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Markets looking for direction after Powell testimony Federal Reserve Chairman Jerome Powell’s semi-annual testimony on Capitol Hill was the centre of attention overnight. Mr Powell finally dispensed with soft landings, describing them as challenging, and instead said that a recession is “certainly a possibility.” That should have been enough to spark a somewhat counterintuitive risk sentiment rally as Fed hiking expectations were dialled back, but instead, we got a mixed response as Mr Powell as

23-06-2022 04:48 GMT by Jeffrey Halley

Oil crushed on recession fears, gold steadies

Oil pares losses after Powell testimony Oil volatility will remain elevated now that opposing opinions are emerging on where prices will finish the year. Oil prices are under pressure as global recession fears accelerated crude demand destruction calls. Inflation and growth concerns won’t be improving anytime soon and that has all the short-term drivers turning negative for the crude demand outlook. Citigroup's Morse is expecting oil to fall to the USD 80s by the fourth quarter, while Goldma

22-06-2022 13:24 GMT by Edward Moya

Powell signals Fed needs to be nimble, Canada Inflation hits near 40-year high, bitcoin tries to hold USD20k

After what might be the worst first six months of the trading year for the S&P 500 since the 1970s, US stocks were ready to turn positive over the slightest hint that the Fed may change their aggressive tightening course. Equities rallied after Powell said the Fed will need to be nimble in responding to incoming data and the evolving outlook.

22-06-2022 13:20 GMT by Edward Moya

Oil retreats, gold stuck in range

Are we seeing a recession being priced into oil markets? Is oil prices getting whacked the clearest sign yet of recession fears spreading across financial markets? With equity markets, it's been a death by a thousand cuts, as inflation panic has morphed into tightening and growth fears and finally the reality of a recession.

22-06-2022 10:13 GMT by Craig Erlam

Don't get too excited by bear-market rallies

European stock markets are falling heavily again on Wednesday, reminding us all once more why we shouldn't get excited by the bear-market rallies. There's a desperation to add substance to the often sizeable rallies that pop up in equity markets despite little or no rationale behind them and today is once again a lesson in why we shouldn't bother. In much the same way that "if it seems too good to be true, it probably is", if stocks are rallying for seemingly no reason, there probably isn't one.

22-06-2022 10:07 GMT by Craig Erlam

NZ dollar slides as risk sentiment falls

The New Zealand dollar is sharply lower on Tuesday. NZD/USD is trading at 0.6261, down 1.14% on the day. New Zealand data has been mixed this week.

22-06-2022 09:07 GMT by Kenneth Fisher

British pound yawns as CPI matches estimate

UK inflation nudged higher in May, as was expected. The headline release rose to 9.1% YoY, up slightly from the 9.0% gain in April.

22-06-2022 07:42 GMT by Kenneth Fisher

Canada's CPI expected to rise

The Canadian dollar started the week with gains, but has reversed directions on Wednesday. USD/CAD is trading at 1.2978, up 0.47% on the day. CPI expected to hit 7.4% Canada releases the May inflation report later today, and the markets are bracing for another rise.

22-06-2022 06:26 GMT by Kenneth Fisher

Oil pares gains, gold range trades

Oil prices slump in Asia Oil prices probed the topside intraday overnight but gave back those gains with Brent crude almost unchanged at USD 114.60 a barrel, and WTI edging 0.55% lower to USD 109.65 a barrel. In Asia, both contracts have slumped, with WTI notably, falling through longer-term support.

22-06-2022 04:57 GMT by Jeffrey Halley

Currency markets continue sideway trading

US dollar steady ahead of Powell testimony With the notable exception of the Japanese yen once again, currency markets refused to buy into the snake oil promises of the equity markets. The US dollar did push lower intraday across the board but recovered as US yields held firm.

22-06-2022 04:40 GMT by Jeffrey Halley

Asia markets drop ahead of Powell testimony

Asian equities ignore the overnight Wall Street rally Wall Street rallied broadly overnight, with the three main indexes having banner days as the call of buy-the-dip proved irresistible after a weekend in the Hamptons. The S&P 500 rallied by 2.45%, the Nasdaq leapt 2.51% higher, and the Dow Jones booked a healthy 2.19% gain.

22-06-2022 04:30 GMT by Jeffrey Halley

Gone in 60 seconds

Gone in 60 Seconds was a movie released in 2000 starring Nicholas Cage who is charged with stealing 50 high-end cars in three days. It is actually a remake of my preferred 1974 version, where the “hero” is set a much more reasonable target of stealing 48 cars in five days, but I guess that is productivity progress for you.

22-06-2022 04:21 GMT by Jeffrey Halley

Oil rebounds, gold struggles

Oil rallies on tight supplies Oil prices are rallying as last week’s selloff was overdone given how the short-term crude demand outlook remains for the US and China. The oil market remains too tight over the short-term and rising expectations over tougher sanctions with Russian crude should keep demand especially strong here. Energy traders saw oil prices slide almost 15% in just a week, despite a very tight market. The paid-for crude prices wasn’t justified and more of a reflection of the r

21-06-2022 14:06 GMT by Edward Moya

Blockchain of broken dreams, stocks bounce back, data shows slowing growth and not a collapse

Blockchain of Broken Dreams Crypto traders have been walking a lonely road that no one knows how low it will go. Wall Street has been closely checking the vital signs of the cryptoverse and the good news is that it is still alive. Bitcoin’s shadow is not the only thing rallying today as US stocks bounce back after a disastrous trading week sent it to bear market territory. For the longest time, it seems bitcoin hodlers were walking on the boulevard of broken dreams.

21-06-2022 14:02 GMT by Edward Moya

Bitcoin - Sinking fast

OANDA Senior Market Analyst Craig Erlam talks about bitcoin which has continued to plunge in a tough environment.

21-06-2022 11:52 GMT by Craig Erlam

British pound calm ahead of inflation

The pound is having a quiet week, after some sharp swings last week. Monday was a holiday in the US, and it was a quiet session for the US dollar.

21-06-2022 10:12 GMT by Kenneth Fisher

Oil prices recover, gold stuck in range

Oil risks remain tilted to the upside Oil prices are around 1% higher, continuing to recover from Friday's sharp sell-off. The oil market remains extremely tight but it seems the rising threat of recession created a compelling argument for it to correct lower last week.

21-06-2022 09:22 GMT by Craig Erlam

Plenty of action to come

European stocks are making small gains again on Tuesday, benefiting from the relatively calm start to the week. The US returns following the bank holiday weekend which could see activity pick up, with particular focus on what the various central bankers have to say. Jerome Powell's testimony in Congress on Wednesday and Thursday will naturally be the highlight but in this rapidly changing environment, all views will have the potential to get things moving. There's no doubt that the next few days

21-06-2022 09:14 GMT by Craig Erlam

Japanese yen punches past 136

After a quiet start to the week, the US dollar is again rallying against the hapless Japanese yen. USD/JPY is currently trading at 136.18, up 0.78% on the day.

21-06-2022 08:05 GMT by Kenneth Fisher

RBA's Lowe signals 50-bps hike

It continues to be a quiet week for the Australian dollar, in sharp contrast to last week's roller-coaster ride. AUD/USD has edged higher today, as the market response to the RBA minutes and a speech from Governor Lowe has been muted. RBA minutes, Lowe offer few clues Anyone looking for some guidance from the RBA minutes came away disappointed, as the gist of the minutes was a defence of the surprise move to raise interest rates by 50bps at the meeting.

21-06-2022 06:53 GMT by Kenneth Fisher

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