20.05.22 Macro Morning
Chris Becker | May 20, 2022 09:06
Share markets are still clutching their pearls over “inflation concerns” with European shares playing catchup overnight as Wall Street put in a scratch session with no new news to further spook equity traders. The bond market however saw more firming with the 10 Year US Treasury yield pulling back to the 2.77% level, with interest rate markets still continuing to price in nearly 2% of rate rises to come from the Fed by the end of the year with a 50 bps rise predicted for next month. Meanwhile the USD lost ground again with the Dollar Index down over 1% as commodity currencies and other undollar assets swung back again. Commodity prices all swung higher after some downside action previously, with WTI and Brent crude up by nearly 3% while gold and copper rebounded by more than 1 and 2% respectively.
Bitcoin is still going nowhere, although a small blip overnight saw it breach the $30K level but price is still contained as shown clearly on the four hourly chart below. After cracking through the $25K level last week, momentum remains oversold and price action has not yet recovered as trailing ATR resistance remains overhead for now:
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