The British pound is in positive territory on Wednesday. This follows an abysmal 5-day slide which saw the pound fall as much as 600 points.
15-06-2022 09:55 GMT
by Kenneth Fisher
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The Australian dollar has reversed directions on Wednesday and climbed sharply. In the European session, AUD/USD is trading at 0.6937, up 0.98% on the day.
If your fancy is a currency with wild swings, then stay put and don't change the channel.
15-06-2022 07:11 GMT
by Kenneth Fisher
Oil is noisy but sideways
Oil prices traded in a very wide range overnight, but like currency markets, once the histrionics passed and the dust settled, didn’t do a lot, remaining near to recent highs. Brent crude ranged between USD 119.00 and USD 125.00 before finishing just 1.05% lower at USD 120.85 a barrel.
15-06-2022 05:57 GMT
by Jeffrey Halley
Dollar eyes FOMC rate decision
Currency markets had a choppy but ultimately range trading session overnight, as higher US yields once again supported the US dollar modestly, while pre-FOMC caution limited its gains. The Asian session is being marked by similar price action, the US dollar easing today as investors lighten their exposure.
15-06-2022 05:47 GMT
by Jeffrey Halley
The sell-everything trade has mostly paused for breath over the last 24 hours, with US equities finding their feet overnight, Asian equities rallying today, and the US dollar giving back some of its recent gains. Bond markets remain the exception.
15-06-2022 04:19 GMT
by Jeffrey Halley
Wall Street was quick to fade the morning rebound that stemmed a modest improvement with producer prices, possibly providing some hope that core inflation continues to ease for businesses. Wholesale prices are still climbing higher and while they are slightly off the record annual pace, this report does not change anything for the Fed. Aggressive tightening over the next handful of policy meetings is the only course of action for the Fed.
PPI
PPI rose 0.8% for the month and 10.8% over the pas
14-06-2022 13:20 GMT
by Edward Moya
Oil gains on tight supplies, China concerns
Crude prices rallied as energy traders focus on the supply-demand imbalance that shows no signs of easing and shrugs off China COVID concerns and the early signs of crude demand destruction in the US. Gasoline prices are above five dollars a gallon nationally and no relief is expected anytime soon. Refiners need to get diesel inventories higher otherwise we could see some shortages in the near future.
President Biden will visit Saudi Arabia in the m
14-06-2022 13:16 GMT
by Edward Moya
NZD/USD has extended its losses today. In the North American session, NZD/USD is trading at 0.6222, down 0.59% on the day.
The New Zealand dollar continues to fall, and fast.
14-06-2022 10:26 GMT
by Kenneth Fisher
European stocks are tumbling again on Tuesday, while US futures are marginally higher ahead of the open after a terrible start to the week.
Markets await FOMC meeting
The mood has turned very negative since the latter half of last week, with the ECB initially leaving investors in a haze and the US inflation data on Friday delivering the knockout blow. While Wall Street is eyeing a marginally higher open, I'm far from convinced it can maintain that ahead of the Fed decision tomorrow.
Expectations
14-06-2022 09:51 GMT
by Craig Erlam
The Japanese yen continues to drift this week. In the European session, USD/JPY is trading at 134.30, down 0.09% on the day.
All eyes on the Federal Reserve
The Federal Reserve holds its policy meeting on Wednesday.
14-06-2022 07:40 GMT
by Kenneth Fisher
It has been a rough spell for the Australian dollar, which has steadied after a four-day slide. This downswing saw AUD/USD plunge over 300 points and break below the symbolic 70 level.
Market nerves weigh on the Australian dollar
Ahead of Wednesday's FOMC rate meeting, risk sentiment is nowhere to be found.
14-06-2022 05:53 GMT
by Kenneth Fisher
The supply-side squeeze keeps oil prices elevated
Oil prices remained almost unchanged overnight, with Brent crude finishing at USD 122.10, and WTI closing at USD 121.10 a barrel. The continuing squeeze on refined products globally, as well as a lack of investment to bring online more supplies from OPEC members, or other sources, means lost Russian production is nowhere near being covered by global markets.
14-06-2022 04:06 GMT
by Jeffrey Halley
Higher yields, safety first, sends US dollar higher
The dollar index soared overnight, driven by risk aversion, higher yields and ramped-up hiking expectations from the FOMC this week. The dollar index finished 0.97% higher at 105.20, easing slightly in Asia to 105.10.
14-06-2022 03:56 GMT
by Jeffrey Halley
Markets nerves ahead of FOMC meeting
Overnight, panic around rate hike expectations by the Fed increased and US bond yields rose aggressively across the curve. Recessionary fears increased and in the self-fulfilling negative feedback loop created, US equities were once again crushed.
14-06-2022 03:12 GMT
by Jeffrey Halley
Equity markets jittery, US dollar soars
Things didn’t improve from Friday overnight in New York, as the market scrambled to price in a 0.75% by the FOMC, whose two-day meeting starts today. Among the biggest casualties were the bond market, where yields soared, and the 2/10-year tenor spent part of the day inverted.
14-06-2022 02:59 GMT
by Jeffrey Halley
US stocks only had one way to go after inflation fears intensified and raised the risk of stronger tightening by the Fed and a much sooner recession. Wall Street is facing a plethora of negative headlines, but the problem is that until we see a deterioration with credit conditions and market functioning, the Fed has the greenlight to tighten as much as possible to get inflation under control.
An ugly inflation report is being followed by a ‘ferocious’ COVID outbreak in Beijing that will weigh
13-06-2022 16:40 GMT
by Edward Moya
The Australian dollar has started the week with sharp losses. AUD/USD is trading at 0.6933, down 1.55% on the day.
US recession fears send Australian dollar tumbling
The week ended with a disappointing US inflation report.
13-06-2022 11:38 GMT
by Kenneth Fisher
We're only a few hours into trading on Monday and already it's been action-packed across the board, setting us up for another blockbuster week.
We'll start with equity markets which are in freefall as the reality of high inflation, even faster monetary tightening and a cost-of-living crisis really kick in. Investors spent the last couple of weeks of May asking themselves whether the worst is priced in and they very much now have their answer.
We all sensed the change in tone from ECB President L
13-06-2022 11:20 GMT
by Craig Erlam
Oil pares gains amid Covid restrictions and economic fears
Oil prices are a little lower again on Monday after a remarkable run over the last month that saw crude rally more than 20%. While many factors remain bullish as a result of the extreme tightness in the market, there are two things that have constantly been a potential downside risk and we're seeing both flaring up.
Covid cases in China mean more restrictions and lockdown risk, while global economic fears are now mounting and we're now n
13-06-2022 11:14 GMT
by Craig Erlam
The British pound is down sharply at the start of the week, as US inflation and weak UK numbers are weighing on the pound. In the European session, GBP/USD is trading at 1.2174 down 1.16% on the day.
13-06-2022 07:40 GMT
by Kenneth Fisher