Market Update – May 10/2022

Written by Stuart Cowell

USD cools from recent highs, Stocks stall their decline after Monday rout (NASDAQ -4.29%), Yields hold at highs with 10-yr over 3.00%. Gold and Oil both slumped as risk-off rattled markets CB tightening and rising inflation fears continuing to spook sentiment.  Asian markets weaker (Nikkei -1.00%) and European Futures all weaker.

  • USDIndex tested new at highs at 104.20 yesterday back to 103.60 now.
  • Equities – USA500 -132 (-3.20%) at 3991, first close below 4k since March 2021. US500FUTS at 4022 now.
  • Yields moved higher, 10-yr closed at 3.079%, holding key 3.00% level.  Trades at 3.054% now  
  • Oil & Gold both had weak & volatile session –  USOil tested down to $100.00 before reversing to $102.20 now from opening trades over $109.00Gold slumped from  $1885 zone to $1850 yesterday and struggles at $1860 now.
  • Bitcoin crashed through $30K struggling with $32K now.  
  • FX markets – EURUSD up from 1.0500 to 1.0560, USDJPY holds over 130.00, at  130.40 and Cable continues to struggle – 1.2260 lows were tested yesterday, back to  1.2325.  

Overnight Fed’s Kashkari : Reiterates confidence that inflation will return to Fed’s 2.0% target &  Fed’s Bostic: 50 bps hike was an aggressive move, Fed can stay at that pace, 75 bps rate hike is low probability.

Today – German ZEW, Speeches from Fed’s Williams, Waller, Bostic, Barkin, Kashkari, Mester, ECB’s de Guindos & BoE’s Saunders, Earnings from Bayer, Porsche, Norwegian Cruise Line & Warner Music.

Biggest FX Mover @ (06:30 GMT) AUDJPY (+0.35%) Rallied from lows at 89.70 to over 91.20 highs (resistance) today. MAs aligning higher, MACD signal line & histogram moving higher but remain weak, RSI 44, but rising, H1 ATR 0.33, Daily ATR 1.60.

About the author

Stuart Cowell

With over 25 years experience working for a host of globally recognized organisations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, charts and sentiment work together to provide trading opportunities across all asset classes and all time frames.

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