The forex space into today's European open sees a soft euro, comparative USD strength by default, and the CNY trading in a 6.844-6.86 range overnight, reports Saxo Bank Head of FX Strategy John Hardy.
"We also saw a pronounced spike in the Turkish lira, which pushed through the 5.40 area versus USD overnight," says Saxo's forex chief.
Down under, the AUD maintains a bid despite no real support from the Reserve Bank of Australia's meeting and statement.
In stocks, Saxo equities head Peter Garnry says the rebound in Chinese shares overnight does not shift the overall narrative with trade war fears and higher USD rates still dominant in APAC.
"The bears remain in control [of the Chinese stock market]," Garnry concludes.
In commodities, Saxo head of Commodity Strategy OIe Hansen reports that the strike action threatened at the world's largest copper mine in Chile may have been averted. "BHP Billiton has apparently blinked," Hansen says, adding that a five-day mediation session is set to follow.
Finally, Saxo technical analyst Kim Cramer Larsson says that the S&P 500 appears poised for a move on its all-time high.
For more on stocks, FX, commodities, and technical analysis, watch today's Morning Call in full.
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.