USD slipped again, but is stable today (USDIndex 102.00), weak global PMI data & US data missed and Powell adding to rate hike expectations meant Stocks had another volatile session (SNAP lost -43%, and other big tech stocks hit NASDAQ -2.35%) Yields down as treasuries firmed. Asian markets mixed (Nikkei -0.26%) RBNZ raised by 50bps & Gov. Orr had more hawkish outlook than expected (rates to 4%?) NZD surged. NK tested a range of missiles as Biden left Asia, Zelenskiy says Donbas situation critical.
- USDIndex down to 101.64 yesterday back to 102.00
- Equities – USA500 -32 (0.81%) at 3941, US500FUTS at 3962 now. Snap lead some huge declines.
- Yields down, 10-yr closed at 2.76%, now 2.77%
- Oil & Gold both had positive sessions – USOil back up to test $111 Gold holds $1860 today, down from $1870.
- Bitcoin rotates through $30K – but under today at $29.8k.
- FX markets – EURUSD up to test 1.0750, holds 1.0700, USDJPY down to 127.00, Cable up to 1.2540. NZD off 5-week low at 0.6515
Overnight – Hawkish RBNZ, German Gfk missed, French Consumer Confidence missed.
Today – US Durable Goods, FOMC Minutes, ECB Financial Stability Review, Speeches from ECB’s Lagarde, Lane, Panetta, Fed’s Brainard
Biggest FX Mover @ (06:30 GMT) EURNZD (-1.02%) Tanked from 1.6650 to 1.6425 on Hawkish RBNZ. MAs aligning lower, MACD histogram turned negative crashing signal line RSI 29, OS & falling, H1 ATR 0.0043, Daily ATR 0.01413.
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Stuart Cowell
Head Market Analyst
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