NY Open: Wall Street wobbly at the open
FX Trader, Loonieviews.net
Summary: Equities are uncertain and forex is choppy at the New York open, as traders await Wednesday's Fed minutes release.
FX markets are choppy but well within recent ranges this morning. EUR, GBP, and CHF are higher while JPY and the commodity currency bloc are lower. EURUSD climbed from 1.1292 to 1.1320 as of 14:00 GMT even despite dovish comments from European Central Bank officials, hawkish comments from Cleveland Fed president Loretta Mester and talk of US auto sanctions against the EU coming down the pipe. Mester hedged herself, saying that rates may need to rise, but the Fed has time.
GBPUSD is higher, rising from 1.2890 to 1.2990, due in part, because of hopes that Wednesday’s Juncker/May meeting leads to concessions on the Irish border backstop. Stop losses were triggered on the break of 1.2950, opening the door to further gains to 1.3050.
USDCAD rallied from 1.3246 to 1.3279 because of GBPCAD demand and a drop in oil prices. WTI fell from $56.15 to $55.27 on profit taking and news that Iran’s oil exports rose in January.
Traders are reluctant to get too involved ahead of Wednesday’s release of the minutes from the January 30 Federal Open MarketCommittee meeting. The minutes will be parsed for insight into the Fed’s dovish flip when they removed the reference to “further gradual increases.”
Quarterly Outlook Q2 2022
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.
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