Yen descent continues
The Japanese yen can't seem to buy a break. USD/JPY has jumped 0.84% today and has surged 2.22% this week.
08-06-2022 06:19 GMT
by Kenneth Fisher
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Oil is steady in Asia
Oil prices rose slightly overnight as tight refined supplies persist in the US, and industrial action in Norway and a shutting down of a Libyan oil field continued supporting prices at recent highs. Brent crude finished 0.75% higher at USD 120.75 a barrel, and WTI rose 0.30% to USD 119.75 a barrel.
08-06-2022 05:20 GMT
by Jeffrey Halley
US dollar in choppy waters
US yields eased overnight, pushing the US dollar lower as the choppy range trading in currency markets continues this week. The dollar index finished just 0.08% lower at 102.33, although the yen weakness probably flattered the final result.
08-06-2022 05:11 GMT
by Jeffrey Halley
Target's soft outlook boosts equity markets
I warned yesterday that with a dearth of heavyweight data this week until Friday’s US CPI, we were likely to experience choppy trading, driven by swings in sentiment and headlines hitting the news ticker. Sure enough, that is what occurred overnight after US retailer, Target, gave a soft outlook and announced it had too much inventory and would cut prices to shift it.
If that headline had come out on another day or week, it may well have been subsumed
08-06-2022 04:52 GMT
by Jeffrey Halley
Oil
Initially crude prices were unable to hold onto early gains after the EIA short-term energy outlook trimmed their demand outlook for gasoline and distillates. Earlier, oil was rallying after a couple bullish calls from Goldman Sachs and Morgan Stanley.
07-06-2022 15:34 GMT
by Edward Moya
World Bank warns about stagflation
US stocks teetered as traders digested another profit warning from Target and a dire outlook from the World Bank. The story behind Target is not surprising to anyone as many retailers have been talking about persistent supply chain issues and as a shift in spending from goods to services.
07-06-2022 15:25 GMT
by Edward Moya
The Canadian dollar has extended its gains on Tuesday. USD/CAD is trading at 1.2545, down 0.26% on the day.
07-06-2022 11:29 GMT
by Kenneth Fisher
Dollar continues to pummel yen
The Japanese yen continues to lose ground. USD/JPY touched the 133 line earlier in the day, as the yen hit a 20-year low.
07-06-2022 10:43 GMT
by Kenneth Fisher
Oil struggling to hold above USD 120
Oil is continuing to struggle around USD 120 on Tuesday, with Brent and WTI very slightly lower. We've seen USD 120 broken on a few occasions over the last week but each time it's been quickly repelled in a sign of momentum starting to run a little thin.
07-06-2022 09:38 GMT
by Craig Erlam
Stock markets are back in the red on Tuesday, giving back the bulk of Monday's gains in a sign of ongoing uncertainty as to the direction of equity markets and the economy.
There is clearly appetite at these levels but that's not being backed up by momentum of any kind. Hardly surprising given the sheer uncertainty around inflation, interest rates and the economy.
07-06-2022 09:34 GMT
by Craig Erlam
The Australian dollar showed some bounce on Tuesday, courtesy of the RBA rate decision. AUD/USD produced a flash spike of 60 points after the move and touched a daily high of 0.7248, but was unable to consolidate. In the European session, the Aussie is trading at 0.7180, unchanged on the day.
RBA surprises with 50bp hike
The RBA had a huge surprise up its sleeve, as it delivered a 50bp rate hike, bringing the cash rate to 0.85%.
07-06-2022 07:53 GMT
by Kenneth Fisher
Oil is steady in Asia
Oil’s intraday gains overnight were pared back in New York as US yields and the US dollar climbed, leaving both Brent crude and WTI slightly lower for the session. Brent crude finished 1.05% lower at USD 119.95 a barrel, and WTI finished 1.10% lower at USD 119.00 a barrel.
07-06-2022 05:21 GMT
by Jeffrey Halley
The spike in US yields across the curve overnight unwound early US dollar selling, sending the dollar index to a modest 0.24% gain for the day, closing at 102.41. US dollar strength continues in Asia, perhaps helped by BOJ comments that now is not the time to consider an easy monetary policy exit.
07-06-2022 05:09 GMT
by Jeffrey Halley
China reopening boosts Chinese equities
Higher US bond yields took the edge of Wall Street overnight, which was happy to tail chase the China reopening trade higher, especially as US-listed China equities performed very well. That left Wall Street closing modestly higher.
07-06-2022 04:12 GMT
by Jeffrey Halley
US Treasury yields push above 3%
US yields were on the move last night, with the curve from the 5-year to 30-year tenor now all above three per cent. That was enough to crimp the perpetual FOMO bulls of the stock market, with Wall Street finishing just above flat, while the US dollar also booked some gains.
07-06-2022 03:50 GMT
by Jeffrey Halley
US stocks rallied early as improvement with China’s COVID situation, optimism that a strong labor market will help the US consumer handle the latest wave of inflation, and after a wrath of positive news.
With no US economic data releases scheduled for today and a quiet Fed due to the blackout period, US equities followed the rally that started in Asia. With the exception of the latest Musk/Twitter drama, it was mostly positive news from corporate America, which translated to a good start for sh
06-06-2022 16:46 GMT
by Edward Moya
Oil pares gains as China continues reopening
Oil prices are slipping a little on Monday after stalling just above USD 120 a barrel. Clearly, traders were not overly impressed by the OPEC+ output hike last week once the details of the deal were released.
06-06-2022 13:23 GMT
by Craig Erlam
Stock markets are off to a decent start this week with Europe posting almost 2% gains and the US not far behind.
Fluctuations in the markets are so frequent and large that I struggle to get particularly excited about days like today. On the face of it, these are very decent gains.
06-06-2022 13:21 GMT
by Craig Erlam
Can it break higher?
It can't be often that a Prime Minister is hours away from potentially being removed by their own party and yet the currency is rallying? Of course, the UK political scene has been far from normal for a number of years now.
You could read one of a number of things into today's moves.
06-06-2022 12:41 GMT
by Craig Erlam
The Australian dollar went on a wild ride late last week. AUD/USD jumped 1.27% on Thursday, only to cough up most of these gains on Friday. The Aussie is showing little movement today, as the markets eye the Reserve Bank of Australia rate decision on Tuesday.
RBA poised for back-to-back rate hikes
The RBA is widely expected to raise interest rates back-to-back, for the first time since 2013.
06-06-2022 12:20 GMT
by Kenneth Fisher