Market Update – May 25/2022

Written by Stuart Cowell

USD slipped again, but is  stable today (USDIndex 102.00), weak global PMI data & US data missed and Powell adding to rate hike expectations meant Stocks had another volatile session (SNAP lost -43%, and other big tech stocks hit NASDAQ -2.35%) Yields down as treasuries firmed. Asian markets mixed (Nikkei -0.26%) RBNZ raised by 50bps & Gov. Orr had more hawkish outlook than expected (rates to 4%?) NZD surged. NK tested a range of missiles as Biden left Asia, Zelenskiy says Donbas situation critical.

  • USDIndex down to 101.64 yesterday back to 102.00 
  • Equities – USA500 -32 (0.81%) at 3941, US500FUTS at 3962 now. Snap lead some huge declines. 
  • Yields down, 10-yr closed at 2.76%, now 2.77%  
  • Oil & Gold both had positive sessions – USOil back up  to test $111 Gold holds $1860 today, down from $1870.  
  • Bitcoin rotates through $30K – but under today at $29.8k.
  • FX markets – EURUSD up to test 1.0750, holds 1.0700, USDJPY down to 127.00, Cable up to 1.2540.  NZD off 5-week low at 0.6515

Overnight – Hawkish RBNZ, German Gfk missed, French Consumer Confidence missed.

Today – US Durable Goods, FOMC Minutes, ECB Financial Stability Review, Speeches from ECB’s Lagarde, Lane, Panetta, Fed’s Brainard

Biggest FX Mover @ (06:30 GMT) EURNZD (-1.02%) Tanked from 1.6650 to 1.6425 on Hawkish RBNZ. MAs aligning lower, MACD histogram turned negative crashing signal line  RSI 29, OS & falling, H1 ATR 0.0043, Daily ATR 0.01413.

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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