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The New Zealand dollar has extended its losses on Thursday and dropped below the 69 line. In the North American session, NZD/USD is trading at 0.6887, down 0.42% on the day. Fed puts 0.50% hikes on the table The hawkishness of the FOMC minutes was not a surprise, given that the markets had heard this from Fed members George and Brainard a day earlier.

07-04-2022 13:06 GMT by Kenneth Fisher

Oil falls below 100, gold drifting

Oil below USD 100 after IEA and EIA Oil prices are slipping again today after falling more than 5% on Wednesday. The combination of the IEA reserve release and EIA inventory data sent prices tumbling yesterday and suddenly a world of double-figure oil looks possible. That wouldn't have been something to celebrate only a few months ago but a lot has changed since then.

07-04-2022 12:59 GMT by Craig Erlam

Fed raises recession risks

Equity markets fall on hawkish Fed Stock markets are back in the red on Thursday as further hawkish commentary from the Fed increases the odds of a recession over the next couple of years. The soft landing that the Fed so desires is easier said than done, especially in an environment when inflation is so high and energy prices are through the roof. And when you consider the kind of tightening that's being proposed, the economy is going to have to display incredible resilience to weather the stor

07-04-2022 12:50 GMT by Craig Erlam

AUD falls as trade balance shrinks

The Australian dollar has extended its losses and has fallen below the symbolic 75 line. In the North American session, AUD/USD is trading at 0.7475, down 0.45% on the day. Central bank announcements have been sending the Australian dollar up and down this week like a yo-yo.

07-04-2022 09:55 GMT by Kenneth Fisher

Euro edges lower on French nerves

The euro is down slightly on Thursday and remains under pressure. EUR/USD hasn't posted a winning session in the month of April and fell to 1.0874 yesterday, which was a one-month low.

07-04-2022 05:02 GMT by Kenneth Fisher

Oil slips on SPR, gold stays sideways

Oil prices fall on IEA release Oil prices dipped overnight after the IEA announced a globally coordinated reserve release of 120 million barrels, which is actually a net 60 million release when the US contribution is stripped out. Brent crude and WTI fell by over 4.0% overnight, assisted by higher than expected US Crude Inventories, to USD 101.70 and USD 96.40 respectively. With the IEA release and the US SPR releases now priced in, Asia has walked in and bought the dips in both contracts t

07-04-2022 03:59 GMT by Jeffrey Halley

Wall Street retreat spills into Asia

Hawkish Fed minutes weighs on stock markets Asian equity markets are lower today as it follows Wall Street south, digests the implications of a faster tightening Federal Reserve, and casts a nervous eye at China and its virus situation. Overnight, the FOMC Minutes confirmed the hawkish comments of Lael Brainard the day before, causing more pain on Wall Street. The S&P 500 fell by 0.97%, the Nasdaq tumbled by 2.22%, while the Down Jones eased 0.42% lower.

07-04-2022 03:52 GMT by Jeffrey Halley

Fed's tightening grip unnerves equities

Fed to accelerate balance sheet reduction The FOMC minutes were released overnight and signalled a faster pace of balance sheet runoff then on previous occasions, targeting USD 95 billion per month from September, easing into the process from next month. The minutes also suggested that some 50 bp Fed Funds hikes were on the cards and expect that to happen from next month.

07-04-2022 02:19 GMT by Jeffrey Halley

Bitcoin - A false breakout?

Can it still capitalise on the breakout? Bitcoin appeared to have made a very bullish move last week when it finally broke above $45,500 but since then, it's all been downhill. Sentiment in the broader markets has dipped in recent days and bitcoin has suffered as a result. Even prior to this, it failed to capitalise on the initial breakout which may have been a sign of what was to come. While the trend in the longer term may still be positive, the current environment isn't making life easy.

