18.05.22 Macro Morning
Chris Becker | May 18, 2022 09:08
Last night saw a bigger bounceback on stock markets with both European and US shares properly extending their recent gains, helped by a weaker USD. The reaction to Fed Chair Powell's comment on containing inflation, and the latest US retail sales print wasn’t as spooky as expected either, although the bond market saw further weakening as the 10 Year US Treasury yield eased back to just below the 3% level, with interest rate markets continue to price in nearly 2% of rate rises to come from the Fed by the end of the year. Meanwhile the USD lost a lot of ground, down nearly 1% as commodity currencies and other undollar assets swung much higher, with Euro in particular coming back stronger alongside the Australian dollar. Commodity prices were a bit mixed however with Oil down nearly 2% after making a one month high, copper up slightly while gold went nowhere again as it remains anchored near the $1800USD per ounce level.
Bitcoin is going nowhere again, unable to get above the $30K level after cracking through the $25K level last week. Daily momentum remains oversold and price action is indicating a rollover is imminent:
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