USD stable today (USDIndex holds 102.00) following FOMC minutes that showed agreement by “most participants” that 50 bp hikes in June & July would “likely be appropriate”, Stocks had a positive session (NASDAQ +1.50%) and Yields ticked up as treasuries slipped. Asian markets mixed (Nikkei -0.27%) Shanghai reopening gradually (Port is 95% operational & schools from June 6).
- USDIndex rotates at 102.00.
- Equities – USA500 +37 (0.95%) at 3978, US500FUTS at 3967 now. NVDA +5% at close but lowered outlook following Earnings announcement, -6.82% after hours.
- Yields 10-year yield edged up to 2.781% and the policy-sensitive two-year yield was flat at 2.502%.
- Oil & Gold had mixed sessions – USOil steady after a cautious rally this week back up to $110, Gold is weaker – broke below $1850, down to $1846.
- Bitcoin rotates under $30K – at $29.6k, having touched $28.6k yesterday.
- FX markets – EURUSD up to test 1.0670, breach of 1.0700 limited, USDJPY back over 127.00, at 127.25 Cable up to 1.2550.
Overnight – RBNZ Orr – will move on rates quickly, JPY PPI beats at 1.7% vs 1.5%, World Bank says Russian invasion of Ukraine could cause “global recession”.
Today – US GDP (2nd), US IJC, Canadian Retail Sales, UK Chancellor Sunak, Fed’s Brainard. Earnings from Alibaba, Baidu. Ascension Day holidays – Germany, France, Switzerland, Denmark, Sweden, & Norway all closed.
Biggest FX Mover @ (06:30 GMT) NZDUSD (-0.26%) gave up yesterday’s gains and rejected 0.6500. Trades at 0.6440, support 0.6420 & 0.6400. MAs aligning lower, MACD histogram turned negative but holds 0 line, RSI 47 neutral, H1 ATR 0.0015, Daily ATR 0.0080.
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Stuart Cowell
Head Market Analyst
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