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Oil drifting, gold rises on recession fears

Oil flat but risks remain to the upside It's been another volatile week of trade in oil but Brent and WTI are set to end it roughly where they started. They're seeing small gains on the day but price action remains very choppy.

20-05-2022 08:40 GMT by Craig Erlam

Recovering into the weekend

Equity markets are back in positive territory on Friday but I'm struggling to get too excited by the moves we see going into the weekend. The rebound may partly reflect the scale of the declines we've seen in the previous couple of sessions, while the cut to the five-year loan prime rate in China may also be giving global markets a bit of a lift. But ultimately, very little has changed and I expect that will continue to hold these markets back. The rate cut announced by the PBOC is obviously goo

20-05-2022 08:34 GMT by Craig Erlam

Is the yen making a comeback?

After a brutal slide over the past two months, the Japanese yen is showing some bounce in its step. Japanese yen bounces back The yen registered 10 straight losing weeks but finally ended that nasty streak last week, with gains of about one per cent. Barring any surprises today, the yen will repeat with another strong week.

20-05-2022 07:56 GMT by Kenneth Fisher

Pound yawns on mixed retail sales

The British pound is drifting on Friday, after showing unusually strong volatility this week. The pound rebounded on Thursday, racking up gains of 1.06% and briefly breaking above the symbolic 1.25 line. UK retail sales showed a strong gain in April, with a gain of 1.4% MoM.

20-05-2022 05:00 GMT by Kenneth Fisher

US Close - Stocks near bear market, Oil higher on supply concerns, Gold pops, Bitcoin stabilizes

US stocks edged lower as Wall Street became more focused over a deteriorating growth outlook that could see stubbornly high pricing pressures for the Fed into a much more aggressive tightening cycle. It doesn’t seem like we will see a deceleration in pricing pressures and that has many traders worried that the Fed will send the economy into a recession. Right now markets are functioning properly but if we see another 5% decline with stocks, credit conditions will worsen and that could provide t

19-05-2022 15:52 GMT by Edward Moya

Gold - Back in favour?

Or just a blip? Gold has very much fallen out of favour over the last month as it fell 10% on the back of coming within a whisker of $2,000. But has something changed? We've seen plenty of risk aversion in the markets over the last 24 hours, with stock markets falling heavily, and rather than being particularly supportive for the dollar, it's gold that has performed well which hasn't really been the case in recent weeks. Perhaps that's because higher inflation and therefore interest rate expe

19-05-2022 11:26 GMT by Craig Erlam

New Zealand dollar roars

The US dollar is in retreat on Thursday, and the New Zealand dollar has taken full advantage. NZD/USD has surged 1.57% and is trading at 0.6390 in the North American session. The New Zealand government released its annual budget today and announced measures aimed at tackling the cost of living crisis.

19-05-2022 10:52 GMT by Kenneth Fisher

Oil downturn continues, gold climbs

Oil slips as economic concerns weigh Those economic concerns are filtering through to the oil market which is seeing the third day of losses, down a little more than 1% today. We were bound to see some form of demand destruction if households continued to be squeezed from every angle and it seems we may be seeing that expectation weigh a little as we move into the end of the week. Meanwhile, China is reportedly looking to take advantage of discounted Russian crude to top up its reserves in a mov

19-05-2022 09:23 GMT by Craig Erlam

Another turbulent day

It's been another turbulent session after stock markets turned sharply lower on Wednesday as investors fret over the outlook for the economy this year. Results from Walmart and Target this week have brought into sharp focus the plight facing companies and consumers as inflation begins to bite. And that's in a country that is still performing relatively strongly with a consumer that still has plenty of savings built up over the last couple of years.

19-05-2022 09:20 GMT by Craig Erlam

Pound stems bleeding, retail sales next

The British pound has reversed directions on Thursday, after sliding 1.22% a day earlier. GBP/USD is trading at 1.2402 in the European session, up 0.50% on the day.

