- Prior was +1.10
- Output +18.8 vs +10.8 prior
Articles
Dallas Fed manufacturing index -7.3 vs +1.10 prior
231445 May 31, 2022 22:33 Forexlive Latest News Market News
- Dallas Fed regional manufacturing data
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Silver Price Analysis: XAG/USD rebounds from earlier sub-$21.50 lows, still weighed by higher buck/US yields
231444 May 31, 2022 22:17 FXStreet Market News
- Silver prices are under pressure on Tuesday, though have recovered substantially from earlier session lows.
- XAG/USD dipped as low as under $21.50 before recovering closer to $22.00 amid the stronger dollar/higher US yields.
Though spot silver (XAG/USD) prices are still trading lower by about 0.3% on the day, they have erased the lion’s share of earlier losses and are back to trading in the $21.90s per troy ounce, more than 2.0% above earlier session lows under $21.50. That means spot prices continue to trade relatively close to their 21DMA (in the $21.80s) and only a little over 2.0% below last week’s highs near $22.50.
Month-end strength in the US dollar plus a month-end rebound in US bond yields, which some say is also being boosted by hawkish remarks from Fed Board of Governors member Christopher Waller on Monday, are the primary factors weighing on silver and precious metals more broadly on Tuesday. Recent US data in the form of housing figures, Chicago PMI and CB Consumer Conference numbers haven’t factored much into the equation.
Silver continues to trade about 7.0% above mid-month lows in the mid-$20s and, as Wall Street chatter about US inflation/Fed hawkishness having peaked builds, the prospects for a more lasting rebound are improving. But, for now, price action seems content in remaining glued to the 21DMA and ahead of key US data releases later in the week, this is likely to remain the case.
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EUR/USD: Scope to reach 1.10 in the medium-term – Scotiabank
231443 May 31, 2022 22:09 FXStreet Market News
Today’s EUR decline may merely be corrective in nature as it nears the 1.08 level. Economists at Scotiabank believe that the EUR/USD pair could climb as high as 1.10 in the medium-term.
Some market participants are betting on a 50bps hike this year
“The EUR is still maintaining a higher highs and higher lows pattern that supports a breakthrough 1.08 in the near-term. A stretch of trading where it fails to break through the figure opens up a correction, however.”
“Continued inflation beats and a resilient Eurozone economy in the face of high energy prices may continue to bolster 50bps hike bets. This could see the EUR strengthen to 1.10 in the medium-term, something that seemed very unlikely a few weeks ago.”
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US: CB Consumer Confidence falls to 106.4 versus expected drop to 103.9
231442 May 31, 2022 22:05 FXStreet Market News
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USD/CAD: Break under mid-1.26s to open the door to a drop back toward 1.2405 – Scotiabank
231441 May 31, 2022 22:05 FXStreet Market News
The CAD has backed off the 1.2660 area that provided support for the USD on Monday. Analysts at Scotiabank highlight the key levels to watch regarding the USD/CAD pair.
Resistance stretches from 1.2690 to 1.2715
“We spot support intraday at 1.2655/60 and resistance at 1.2690, although resistance likely extends up to the 1.2715 area, the early May low.”
“USD weakness through the mid-1.26s target losses to the mid-1.25s and potentially opens the door to a drop back to the Apr low at 1.2405.”
Full Article
US consumer confidence 106.4 vs 103.98 expected
231439 May 31, 2022 22:02 Forexlive Latest News Market News
- Consumer confidence from The Conference Board
- Prior was 107.3 (revised to 108.6)
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ECB’s de Cos: If inflationary pressures persist, they are more likely to feed into wage negotiations
231438 May 31, 2022 22:02 FXStreet Market News
European Central Bank (ECB) Governing Council member Pablo Hernandez de Cos said on Monday that if inflationary pressures persist, they are likely to feed into wage negotiations and trigger second-round and indirect effects on inflation, reported Reuters. These second-round effects have not yet materialised, with the latest data on wage settlements pointing to employees bearing a considerable loss of purchasing power in recent quarters.
The natural rate of interest is relatively low in the euro area, de Cos continued, hovering around or slightly above 1.0% and this would suggest that, until these levels are reached, the ECB’s monetary policy stance will continue to be expansionary, at least from a long-term perspective.
In order for us to adopt a gradual normalisation approach, it is essential that inflation expectations remain anchored at the 2.0% target, he added. Moreover, it is not optimal to pre-commit to any specific interest rate path, much less in the current uncertain context.
Full Article
USD/JPY Price Analysis: Spikes to a near two-week high, seems poised to appreciate further
231437 May 31, 2022 22:02 FXStreet Market News
- USD/JPY caught aggressive bids on Tuesday and shot to a near two-week high.
