Market Update – May 26/2022

Written by Stuart Cowell

USD stable today (USDIndex holds 102.00) following FOMC minutes that showed agreement by “most participants” that 50 bp hikes in June & July would “likely be appropriate”, Stocks had a positive session (NASDAQ +1.50%) and Yields ticked up  as treasuries slipped. Asian markets mixed (Nikkei -0.27%) Shanghai reopening gradually (Port is 95% operational & schools from June 6).

  • USDIndex rotates at  102.00.
  • Equities – USA500 +37 (0.95%) at 3978, US500FUTS at 3967 now. $NVDA +5% at close but lowered outlook following Earnings announcement, -6.82% after hours.
  • Yields 10-year yield edged up to 2.781% and the policy-sensitive two-year yield was flat at 2.502%.  
  • Oil & Gold had mixed sessions – USOil steady after a cautious rally this week back up to $110, Gold is weaker – broke below $1850, down to $1846.  
  • Bitcoin rotates under $30K – at $29.6k, having touched $28.6k yesterday.
  • FX markets – EURUSD up to test 1.0670, breach of 1.0700 limited, USDJPY back over 127.00, at 127.25 Cable up to 1.2550.  

Overnight – RBNZ Orr – will move on rates quickly, JPY PPI beats at 1.7% vs 1.5%, World Bank says Russian invasion of Ukraine could cause “global recession”.

Today – US GDP (2nd), US IJC, Canadian Retail Sales, UK Chancellor Sunak, Fed’s Brainard. Earnings from Alibaba, Baidu. Ascension Day holidays – Germany, France, Switzerland, Denmark, Sweden, & Norway all closed.

Biggest FX Mover @ (06:30 GMT) NZDUSD (-0.26%) gave up yesterday’s gains and rejected 0.6500. Trades at 0.6440, support 0.6420 & 0.6400. MAs aligning lower, MACD histogram turned negative but holds 0 line, RSI 47 neutral, H1 ATR 0.0015, Daily ATR 0.0080.

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.