03.05.22 Macro Morning
Chris Becker | May 03, 2022 09:12
Overnight stock markets were quite mixed with European bourses pulling back while Wall Street initially made a new low before a late surge saw them barely recover to the Friday night starting position, as the correction mode remains intact. Bond markets are where the action really is with 10 Year US Treasury yields making a new high, pushing through the 3% level with a 50 basis point rise by the Fed coming just around the corner. The USD remains on a tear against everything, near a 20 year high on the US Dollar Index, while commodity prices oscillated, as WTI and Brent crude oil both firmed a little while copper and gold prices flunked, the latter pushed well below the $1900USD per ounce level.
Today’s RBA meeting will be the highlight of the Asian session with a rate rise expected.
Bitcoin is still on a downward trend from its March highs, almost making a new daily low overnight as it remains anchored below the $40K level. The lack of confidence in the crypto world is still building for a further retracement down to the February lows at the $37K level, so I’m watching for a breakdown below that level next as daily momentum remains nicely oversold and price action lacks upside potential in the short term:
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