Please leave a message and we will get back to you.Send
The weakness of the dollar meant also for EM pairs a reversal of the trend over the past days with currency pairs like the USD/MXN and USD/ZAR reversing from the upside of the past days, while the USD/TRY pair continued to push lower after testing in the previous week levels close to its previous all-time high.
The USD/RUB pair continued on the downslope despite the recent threat by the European Parliament to cut out Russia from the SWIFT system in case of an invasion in Ukraine. Still, there are key politicians in the EU opposing such move, while the country has in the past announced to have taken measures to prepare for different scenarios.
Stock market performance was quite mixed in the past days. While the Germany 30 index for example moved only very slowly higher, others like the US 500 reached a new all-time high and the India (50) was even seen up on a monthly basis despite the ongoing issues the country is facing because of the pandemic.
Performance among cryptos was quite mixed with Bitcoin stagnating mostly below $55k, while Dogecoin edged higher, a move that was attributed to tweets from both Tesla CEO Elon Musk and Dallas Mavericks Mark Cuban seen as supportive of the sixth biggest crypto in terms of market cap (not including stablecoins). It should be noted that Musk’s company recently disclosed that its well over a billion dollar digital currencies holdings sales contributed a positive net of around $101 million to its quarterly results, leading to some analysts mockingly call the company a crypto trading company that also happens to sell EVs.
The EUR/USD pair moved to a new two months high following the FOMC policy announcement. While the common European currency traded relatively unchanged against other majors, the uptrend of the EUR/JPY pair continued as it reached a new high since October 2018.
On Thursday the European Commission (EC) releases its economic sentiment and consumer and industrial confidence indicators. Also, Germany publishes CPI numbers and Italy its PPI data. German Inflation is set to also continue to rise in line with global trends with the annualized CPI projected to rise from 1.7% to 1.8% in April.
Gold prices strongly rebounded from the intraday low seen at the start of the European trading session Wednesday as the FOMC reiterated its dovish stance and thus seen affecting the strength of the greenback. Silver prices ended the trading day also cautiously higher, while platinum was down. Palladium prices meanwhile remain elevated not that far away from the recent all-time high reached on Tuesday given concerns about shortages in the market.
As gold is predominantly traded in US dollar, fundamentals could play a significant role in its movements such as the quarterly GDP statistics that will be released on Thursday before US stock markets open. Also on Thursday data on pending home sales and weekly jobless claims will be released.
Oil prices moved strongly higher around the time of the weekly data release by the Energy Information Admiration (EIA), rising to a new five-weeks high. Crude oil stockpiles were surprisingly only up by 0.1 million barrels compared to the previous week, similarly to the changes seen in gasoline stockpiles, whereas a significantly higher crude oil build was reported one day earlier in the weekly by the API.
While the pandemic is still seen as a factor affecting global demand for now the draw on distillate inventories as well as increased activity at refineries might be seen as a signal of a cautious recovery. Meanwhile the TSA checkpoint travel numbers of the past days seem to be mostly in line with the trends seen in the past weeks, meaning the recovery might be seen as stalled for now.
The US 500 index extended to a new all-time high by Thursday morning, while other major indices like the US Tech 100 managed only to offset intraday losses. Stock markets were during the day seen adversely by the Federal Reserve announcement despite the central banking organisation pledging to the current accommodative policies.
Facebook edged strongly higher in after-hours trading after announcing strong commercial results for the past quarter thanks to an increase in average prices for ads on its platform but marginally missing on expectations for daily active users.
Apple shares were also up in after-hours with the company announcing $90 billion worth of share buybacks as quarterly sales were up by 54 per cent with revenues across all hardware segments (i.e. iPhone, Mac and iPad) significantly exceeding expectations. The company saw strong demand from first-time buyers of its Mac products especially in China.
Thursday will be another day packed to the brim with earnings from companies including McDonalds, MasterCard, Caterpillar, Kraft Heinz, Merck, Amazon, Twitter, NIO and others.
The materials contained on this document should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument, in any manner whatsoever. Any indication of past performance or simulated past performance included in this document is not a reliable indicator of future results. For the full disclaimer click here.