01.04.22 Macro Morning
Chris Becker | Apr 01, 2022 10:05
Risk sentiment soured again overnight, as expectations of any ceasefire of progress in Ukraine dwindling with European shares and then Wall Street both losing over 1% for the night. The defensive USD rose against most of the major currency pairs although the Australian dollar remains stubbornly high. Volatility in interest rate and bond markets abated somewhat in the wake of the US PCE release with the 10 year Treasury pulling back to the 2.3% yield level while commodities saw big shakeups in oil prices as the US released its strategic oil reserve. Both WTI and Brent crude lost nearly 5%, but both remain above the $100USD per barrel level while gold tries to bounce off support at the $1900USD per ounce level again.
Bitcoin continued its own pullback after recently halting at the $48K level after making a new monthly high, falling back to weekly resistance at the $45K level. Daily momentum was considerably overbought, so this reversion to mean here after having cleared resistance at the January and February highs is not unexpected, but still keeps the $50K level as the next target:
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