FX

Data released on Tuesday showed Industrial Production rose 1.1% in April. Analysts at Wells Fargo point out that US factories, mines and energy producers together called more capacity into service than at any other time since the start of the pandemic. They warn supply chains are not fixed and could worsen in the coming months.

EUR/USD bounces off intraday low as bulls await fresh the key catalysts during three-day uptrend. US dollar stays pressured despite firmer yields, risk-on mood weigh on greenback. EC forecasts downgraded GDP estimations, Fed’s Powell expected to repeat 50 bps rate hike concerns. US Retail Sales for April, risk catalysts are also important for fresh impulse.

SNDL stock rockets up 21% in Monday’s premarket. Sundial’s Q1 earnings will be reported after market close on May 16. Q4 2021 earnings led to an analyst upgrade. UPDATE: Sundial Growers stock is up more than 11.3% to $0.4275 about 45 minutes into Monday’s session. This is well lower than the 21% spike shares experienced in the morning’s

EUR/USD reverses Friday’s corrective pullback from five-year low. Risk-aversion returns to table after China reports downbeat economics, renews covid fears. Mixed Fedspeak, softer US data fail test USD bulls of late. Eurozone’s quarterly economic forecasts become interesting amid Russia-Ukraine crisis, ECB’s July rate hike concerns. EUR/USD fails to extend the previous day’s recovery from a

The uspide potential of the US dollar versus the Japanse yen is becoming more limited, warned analysts at MUFG Bank. They noted the USD/JPY pair is reverting to a traditional risk-on/risk-off patterns amid financial instability. Key Quotes: “The fact that US yields have been more sensitive to asset price declines than to higher than expected

Gold’s recovery capped by the $1,820 area, stays under pressure. Improvement in risk sentiment offers limited help to the yellow metal. On a weekly basis, XAU/USD is down almost 4%. Gold bottomed at $1,799 on Friday, the lowest level since February. A recovery followed later that found resistance quickly at $1,820. The yellow metal remains

Data released on Friday showed University of Michigan’s Consumer Sentiment Index fell to 59.1 in May from 65.2 in April, the lowest reading since 2011. According to analysts at Wells Fargo, there is no shortage of factors to blame for the decline in consumer sentiment, from inflation to rising interest rates and financial market instability.

“In times like now when uncertainty is high, central banks must conduct monetary policy by examining various data broadly without any preset idea,” said Bank of Japan (BOJ) Governor Haruhiko Kuroda during early Friday in Asia. Also read: BOJ’s Kuroda: The central bank must continue monetary easing to achieve its price target Additional quotes Japan’s economy

US dollar pulls back as Wall Street turns positive. Tensions across financial markets remain on the table. NZD/USD rebounds modestly, bearish bias persists.  The NZD/USD bottomed during the American session at 0.6222, the lowest level since June 2020 and then rebounded modestly to 0.6266, trimming losses. The dollar moved off high across the board but

European Commission President Ursula von der Leyen thanked Japan for diverting some LNG supplies to Europe ‘at a most serious time’, referring to the Russia-Ukraine war. Further comments Indo-pacific is an ‘area of tensions,’ EU wants to take more active role in region. We are launching Japan-EU digital partnership. Will use strategic relationship to strengthen, protect

Consumer prices surpassed expectations in April, rising a firm 0.3%. The core index surged above the consensus median as well, posting a strong 0.6% MoM increase. These figures bode well for the US dollar, economists at TD Securities report. Core services shock “Consumer prices surpassed expectations in April, rising a firm 0.3% MoM. The core

The formation of a bullish divergence bolsters exhaustion signals. The 20-EMA is testing the strength of the kiwi bulls. Momentum oscillator RSI (14) has shifted in the 40.00-60.00 range.   The NZD/USD pair has displayed a volatility contraction as the asset is oscillating in a narrow range of 0.6280-0.6310 from the previous trading session. Earlier, the

Federal Reserve Bank of Richmond President Thomas Barkin said on Tuesday that once the Fed has gotten interest rates back to neutral, it can then decide whether it needs to put brakes on the economy (i.e. by further lifting interest rates into restrictive territory), depending on the level of inflation, reported Reuters. The Fed’s policy path

EUR/USD remains indecisive after testing the bears of late. Mixed concerns, pullback in US Treasury yields and the DXY keep traders on their toes. Germany’s ZEW Sentiment data for May, central bankers’ comments can offer immediate directions. Wednesday’s key US inflation, speech from ECB’s Lagarde could infuse volatility. EUR/USD stays defensive around mid-1.0500s as global

USD/CAD shot to a fresh YTD high on Monday, albeit struggled to capitalize on the move. Last week’s breakout through a descending trend-line supports prospects for further gains. Any meaningful pullback could still be seen as a buying opportunity and remain limited. The USD/CAD pair gained positive traction for the third successive session and climbed

Silver prices remain pressured around intraday low, down for third consecutive day. Multiple levels marked since September 2021 limited immediate downside ahead of $21.42. Three-week-old descending trend line, bearish MACD signals challenge recovery moves. Silver (XAG/USD) prices stay on the back foot at around $22.25, printing a three-day downtrend during Monday’s Asian session. In doing

GBP/USD grinds lower but stays around 1.2350s after upbeat US NFP report The British pound appears to regain composture but remains losing in the day, down 0.06%, after the Bank of England hiked rates by 25-bps on Thursday. At the time of writing, the GBP/USD is trading at 1.2352. The GBP/USD is still downward biased, though

The Australian dollar finished the week in an upbeat tone, with gains of 0.15%. A dismal market mood was not an excuse for the AUD to appreciate vs. the greenback. The pace of rate hikes by the RBA/Fed would favor the US dollar. The AUD/USD snapped five consecutive weekly losses and is recording decent gains