USD slipped again, Stocks had a torrid day on Friday, but recovered in final hour, Bear market talk dominated weekend press. Asian markets rose, and US Futures up 1.6% after improvements in Shanghai covid news as isolation times were reduced, but record cases in Beijing. Biden in Tokyo, offered olive branch to Kim, says US recession “not inevitable” and is willing to us force to defend Taiwan. AUD & NZD rally on new Aussie PM.
- USDIndex down to 12-day low at 102.6 and 5th down day of last seven.
- Equities – USA500 0.57 (0.005%) at 3901, US500FUTS at 3952 now.
- Yields down 10-yr closed at 2.788%, now up at 2.79%
- Oil & Gold both had positive sessions – USOil rallied to test $110.00 earlier today from $103.50 on Thursday. Gold holds $1850 today from lows at $1788 last week.
- Bitcoin rotates through $30K – Lagarde says crypto assets are ‘worth nothing.’
- FX markets – EURUSD up from 1.0355 to 1.0600, parity calls falling. USDJPY under 128.00, and Cable back to 1.2570. AUD again outperformed in Asia.
Overnight – GBP House Prices hotter than expected & RBA’s Kent says the Bank’s estimate of the neutral rate is 2 to 3%.
Today – German Ifo Survey, Speeches from BOE’s Bailey ECB’s Villeroy & Fed’s Bostic
Biggest FX Mover @ (06:30 GMT) AUDUSD (+1.20%) Rallied from lows at 0.7000 on Friday to 0.7125 today, following new labor PM’s election. MAs aligning higher, MACD signal line & histogram moving higher line, RSI 70, OB & rising, H1 ATR 0.0020, Daily ATR 0.0111.
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Stuart Cowell
Head Market Analyst
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