- Resurgent USD demand was seen as a key factor that provided a strong boost.
- The set-up favours bullish traders and supports prospects for additional gains.
The USD/JPY pair built on the previous day’s positive move and gained strong follow-through traction for the second successive day on Tuesday. The momentum pushed spot prices to a nearly two-week high, around the 128.70-128.75 region during the early North American session and was exclusively sponsored by resurgent US dollar demand.
Fed Governor Christopher Waller on Monday backed a 50 bps rate hike for several meetings until inflation eases back toward the central bank’s goal. The remarks triggered a sharp spike in the US Treasury bond yields, which, in turn, assisted the USD to make a solid comeback from over a one-month low touched the previous day.
From a technical perspective, the strong move up confirmed a breakout through a multi-day-old trading range resistance. The said barrier coincided with the top end of a descending channel extending from a two-decade high touched earlier this month and the 38.2% Fibonacci retracement level of the 121.28-131.35 rally.
Given that technical indicators on the daily chart have again started moving in the positive territory, the USD/JPY pair seems all set to surpass the 23.6% Fibo. and reclaim the 129.00 mark. Some follow-through buying should push spot prices to the 130.00 round figure with some intermediate resistance near the 129.60-129.70 area.
On the flip side, any meaningful pullback below the 127.60-127.55 confluence resistance breakpoint might now be seen as a buying opportunity and remain limited near the 127.10-127.00 region. This is followed by the monthly swing low, around the 126.35 region, which coincides with the 50% Fibo. level and should act as a pivotal point.
Failure to defend the said support levels would negate any near-term positive bias and make the USD/JPY pair vulnerable. The downward trajectory could then drag spot prices below the 126.00 round figure, towards testing the 125.65 support. The next relevant support is pegged near the 61.8% Fibo. level, around the 125.00 psychological mark.
USD/JPY daily chart
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Key levels to watch
Full Article
US: Chicago PMI rises to 60.3 in May versus expected drop to 55 from 56.4 in April
231436 May 31, 2022 21:56 FXStreet Market News
According to the latest release by ISM-Chicago, Inc, the Chicago PMI rose to 60.3 in May versus an expected drop to 55 from 56.4 in April. The latest numbers are in fitting with a gradually slowing, but still robust pace of growth in the US midway through the second quarter of 2022.
Full Article
United States Chicago Purchasing Managers’ Index came in at 60.3, above forecasts (55) in May
231435 May 31, 2022 21:56 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
US stocks struggle but Citi says we’ve seen the worst already
231433 May 31, 2022 21:49 Forexlive Latest News Market News
The China reopening news that helped global stocks on Monday (with the US on holiday) hasn’t extended to the United States as inflation worries mount.
The S&P 500 is down 48 points and European bourses are at session lows.
In a note today, Citi said that peak bearishness for equities has passed:
“Over the near term, our high level takeaway is that the equity markets
have reached a peak bearishness related to Fed expectations and
recession risk,” Citi Strategist Scott Chronert wrote in a client note. “From here, we suspect that volatility will move more down the
single stock path. With the Q2 reporting period approaching, we expect
to see more evidence of this.”
They argue that speculators have been washed out.
“CFTC futures and options positioning data shows that asset manager net
length is near 10-year lows when we normalize notionals by aggregate
market cap or gross exposure,” the note said. “Leveraged fund
positioning contrasts this as the group appears to have taken profits on
shorts in recent weeks. Retail speculation has declined. The sharp
underperformance of social sentiment stocks, non-earning names and other
more speculative trades basically was hinting at this already. But TRF
trading data helps confirm high risk speculation is working its way out
of markets.”
Major US stock indices open the day (and the holiday shortened week) in the red
231432 May 31, 2022 21:45 Forexlive Latest News Market News
The major US stock indices are opening the day and holiday shortened week in the red. The declines are led by the Dow 30 stocks which are down over 400 points in early trading. Within the Dow 30, Johnson & Johnson is down -2.57%. Coca-Cola is down -2.3%, and 3M is down -2.19%. The Dow leader is Chevron which is up 0.94% and the only stock within the Dow 30 stocks to be up on the day. Oil prices have moved higher as the EU agree to a Russian oil embargo at the end of the year.
A snapshot of the market 11 minutes into the opening is showing:
- Dow industrial average -445.62 points or -1.34% at 32767.25
- S&P -49.16 points or -1.18% at 4109.07
- NASDAQ index -123.61 points or -1.02% at 12007.52
- Russell 2000-17.25 points or -0.91% at 1870.64