Dollar mixed ahead of US holiday
FX Trader, Loonieviews.net
Markets are noisy but not going anywhere. Wall Street opened in positive territory, but it remains to be seen if it will hold the gains ahead of tomorrow’s July 4th holiday. The US dollar can’t decide if it wants to move higher or lower. The Japanese yen strengthened slightly, and the Australian dollar weakened marginally while the rest of the G-10 majors are still hugging their New York opening levels.
US factory orders rose 0.4% in May, well above the 0.0% forecast. Wall Street may have been impressed with the gains, but FX traders couldn’t care less.
EURUSD is adrift. Positive sentiment after Germany’s Angela Merkel resolved a political crisis is offset by rising US growth and rate hike expectations.
Oil prices have collapsed from the European peak level of $75.22/b to $73.37/b. Saudi Arabia and Russia reaffirmed their promise to boost production by 1 million b/d to compensate for possible supply disruptions from Iran sanctions. In addition, the Trump administration has dialled back on threats to impose sanctions on all countries who import Iranian oil after November. They said they would review sanctions on a case-by-case basis.
FX and Wall Street trading will slow to a trickle in the afternoon as American’s head home to celebrate Independence Day, tomorrow.
Sterling couldn’t hang on to its post-UK construction PMI gains. Prices continue to be weighed down by lingering Brexit issues. GBPUSD is in a downtrend while prices are below 1.3180 with a break below 1.3100 extending losses to 1.3060.
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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