16.05.22 Macro Morning
Chris Becker | May 16, 2022 10:39
Friday night finally saw a proper bounceback on stock markets after weeks of downside volatility with Chinese shares leading the way into the European session and then Wall Street taking over after desperately trying to find a bottom in the mid-week. While the latest US consumer sentiment figures disappointed, the Fed is still ready to go all in on more interest rates, which is keeping currency markets in their place unlike their scruffy stock market cousins. The bond market moved around only a little with the 10 Year US Treasury yield still flitting around the 2.8 to 2.9% level, with interest rate markets still forecasting nearly 2% of rate rises to come from the Fed by the end of the year. Meanwhile the USD pulled back slightly as some risk currencies swung a little higher but remains at a 20 year high with Euro still quite depressed. Commodity prices were generally good with Oil lifting 4%, copper up nearly 2% while gold is also depressed to fall back to the $1800USD per ounce level.
Bitcoin is desperately trying to get out of capitulation mode, finishing the week just above the $31K level after cracking through the $25K level at one stage in a very steep selloff. There’s going to be a lot of crypto chad’s hurting this week wanting to bid this back up, but this remains a swing play only with trailing resistance a long way away:
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