losses ahead of the weekend. Against this backdrop, the euro struggles just below 1.1870, and it looks like traders are not ready to push the common currency above 1.1900.
In other markets, bitcoin is little changed on the day after yesterday’s decline. BTCUSD has settled around $32 700, struggling for direction below the 20-DMA, today at $33 750. The technical picture remains neutral as long as the prices continue to cling to the mentioned moving average.
