Internal Report & Short Market Recap - 21/05/25

Good day team,

Here is today's short market recap and internal report (21/05/2025)

? Dollar Slips as Fiscal Fears Mount

USD weakened after Trump’s $4.9T tax-and-spending bill sparked fresh concerns over U.S. debt sustainability. Moody’s warned of further credit stress amid widening deficits.

?️ Oil Soars on Middle East Escalation

WTI surged as Israel-Iran tensions flared. U.S. intel flagged possible Israeli strikes on Iranian nuclear sites, while nuclear deal hopes dimmed, tightening supply outlook.

? Gold Climbs on Safe-Haven Flows

Gold rose 0.9%, supported by geopolitical risks and dollar softness. Traders hedged against fiscal volatility and conflict spillover in the Middle East.

? Risk Sentiment Mixed as Policy Risks Build

Equity markets were rangebound, balancing oil shock risk with steady U.S. yields. Traders eye fiscal clarity and potential credit downgrades as the next directional cue.

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