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RBNZ hikes by 50-bps The Reserve Bank of New Zealand has raised policy rates by 0.50% to 2.0% this morning, with Governor Orr setting a hawkish tone in the press conference afterwards. In the statement itself, the RBNZ’s “least worst choices” policy seemed to imply that although external risks remained, the domestic economy was strong and could tolerate tighter monetary conditions.

25-05-2022 04:32 GMT by Jeffrey Halley

Japanese yen rises on strong BoJ CPI

After several days of trading sideways, the yen has posted strong gains on Tuesday. In the North American session, USD/JPY is trading at 126.58, down 1.02% on the day.

24-05-2022 13:12 GMT by Kenneth Fisher

Oil rangebound, gold shines

Oil looking for direction Oil prices remain directionless as energy traders try to assess how significant the deceleration in economic activity will be for the short-term crude demand outlook. The oil market remains tight but the COVID situation in China points to a gradual pickup in demand and that might keep this market rangebound a while longer. Saudi Prince Faisal bin Farhan noted that the kingdom has done what it can for global oil markets and that should mean production increases will rema

24-05-2022 12:11 GMT by Edward Moya

Oh Snap, wrath of US data misses, stock selling resumes, bitcoin in danger

US stocks are quickly giving up yesterday’s gains after a wrath of US economic data signaled broad weakness across large parts of the economy. Everything is weakening at a faster clip than anyone expected and that does not bode well for the US consumer and for short-term outlooks for equities. The dollar is sliding as Treasury yields plunge as risk aversion returns following a gloomy outlook from snap and disappointing US PMI and housing data. Snap slides Snap shares plunged after the social

24-05-2022 12:07 GMT by Edward Moya

USD/JPY - Head and shoulders breakout?

Major correction on the cards? The rally in USDJPY from early March to early May was huge, driven by a combination of a soaring greenback and a BoJ determined to support its yield curve control policy tool. But the last couple of weeks have brought some relief in the pair, driven primarily by the dollar paring gains against the broader market. And the pair may have just broken below an interesting technical support level that could signal a more significant correction. A head and shoulders a

24-05-2022 11:34 GMT by Craig Erlam

EUR/GBP - Further gains to come?

Hawkish ECB boost the single currency The euro has caught a strong bid against the pound in recent days on the back of some very hawkish commentary from the ECB and poor economic data in the UK. The ECB will become the latest central bank to concede on the inflation argument and raise rates in July and September, as per President Christine Lagarde's blog, although some support an even more aggressive approach. That's boosted the euro at a time when the UK economy is facing the prospect of a r

24-05-2022 11:05 GMT by Craig Erlam

Euro rises to 1-month high on Lagarde

The euro has extended its gains on Tuesday. EUR/USD has broken above the 1.07 line for the first time since April 26th. ECB's Lagarde sends euro soaring The euro was red hot on Monday, as EUR/USD jumped 1.29%, its best one-day showing this year.

24-05-2022 10:25 GMT by Kenneth Fisher

Oil drifting, gold edges higher

Oil rally stalls Oil prices are relatively flat on Tuesday as global economic fears and the prospect of tighter restrictions in Beijing take some of the heat out of the rally. Brent and WTI are trading right at the upper end of the range they've been within the last couple of months, with tight supplies, easing restrictions in Shanghai and a potential EU ban on Russian oil imports driving the price higher. As has been the case for months now, there are so many countering forces in the market tha

24-05-2022 07:42 GMT by Craig Erlam

Growth concerns weigh once again

Stock markets are back in the red on Tuesday, with US futures also pointing to a negative start on Wall Street in a couple of hours. These wild swings from one day to the next have become the norm as investors try to pick the bottom in the markets only to be dealt another blow from one negative headline or another. And they continue to come thick and fast, leaving equity markets vulnerable to further drops. Pessimistic Chinese growth forecasts and a profit and revenue warning from Snap appear to

24-05-2022 07:30 GMT by Craig Erlam

New Zealand dollar rally fizzles

The New Zealand dollar has reversed directions after a solid 3-day rally. In the European session, NZD/USD is trading at 0.6432, down 0.55% on the day. China jitters weigh on NZ dollar New Zealand's number one trading partner is China, and it's no exaggeration to say that when China sneezes, New Zealand catches a cold.

