USD recovers (USDIndex 104.60) after stumble on auction data, Stocks down as weaker than expected confidence data, a plunge in the Richmond Fed index and downdraft of big tech were catalysts for some selling (USA100 tumbled -2.98%, -28% for the year). US blacklists Chinese companies for allegedly supporting Russian army. Yields richened led by the long end with the 10-year ending 2 bps lower at 3.18%. Weakness has spilled over from European bonds after hawkish ECB speak from Lagarde and others that has seen core rates jump over 10 bps. Lagarde confirmed the bank’s commitment to rate hikes in July and September. Finland, Sweden nearer Nato Membership. China would cut mainland coronavirus quarantine requirements for all arrivals. Oil at 111.20, Gold down.
- USDIndex up to 104.60, on safe-haven flows.
- Equities – USA100 tumbled -2.98% with the USA500 losing -2.01%, and the USA30 down -1.56%. JPN225 fell 0.98%, Hang Seng is currently down -1.8%, the CSI 300 -1.1%.
- Yields 10-year rate down -3.9 bp at 3.12%. Bund futures are also rallying.
- Oil topped to $112.20, currently at $111.20. – Market tussled between concerns about the global economy and tight global oil supplies.
- Gold down to $1,817. US bans new imports of Russian gold & Fed policymakers promise further rapid interest rate hikes.
- Bitcoin broke 20K!
- FX Markets – EURUSD remains below the 1.06 mark and is again eyeing the 20-year low of 1.038, USDJPY is at 135.86, Cable trades at 1.2175 down from 1.2290.
Today – Focus is on Eurozone Consumer Confidence and US Q1 GDP, but mainly on Fed and ECB Speakers.
Biggest FX Mover @ (06:30 GMT) BTCUSD (-1.49%). Below 20K again. MAs aligning lower, MACD lines & RSI are negatively configurated. H1 ATR 186.639, Daily ATR 1825.737.
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Andria Pichidi
Market Analyst
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