Trade trumps durable goods orders data
FX Trader, Loonieviews.net
The US dollar is bid. It stayed that way despite a mixed US durable goods orders report, a rise in US wholesale inventories for May and a big drop in MBA mortgage applications data. That’s because traders have trade on their minds. The headline durable goods number of -0.6% was better than the -1.0% that was forecast.
The White House appears to have backtracked on a plan to bar Chinese companies from investing in US technology firms, first reported on Sunday. They are now planning to use changes in the Committee of Foreign Investments in the United States to review investment decisions.
Wall Street liked the change in tone. The Dow Jones Industrial average opened above yesterday’s closing rate of 24,252.80 and climbed to 24,380.54 in early trading. The S&P 500 traded as high as 2732.91 after closing at 2717.07. Prices are still well below the month’s peak levels.
WTI oil prices jumped to $71.85/barrel after opening this morning at $71.15/barrel. Traders are expecting that today’s Energy Information Administration weekly crude oil stocks change data will report a similar drawdown as the American Petroleum Institute’s report showed yesterday afternoon, (-9.228 million barrels).
USDCAD retreated from its intraday peak of 1.3325 and is hovering around support in the 1.3280-90 area. Traders are patiently waiting to hear from Bank of Canada governor Stephen Poloz, who is holding a press conference after a speech in Victoria B.C. It is slated for 2000-2030 GMT.
EURUSD dipped to 1.1552 after opening in New York at 1.1648. The modest improvement in the headline durable goods number contributed to the slide. This morning’s break below the intraday uptrend at 1.1640 argues for a steeper drop to 1.1510 if 1.1580 gives way.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
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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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