USD sinks to 1-month low (USDIndex 101.43) as CB easing pressures absorbed, despite GDP slipping to -1.5% from -1.3% & Pending Home sales at -3.9% from -1.6%. Stocks had a very strong day on weaker USD (NASDAQ +2.68%) and Yields slipped. Asian markets followed US lead (Nikkei +0.66%, Hang Seng +2.07%) and European FUTS are higher. BOJ’s Kuroda & PM Kishida, talk up YEN and want it stabilized, see core CPI at 2% for next 12-months.
- USDIndex sinks further to 4-week lows trades at 101.55. (-1.5% this week, after -1.37% last week)
- Equities – USA500 +79 (1.99%) at 4057, US500FUTS at 4050 now. Discount Retailers lead markets higher on good Earnings – Dollar Tree +21.87%, Macy’s +19%, Dollar General +13% TSLA +7% NVDA +5%
- Yields 10-year yield edged lower to 2.75% at close and trades at 2.76% now.
- Oil & Gold had mixed sessions – USOil rallied after a cautious week back to test over $114, trades at $13.70 now, Gold is holding over $1850 at $1854.
- Bitcoin continues to weaken under $30K at $28.6k, having touched $27.9k yesterday.
- FX markets – EURUSD up to test 1.0750, breaching 1.0700 again, USDJPY capped under 127.00, having tested 126.50 Cable to 1.2625, from 1.2540 yesterday.
Overnight – JPY – Tokyo Core CPI in line, (1.9%) AUD Retail Sales in line (0.9%)
Today – US PCE Price Index, Personal Income & Consumption, Speech from ECB’s Lane.
Biggest FX Mover @ (06:30 GMT) NZDUSD (+0.51%) gave up yesterday’s declines to 0.6450 and retook 0.6500 today, trades at 0.6512 (16-day high). MAs aligning higher, MACD histogram positive & holds 0 line, RSI 65 & rising, H1 ATR 0.0010, Daily ATR 0.0077.
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Stuart Cowell
Head Market Analyst
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