Market Update – May 23 – USD Dips, Stocks remain pressured

USD slipped again, Stocks had a torrid day on Friday, but recovered in final hour, Bear market talk dominates weekend press. Asian markets rise, after improvements in Shanghai covid news as isolation times are reduced, but record cases in Beijing.  Biden in Tokyo, offers olive branch to Kim, says US recession “not inevitable” and is willing to us force to defend Taiwan.  AUD & NZD rally on new Aussie PM.  

USDIndex down to 12-day low at 102.6 and 5th down day of last seven.
EquitiesUSA500 0.57 (0.005%) at 3901, US500FUTS at 3952 now.
Yields down 10-yr closed at 2.788%,  Trades up at 2.79%   
Oil & Gold both had positive sessions –  USOil rallied to test $110.00 earlier today from $103.50 on Thursday.  Gold holds $1850 today from lows at $1788 last week. 
Bitcoin rotates through $30K – Lagarde says crypto assets are ‘worth nothing.’
FX marketsEURUSD up from 1.0355 to 1.0600, parity calls falling. USDJPY under 128.00, and Cable back to 1.2570.  AUD again outperformed in Asia.  

OvernightJGBP House Prices  hotter than expected  & RBA’s Kent says the Bank’s estimate of the neutral rate is 2 to 3%.

Today – German Ifo Survey, Speeches from BOE’s Bailey ECB’s Villeroy & Fed’s Bostic

Biggest FX Mover @ (06:30 GMT) AUDUSD (+1.20%) Rallied from lows at 0.7000  on  Friday to 0.7125 today, following new labor PM’s electionMAs aligning higher, MACD signal line & histogram moving higher & testing 0 line, RSI 48 & rising, H1 ATR 0.346, Daily ATR 1.67.


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Stuart Cowell

Head Market Analyst

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