05.05.22 Macro Morning
Chris Becker | May 05, 2022 10:45
Boom there it is! The Fed raises rates by 50 points, the USD goes into deep dive mode and Wall Street salivates, sending stocks up more than 3%! Bond markets saw only a mild pullback however, interestingly, with 10 Year US Treasury yields pulling back to the 2.9% level. The USD lost ground against almost everything, but is still hovering near a 20 year high on the US Dollar Index as this rise was mainly prices in. Euro lifted above the 1.06 level – basically where it was last week – while the Australian dollar jumped even higher, up through the 72 level to where it was just over a week ago. Commodity prices rebounded on the lower USD with WTI and Brent crude oil up several percent, the latter through the $110USD per barrel level while gold prices lifted but still remain stuck below the $1900USD per ounce level.
Bitcoin is still on a downward trend from its March highs, but was finally able to make a new daily high as it approached but didn’t break through the $40K level. While I contend that this is still building for a further retracement down to the February lows at the $37K level, price action is now building for some upside potential in the short term:
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