The cryptocurrency market has experienced very high volatility in recent days, the sell-off has sparked concerns over the risk of recession and galloping inflation. These factors made the stock indices dive again, dragging the cryptocurrency market with them. One can see that the correlation of Bitcoin with the NASDAQ technological index is still strong, which […]
Archive for May 6th, 2022
Archive for May 6th, 2022
Archive for May 6th, 2022
06
May
May
Chart of The Day
As the first Friday of a new month has arrived, the time has come for release of the US jobs data. Report for April may have less gravity than usual as the Fed has already set out guidance for rate hikes at coming meetings. Nevertheless, some short-term volatility on the USD market is likely to […]
06
May
May
Good Morning Traders
US indices slumped yesterday, erasing all of post-FOMC gains. S&P 500 dropped 3.56%, Dow Jones moved 3.12% lower and Nasdaq slumped 4.99%. Russell 2000 dropped 4.04%. Indices from Asia-Pacific followed Wall Street’s lead and also slumped. S&P/ASX 200 dropped 2.2%, Kospi dropped 1.1% and indices from China traded 2-4% lower. DAX futures point to a […]
05
May
May
Talking GBP/USD
FOMC delivered a 50 basis point rate hike, in-line with market expectations, and announced the beginning of balance sheet run-off in June. As the pace of monthly reductions in the balance sheet was lower than expected and Powell said that 75 bp rate hikes are not actively considered, equity markets rallied and USD dropped. Now […]
05
May
May
Today’s Economic Calendar
European markets set for higher opening Bank of England expected to deliver 25 bp rate hike Earnings from Nikola and Virgin Galactic Futures markets point to a much higher opening of today’s European session. FOMC meeting yesterday, more precisely Powell’s comments during the presser, sparked a rally in US indices and upbeat moods extended into […]
05
May
May
Good Morning Traders
FOMC delivered a 50 basis point rate hike and announced the beginning of quantitative tightening in June at a pace of $47.5 billion per month. Pace will increased to $95 billion after 3 month. US indices recovered from a drop and rallied yesterday after Powell ruled out 75 basis point rate hikes for now. S&P […]
04
May
May
Talking Oil (WTI)
Oil traders are turned to Europe today as the European Union debates over the shape of the looming embargo on Russian oil. This is a major medium- and long-term factor for oil prices and is pushing crude prices higher today. Amid such high level talks it is easy to miss another factor for oil prices […]
04
May
May
USD Still Bullish In Spite of ISM Miss
While today is all about the FOMC decision in the evening (7:00 pm BST), it does not mean that the US economic calendar for the earlier part of the day is empty. Investors were already offered a disappointing ADP employment report for April and now the time has come for a release of services ISM […]
04
May
May
ADP Miss Sees Muted EUR/USD
ADP employment report for April was released today at 1:15 pm BST. As a final hint ahead of the NFP release this Friday (1:30 pm BST), the report was closely watched by investors. However, as today is also a FOMC decision day (7:00 pm BST), one should not be surprised by the lack of major […]
04
May
May
It’s All About The Fed
Today at 07:00 pm BST the Fed will publish interest rate decision and plans regarding shrinking its $9 trillion asset portfolio The Fed will raise interest rates by 50 basis points Further communication will be crucial when it comes to overbought dollar, oversold gold and US indices The Fed must face not only high inflation, but […]