Posted at 24 May 2022 / Categories Market Roundups
Market Roundup
•US Apr Chicago Fed National Activity 0.47,0.44 previous
•Belgium May NBB Business Climate 1.8, 2.4 previous
•French 12-Month BTF Auction 0.051%,-0.147% previous
•French 3-Month BTF Auction -0.603%,-0.628% previous
•French 6-Month BTF Auction -0.400%, -0.471% previous
•US 3-Month Bill Auction 1.060%,1.050% previous
• US 6-Month Bill Auction 1.530%,1.490% previous
Looking Ahead - Economic Data (GMT)
• 00:30 Japan May Manufacturing PMI 53.5 previous
• 00:30 Japan May Services PMI 50.5 previous
Looking Ahead - Economic events and other releases (GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro rose against dollar on Monday after German data showed a resilient economy and European Central Bank President Christine Lagarde strengthened expectations about rates reaching zero or even positive territory by year-end. The ECB is likely to lift its deposit rate out of negative territory by the end of September and could raise it further if it sees inflation stabilising at 2%, Lagarde said on Monday. German business morale rose unexpectedly in May, as Europe’s largest economy showed resilience in the face of high inflation, supply chain problems and the war in Ukraine. Immediate resistance can be seen at 1.0682(38.2%fib), an upside break can trigger rise towards 1.0703 (Higher BB).On the downside, immediate support is seen at 1.0627 (30DMA), a break below could take the pair towards 1.0561 (23.6%fib).
GBP/USD: The pound rallied on Monday, persisting at more than two-week highs against a broadly weaker dollar, as traders await key data on the UK’s manufacturing industry this week. The strength of the pound is largely down to broad dollar weakness, as investors sold the U.S. unit on hopes that loosening lockdowns in China could help global growth. Strong labour numbers early last week had reinforced expectations that the BoE will need to continue raising interest rates to fight high inflation. Data on Friday showed British retail sales jumping unexpectedly in April. Immediate resistance can be seen at 1.2605(38.2%fib),an upside break can trigger rise towards 1.2675(Higher BB).On the downside, immediate support is seen at 1.2427 (5DMA), a break below could take the pair towards 1.2439 (23.6%fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Monday amid hopes recent rate cuts in China will stem an economic slowdown in the giant commodity importer. Oil prices were little changed as worries over a possible recession offset an outlook for higher fuel demand with the upcoming U.S. summer driving season and Shanghai’s plans to reopen after a two-month coronavirus lockdown.U.S. crude futures settled up 1 cent at $110.29 a barrel and Brent rose 87 cents to settle at $113.42.The Canadian dollar was last trading 0.02% higher at 1.2794 to the greenback. Immediate resistance can be seen at 1.2838 (23.6%fib), an upside break can trigger rise towards 1.2856(9DMA).On the downside, immediate support is seen at 1.2762(38.2%fib), a break below could take the pair towards 1.2697 (50%fib).
USD/JPY: The dollar edged lower against the Japanese yen on Monday as investors cut their bets on more greenback advances based on market expectations for rising yields as the Federal Reserve tightens money supply. Atlanta Federal Reserve President Raphael Bostic said on Monday that the quick response in financial markets to tighten monetary policy offers hope that other parts of the economy may adjust more quickly as well.The U.S. dollar index , which had hit a two-decade high of 105.01 on May 13, was last down 0.82% at 102.09.Strong resistance can be seen at 128.14(5DMA), an upside break can trigger rise towards 129.21(23.6fib).On the downside, immediate support is seen at 127.15 (38.2%fib), a break below could take the pair towards 125.43(50%fib).
Equities Recap
European stocks closed higher on Monday with investors shrugging off concerns about growth and inflation for now and reacting positively to news on the merger & acquisition front and data showing an improvement in German business sentiment.
UK's benchmark FTSE 100 closed up by 1.68 percent, Germany's Dax ended up by 1.38 percent, France’s CAC finished the day up by 1.17 percent.
U.S. stocks ended higher on Monday as gains from banks and a rebound in market-leading tech shares supported a broad-based rally following Wall Street's longest streak of weekly declines since the dotcom bust more than 20 years ago..
Dow Jones closed up by 1.98% percent, S&P 500 closed up by 1.86% percent, Nasdaq settled up by 1.59% percent.
Treasuries Recap
U.S. Treasury yields rose on Monday as risk sentiment improved ahead of a busy week that will include minutes from the Federal Reserve's latest meeting and new supply of short- and intermediate-dated debt.
Benchmark 10-year notes rose seven basis points at 2.861%. Two-year note yields gained four basis points to 2.627%.
Commodities Recap
Gold prices climbed on Monday, as weakness in the dollar and growth concerns in the economy lifted the metal, although non-yielding bullion pared some gains after U.S. Treasury yields rose.
Spot gold rose 0.4% to $1,853.70 per ounce by 2:20 p.m. ET (1820 GMT). Prices rose more than 1% and hit their highest since May 9 at $1,865.29 earlier in the session.U.S. gold futures settled up 0.3% at $1,847.8.
Oil prices were little changed on Monday, settling just slightly higher as worries over a possible recession vied with an outlook for higher fuel demand with the upcoming U.S. summer driving season and Shanghai's plans to reopen after a two-month coronavirus lockdown.
U.S. West Texas Intermediate (WTI) crude settled up 1 cent, or 0.01%, at $110.29 a barrel, while Brent crude futures settled up 87 cents, or 0.7%, to at $113.42.