European indices are down by over 2% currently
The term ’selloff‘ is one that is used quite frequently these days but as major stock indices reach record highs and fall off, I’d much prefer the term ‚pullback‘.

Some mild changes in the dollar as risk keeps more defensive
The dollar is sitting a touch lower against the euro, pound and aussie but is holding slight gains against the franc and loonie so far on the session. Overall, the moves among major currencies are relatively minor and nothing to shout about.

Latest data released by NFIB – 11 May 2021
Of note, the report also revealed a significant increase (10 points) in the share of firms that raised prices to 36.0 – its highest since the 1980s. Meanwhile, planned price increases also jumped to its highest since 2008 in another sign that inflation is picking up.

The Australian Treasury releases its annual budget for the coming fiscal year
The forecast details:
Of note for the RBA, the government forecasts CPI to only return above 2% from 2022-23 onwards with wage growth keeping below 3% through the forecast period.

Forex news from the European trading session – 10 May 2021
Headlines:
Markets:
– GBP leads, JPY lags on the day
– European equities mixed; S&P 500 futures up 0.1%

Tech struggles as the mood looks a little sluggish in Europe
After record closes in the S&P 500 and Dow last week, futures in both are pointing to slight gains with the latter set to inch closer towards the 35,000 mark. Nasdaq futures are down 0.3% as tech lags behind with yet another rotation play seen ahead

AUD/USD trades to fresh highs of 0.7880, its highest since 26 February
The AUD/USD chart is one that holds some similarity to the at the moment.
GBP/USD chart

Despite all the optimism, it will take some time before UK GDP recovers back to levels seen before the pandemic
For some context, as of February this year, UK GDP is still seen some 7.8% below the levels seen in February 2020 – before the pandemic weighed on the economy.

Does the market really care about one bad miss on payrolls?
As we get into trading today, it is still all about digesting and gauging the reaction to the surprisingly poor US jobs reports on Friday .

BBC reports that SNP and allies will have a majority
Sterling could come under pressure when markets reopen with Scottish pro-independence parties taking a majority. It’s close, but the BBC now forecasts that they have enough votes.