24-05-2022 07:00 GMT by Kenneth Fisher

Oil trades sideways, gold edges higher

Oil markets continue to slumber Oil prices moved sideways once again overnight, trading in relatively narrow ranges as China growth fears cap the upside of prices, while the Ukraine conflict and the refined petroleum product supply squeeze in the US support the downside. Brent crude finished 0.70% higher overnight at USD 113.35 a barrel, with WTI unchanged at USD 110.55 a barrel. In Asia, downgraded China GDP growth forecasts and increasing worries about wider virus restrictions in Beijing has p

24-05-2022 05:12 GMT by Jeffrey Halley

US dollar retreat accelerates

Hawkish Lagarde sends dollar lower The US dollar slumped overnight, losing ground against both the G-10 and EM space. That contrasted with a rise in US yields, but equities, bonds and currencies seem to be running their own separate races now.

24-05-2022 05:03 GMT by Jeffrey Halley

China slowdown weighs on Asian markets

Asian equities ease once again on China worries It was another rollercoaster session on Wall Street, with equities rallying powerfully as JP Morgan raised its income outlook and was upbeat on the US economy. The S&P 500 jumped by 1.86%, the Nasdaq rallied by 1.59%, while the Dow Jones leapt 2.0% higher.

24-05-2022 04:23 GMT by Jeffrey Halley

Snap, crackle, pop

Snap, Crackle, Pop may bring back memories of breakfast cereals, but for Snap Inc their quarterly guidance was more of a dog’s breakfast. Snap’s stock price went snap, crackle, pop, as it fell by over 30% in extended trading after the CEO, in a note to employees, said it would miss quarterly guidance on growth and revenues.

24-05-2022 04:06 GMT by Jeffrey Halley

EUR/USD - Bullish breakouts coming?

Lagarde comments trigger latest rally The euro surged at the start of the week after ECB President Christine Lagarde laid out a very clear path for tightening in the coming months. This is extremely out of character for Lagarde which perhaps highlights the urgency with which the ECB is now approaching the inflation problem. From intentional ambiguity to a very specific path - a rate hike in July and an end to negative rates by the end of the third quarter - it's a huge change from how the cen

23-05-2022 16:57 GMT by Craig Erlam

US Close - Stocks rally on Biden's tariff comment, Euro rallies on Lagarde Hawkishness, Oil choppy, Gold rallies, Bitcoin struggles

US stocks are rallying over optimism that President Biden could be positioning for a major de-escalation in the US-China trade war and over selling exhaustion. After eight weeks of selling pressure for the Dow and a seven-week losing streak for both the S&P 500 and Nasdaq, a rebound was long overdue. Many are rationalizing today’s rebound with the logic that much more downside would only be warranted if a recession was likely to happen early next year and that won’t be determined for a few more

23-05-2022 16:08 GMT by Edward Moya

Oil steady, gold

Economic fears slow rally in oil Oil prices are only marginally higher at the start of the week as Europe's failure to agree on a ban on Russian oil and economic fears offset the Shanghai reopening. Hungary is still holding out against the deal but the bloc is confident that it will get over the line.

23-05-2022 13:22 GMT by Craig Erlam

Lagarde signals summer hikes

The week has started on a positive note, with investors having another stab at buying the dip following a further wave of selling in recent sessions. The S&P 500 joining the Nasdaq in bear market territory naturally has everyone wondering whether the market has bottomed. It's not been the best year for dip buyers but equity markets are now trading at such a discount from their highs that it's natural for investors to be asking the question. The economic headwinds remain a major concern though an

23-05-2022 13:12 GMT by Craig Erlam

Aussie jumps on US recession jitters

The Australian dollar has started off the week with strong gains. AUD/USD is up 0.76%, trading at the 71 line. Australia's election was a tightly contested affair, and in the end, Labour's Anthony Albanese emerged the winner and replaces Scott Morrison as prime minister.

23-05-2022 12:31 GMT by Kenneth Fisher

Euro surges to 1-month high

The euro has jumped out of the gates on Monday with sharp gains. In the European session, EUR/USD is trading at 1.0673, up 1.12% on the day. Euro rebounds The euro looked hopelessly lost earlier this month, when it dropped to 1.0349, its lowest level since January 2017.

23-05-2022 07:25 GMT by Kenneth Fisher

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