Posted at 21 May 2022 / Categories Market Roundups
Looking Ahead - Economic Data (GMT)
•EU May Consumer Confidence -21.1,-21.5 forecast,-22.0 previous
•U.S. Baker Hughes Oil Rig Count 576,563 previous
•U.S. Baker Hughes Total Rig Count 728,714 previous
Looking Ahead - Economic Data (GMT)
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Looking Ahead - Economic events and other releases (GMT)
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EUR/USD: The euro declined against dollar on Friday as volatility in global equity markets bolstered demand for the safe-have dollar. The dollar rose 0.3% against the euro as U.S. stocks tumbled on Friday, putting the S&P 500 Index on the verge of confirming it has been in a bear market since hitting a record high in January. The U.S. currency has been supported in recent months by a flight to safety by investors, amid a rout across markets due to fears of the impact of soaring inflation, a hawkish Federal Reserve and the Russia-Ukraine conflict. Immediate resistance can be seen at 1.0612(38.2%fib), an upside break can trigger rise towards 1.0634 (30DMA).On the downside, immediate support is seen at 1.0550 (14DMA), a break below could take the pair towards 1.0499(23.6%fib).
GBP/USD: Britain’s pound strengthened against the dollar on Friday as upbeat UK retail sales data boosted pound. British retail sales jumped unexpectedly in April as shoppers loaded up on alcohol and tobacco, likely a blip in an otherwise bleak trend that has driven consumer confidence to all-time lows amid a worsening cost-of-living crunch.Retail sales volumes rose 1.4% month on month after a 1.2% drop in March, the Office for National Statistics said. Economists polled had expected a 0.2% monthly fall. Immediate resistance can be seen at 1.2552(50%fib),an upside break can trigger rise towards 1.2630(30DMA).On the downside, immediate support is seen at 1.2410 (38.2%fib), a break below could take the pair towards 1.2255(23.6%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Friday, pulling back from an earlier two-week high, as volatility in global equity markets bolstered demand for the safe-haven greenback. The loonie was trading 0.1% lower at 1.2832 to the greenback, or 77.93 U.S. cents, after touching its strongest since May 5 at 1.2777. The price of oil, one of Canada's major exports, settled 0.9% higher at $113.23 a barrel as a planned European Union ban on Russian oil countered growth concerns. Immediate resistance can be seen at 1.2865 (38.2%fib), an upside break can trigger rise towards 1.2962 (23.6%fib).On the downside, immediate support is seen at 1.2788 (50%fib), a break below could take the pair towards 1.2712 (61.8%fib).
USD/JPY: The dollar edged higher against the Japanese yen on Friday as investor unease about Federal Reserve policy tightening to clamp down on inflation kindled fears of a recession. The dollar has been supported in recent months by a flight to safety amid a rout across markets due to fears of soaring inflation, a hawkish Fed and the war in Ukraine. That rally, however, sputtered this week as increased volatility in global financial markets, coupled with the lofty levels the dollar had scaled in recent months, led investors to reach for the safety of the yen and the Swiss franc. Strong resistance can be seen at 128.73(38.2%fib), an upside break can trigger rise towards 130.33(23.6%fib).On the downside, immediate support is seen at 127.42(50%fib), a break below could take the pair towards 126.62(Lower BB).
European stocks rebounded on Friday after China cut its key lending rates by a record quantum to spur growth.
UK's benchmark FTSE 100 closed up by 1.19 percent, Germany's Dax ended up by 0.72 percent, France’s CAC finished the day up by 0.20 percent.
Wall Street ended mixed on Friday after a volatile session that saw Tesla slump and other growth stocks also lose ground.
Dow Jones closed up by 0.03% percent, S&P 500 closed up by 0.01 % percent, Nasdaq settled down by 0.30% percent.
U.S. Treasury yields fell for a third straight session on Friday, as investors remained concerned about growing signs of an economic slowdown even as the Federal Reserve vowed to stay aggressive with monetary tightening to stamp out persistently high inflation.
U.S. 10-year yield slipped 2.2 basis points to 2.833%. The 30-year yield fell as well, dipping 2.4 bps to 3.041% . On the front end of the curve, U.S. two-year yields were little changed at 2.613%.
Gold edged up on Friday, heading for its first week of gains in five on persistent worries over economic growth and a weekly decline in the dollar.
U.S. gold futures settled up 0.1% at $1,842.10.Bullion, which hit a 3-1/2-month low of $1,786.60 on Monday ,has gained about 1.8% so far this week.
Oil prices settled slightly higher on Friday as a planned European Union ban on Russian oil and easing of COVID-19 lockdowns in China countered concerns that slowing economic growth will hurt demand.
Brent futures for July delivery rose 51 cents, or 0.5%, to $112.55 a barrel. U.S. West Texas Intermediate (WTI) crude for June rose $1.02, or 0.9%, to settle at $113.23 on its on its last day as the front-month.