06-04-2022 17:10 GMT by Craig Erlam

Oil slumps as more short-term relief expected, gold struggles

Oil prices fall on EIA, SPR Crude prices declined after both the EIA report showed US stockpiles posted a surprise build and on reports that IEA nations will deliver an additional 60 million barrels from reserves. Oil might be down today as oil-consuming nations show they are aggressively tapping their emergency stockpiles, but that won’t last as supply constraints will remain given the production outlook for most OPEC+ nations. Pockets of severe supply disruptions for gasoline, diesel, and je

06-04-2022 15:39 GMT by Edward Moya

Stocks extend post FOMC minutes, bitcoin lower

US stocks extended losses after the Fed minutes showed they are ready to deliver super-sized hikes and reduce its massive bond holdings at a maximum pace of USD 95 billion a month. Everyone knew the Fed was telegraphing the balance sheet reduction was coming and expectations were for the pace to be around USD 100 billion, so the USD 95 billion amount was initially viewed as dovish. The Fed noted that they preferred to deliver a half-point increase at the March meeting, but the uncertainty from

06-04-2022 15:34 GMT by Edward Moya

Oil falls on SPR, gold steady

Oil slips as IEA releases details of SPR release Oil prices are edging lower again on Wednesday as the IEA confirms the details of the coordinated reserve release that will aim to stabilise crude markets. The 120 million barrel release includes 60 million from the US which is part of the 180 million it announced last week.

06-04-2022 12:50 GMT by Craig Erlam

Stocks hit ahead of Fed minutes

Stock markets are taking a bit of a beating on Wednesday as investors start to fret again about the pace of monetary tightening. Fed mulling point hikes Cracks are starting to appear as it becomes clear that the central bank has little choice but to tackle inflation head-on, no matter the cost, after arriving late to the party with its first hike last month. It took a long time for the central bank to acknowledge the problem and much longer again before it eventually started raising rates and

06-04-2022 12:43 GMT by Craig Erlam

Canada dollar as Ivey PMI jumps

The Canadian dollar is steady today, trading at the 1.25 line. Canada's Ivey PMI for March was up sharply, rising from 60.6 to 74.2. This crushed the consensus estimate of 60.0, the highest level in more than 11 years.

06-04-2022 12:35 GMT by Kenneth Fisher

Euro stops nasty slide

The euro is flat on Wednesday, putting the brakes on a nasty four-day slide. EUR/USD dipped below the 1.09 line in the Asian session before recovering. ECB's Panetta warns about stagflation Inflation has been skyrocketing in the US and UK, giving the Fed and BoE plenty of sleepless nights.

06-04-2022 10:40 GMT by Kenneth Fisher

Aussie takes a breath after wild ride

The Australian dollar is drifting on Wednesday, after taking quite the ride a day earlier, courtesy of the RBA rate decision. RBA hawkishness sends Aussie soaring AUD/USD rocketed some 200 points at one stage on Tuesday, in response to the RBA rate statement at its policy meeting. The Bank held rates at an ultra-low 0.10%, where they have been pegged since November 2020.

06-04-2022 06:58 GMT by Kenneth Fisher

Oil edges higher, gold range trades

Oil prices are steady Oil prices eased overnight in the face of a stronger US dollar, a slow news ticker from Eastern Europe, and continuing concerns over China’s growth as the Shanghai lockdown continued. Brent crude fell by 2.15% to USD 104.60 a barrel, with WTI falling 2.45% to USD 101.15 a barrel.

06-04-2022 04:26 GMT by Jeffrey Halley

Higher US yields lift the dollar

Brainard's hawkish comments buoy the US dollar The US dollar rose overnight as US long-dated yields spiked higher after very hawkish comments from the Fed’s Brainard, previously one of its most dovish officials. A robust ISM Non-Manufacturing PMI and ISM Non-Manufacturing employment, new orders and business activity served as an additional tailwind.

06-04-2022 04:14 GMT by Jeffrey Halley

Asian equities slump

Brainard's tightening comments dampen Asian markets Hawkish comments around the Fed’s balance sheet runoff and 0.50% rate hikes threw a bucket of cold reality onto equity markets overnight. Fed Governor Lael Brainard, one of the most dovish FOMC members, said that a reduction of the Federal Reserve’s balance sheet, so-called quantitative tightening, could begin as early as next month and at a much faster pace than previous efforts.

06-04-2022 03:59 GMT by Jeffrey Halley

Left Brainard, right Brainard

Brainard talks hawkish The overnight session was dominated by comments from Fed Governor Lael Brainard, who set the cat amongst the pigeons of the equity and bond markets with some very hawkish comments. Ms Brainard suggested that a reduction of the Federal Reserve’s balance sheet, so-called quantitative tightening, could begin as early as next month and at a much faster pace than previous efforts.

06-04-2022 03:43 GMT by Jeffrey Halley

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