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.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.