Market Update – May 25 – Stocks Volatile, USD stable, NZD Surges

USD slipped again, but is  stable today (USDIndex 102.00), weak global PMI data & US data missed and Powell added to rate hike expectations meant Stocks had another volatile session (SNAP lost -43%, and other big tech stocks hit NASDAQ -2.35%) Yields down as treasuries firmed. Asian markets mixed (Nikkei -0.26%) RBNZ raised by 50bps & Gov. Orr had more hawkish outlook than expected (rates to 4%?) NZD surged. NK tested a range of missiles as Biden left Asia, Zelenskiy says Bombas situation critical,

USDIndex down to 101.64 yesterday back to 102.00 
EquitiesUSA500 -32 (0.81%) at 3941, US500FUTS at 3962 now. Snap lead some huge declines .
Yields down, 10-yr closed at 2.76%, now 2.77%   
Oil & Gold both had positive sessions – USOil back up  to test $111 Gold holds $1860 today, down from $1870.  
Bitcoin rotates through $30K – but under today at 29.8k.
FX marketsEURUSD up to test 1.0750, holds 1.0700, USDJPY down to 127.00, Cable up to 1.2540.  NZD off 5-week low at 0.6515

OvernightHawkish RBNZ, German Gfk missed, French Consumer Confidence missed.

Today – US Durable Goods, FOMC Minutes, ECB Financial Stability Review, Speeches from ECB’s Lagarde, Lane, Panetta, Fed’s Brainard

Biggest FX Mover @ (06:30 GMT) EURNZD (-1.02%) Tanked from 1.6650 to 1.6425 on Hawkish RBNZ. MAs aligning lower, MACD histogram turned negative crashing signal line  RSI 29, OS & falling, H1 ATR 0.0043, Daily ATR 0.01413.

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Stuart Cowell

Head Market Analyst

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