19-05-2022 06:26 GMT by Kenneth Fisher

Aussie rebounds on jobs report

Unemployment falls to record low The Australian dollar has rebounded on Thursday. AUD/USD is trading at 0.6980 in the European session, up 0.38% on the day. Australia's April employment report was a further confirmation that the labour market remains tight.

19-05-2022 05:22 GMT by Kenneth Fisher

US Close - Stocks Crumble, Oil lower on demand concerns, Gold holding up, Bitcoin lower

US stocks are crumbling after Wall Street worries about economic growth after hearing a chorus of concerns of higher prices that won’t be easing anytime soon. The strength of the consumer will be tested as both Walmart and Target signal rising pricing pressures are not easing. The Dow Jones Industrial suffered its worst loss since 2020 as investors doubt the Fed will be able to deliver a soft landing as the inflation outlook might warrant much more aggressive tightening of monetary policy. The

18-05-2022 15:45 GMT by Edward Moya

GBP/USD - Can it Break major support?

Possible divergences appearing The pound has come under heavy pressure recently, particularly against the dollar which has been performing well against the broader market. While the BoE is poised to continue its run of a rate hike at every meeting, making it one of the more hawkish central banks, the moves in the pound are also a reflection of the challenges facing the UK economy, which the central bank believes is heading for double-digit inflation and a recession. The question is how far th

18-05-2022 12:00 GMT by Craig Erlam

Market Insights Podcast (Episode 330)

OANDA Senior Market Analyst Craig Erlam reviews the latest market news with Jonny Hart. They discuss the latest inflation data, Jerome Powell's comments and oil.

18-05-2022 11:31 GMT by Craig Erlam

UK inflation soars to 9%

Pound slides after CPI report The British pound has taken a tumble after April CPI jumped to 9.0% YoY, up sharply from 7.0% in March. GBP/USD has fallen 100 points today and is trading at 1.2390 in North American trade. UK inflation continues to run at a 40- year high, and the cost of living crisis is undoubtedly keeping Finance Minister Sunak and BoE Governor Bailey awake at night.

18-05-2022 10:24 GMT by Kenneth Fisher

Oil rises as China reopens, gold unsteady

Oil higher as China starts reopening Oil prices are on the rise again as Shanghai takes a big step towards reopening following three days of no new cases in the broader community. Restrictions have been tight in many cities across China which have helped keep a lid on oil prices in this very tight market.

18-05-2022 09:31 GMT by Craig Erlam

Inflation hits 40-year high

European equity markets are a little flat on Wednesday, with inflation data this morning once again offering a reminder of the struggles that lie ahead. Not that we need reminding given all of the data we've seen recently. And then there are the gloomy forecasts from central banks, with even the Fed now targeting a softish landing which feels very much like the stage before a mild recession.

18-05-2022 09:26 GMT by Craig Erlam

Australian dollar dips after WPI

After three successive winning sessions, the Australian dollar has reversed directions on Wednesday. In the European session, AUD/USD is trading slightly above the symbolic 70 level. Wage growth ticks higher It wasn't all that long ago that RBA Governor Lowe would reiterate that there would be no rate hikes until wage growth hit 3%.

18-05-2022 07:58 GMT by Kenneth Fisher

Oil falls on Venezuala and EU, gold dips

Venezuela/Europe send oil lower Overnight, oil prices touched multi-week highs until the US announced it was starting a process, potentially leading to an easing of sanctions on Venezuela. That immediately saw oil reverse all its impressive intraday gains and both Brent crude and WTI finished slightly lower on the day.

18-05-2022 04:51 GMT by Jeffrey Halley

US dollar falls as risk sentiment rises

US dollar retreats on higher risk appetite The US dollar weakened overnight despite US yields moving higher and hawkish Fed officials. Like equity markets, currency markets concentrated on positive US data, and a fall in oil prices which lifted risk-seeking sentiment, although I believe this is all part of a bull market correction.

18-05-2022 04:44 GMT by Jeffrey Halley

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