XE Market Analysis: Europe – May 11, 2021

The dollar has gained for a second day, which has been a rare feat over the last five weeks. This has come amid wider recognition that the disappointing headline readings of the April U.S. jobs report was down to temporary, supply-side issues — although sufficient to maintain the Fed’s prevailing commitment to ZIRP — and with market participants turning attention to tomorrow’s U.S. inflation data. Fed speakers yesterday talked up prospects for the labour market while mostly still maintaining dovish signalling.