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The USD index is trading in a narrow range before we hear from the Fed chair Jerome Powell and later the ECB’s Lagarde. Powell is expected to keep the hawkish tones on inflationary pressures. US PMI is also of interest with an estimate of 55.5 for May, lower than April’s 56. https://www.cccapital.co.uk/

EURUSD is consolidating around the 1.0600 level after recent hawkish ECB comments on a possible July rate hike. on a data light day at 9am UK time we have the German IFO survey for May expected 91.4 versus 91.8 previous. https://www.cccapital.co.uk/

Heavy losses for USA indices and more $ strength in the afternoon session yesterday with the markets remaining risk off this morning. Today the ECB will publish the minutes of its April policy meeting and from the USA the weekly Jobless Claims and the Phili Fed’s Manufacturing Survey. https://www.cccapital.co.uk/

Gold remained subdued around the $1810 area. Powell backing interest rate rises to control inflation and retail sales numbers contributed to the bearish tone for the non yeilding precious metal. Oil up on thoughts of improvingh covid situation in China. http://ow.ly/2iXC50JaTkL

China retail sales showed a steep decline of 11.1% against an expected fall of 6.6%. Industrial production also fell 2.9% against an expected rise of 0.5%. These numbers will mean a lower opening for European indices and a softer tone to Oil. https://www.cccapital.co.uk/

The Michigan Consumer Sentiment Index will give a guide to consumers spending habits in May. From other data it loos like the consumer is still spending but if sentiment is worse than expected we may see worries about a consumer led recession surface. https://www.cccapital.co.uk/

GBP below 1.2200 against strong USD as quartely UK GDP grows by 0.8% rather than the expected 1%. Inflation and growth worries lead equity markets lower. Growth worries continue with lockdowns in China seeing USDCNY hit a 20 month high of 6.7750. https://www.cccapital.co.uk/

Will we see lower US inflation today with CPI expected at 8.1% for April, down from 8.5% in March. Underlying factors remain and even with a drop this will probably not be enough to change investor views but could cause a short term move. www.cccapital.co.uk

Investors continue to look for safety as concerns rise about the global economy, war in Ukraine, inflation, rising interest rates and China lockdowns. The USD index measures the USD against 6 major currencies and hit its highest level since 2002.
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German Industrial Production gave the USD a further boost against the EUR by registering a 3.9% decline against the expected 1%, we are seeing further retrenchment in the major equity markets this morning as all eyes turn to NFP. Visit: https://www.cccapital.co.uk/economic-calendar/

Equities higher and USD lower last night as the Fed adopted a less hawkish stance than expected on the balance sheet reduction. Powell said the Fed not "actively considering" 0.75% rises. Is the move more profit taking than a trend reversal? Visit: https://www.cccapital.co.uk/

Big couple of days for GBPUSD with Fed meeting this evening with a 0.5% increase in interest rates expected. BoE tomorrow with 0.25% expected. Would a hawkish 0.5% increase in UK rates help Sterling? Visit: https://www.cccapital.co.uk/

Will we see a dovish 0.25% rate hike from the UK? The BoE is worried about inflation driving up wages but also with increasing household costs causing consumer led growth to slow. The need is to balance containing inflation without slowing growth. Visit https://www.cccapital.co.uk/

EUR and DAX continue to bounce from the lows due to slightly better than expected German GDP figure of 3.7%. Next week brings interest rate decisions from Australia, UK and USA any larger than expected moves couldsee an impact on the currencies. Visit https://www.cccapital.co.uk/

Unilever, the household products maker, posted first quarter figures and notable was the 8% price rise to offset higher supply chain and energy costs. With German inflation numbers later today expected at 7.6% it seems inflation pressures continue. Visit: https://www.cccapital.co.uk/

One of the most interesting policy divergences is the hawkish Fed and the BoJ's dovish policy focused on low long term rates. On Thursday we will hear the BoJ monetary policy decision and see if USDJPY will hit levels not seen for about 20 years. Visit https://www.cccapital.co.uk/

The USD continues to gain with EUR/USD close to the 2020 lows at 1.0637 as the US dollar resumes its uptrend on China covid concerns and hawkish Fed bets. Cable is also close to the 1.2700 level. The pound continues to suffer from the Fed-BOE policy divergence theme. We await USD Durable goods data this afternoon.

Oil and stocks continue to slide while the USD is higher on worries of a global slowdown, war in Ukraine, higher interest rates to contain inflation and lockdowns in China. Oil was down nearly 4%, the Hang Seng fell over 3% and the Shanghai composite over 4%. The European markets are all showing weakness. For more news visit: https://www.cccapital.co.uk/

Stocks listed on global markets slumped this morning. Several factors bearing down on commerce not least of all ongoing supply issues. In terms of FX, GBPUSD saw a dramatic drop, not helped by UK retail sales which fell by 1.4% in March 2022. For other FX news visit: https://www.cccapital.co.uk/

European markets showed healthy gains earlier today with stocks listed on DAX, CAC40 and IBEX 35 among the highest risers. In terms of FX, EURUSD and EURGBP were both enjoying an uptick despite ongoing volatility. For other FX news visit: https://www.cccapital.co.uk/

Global markets recover following yesterday's slump. Oil remains one of the strongest performing commodities. There has also been some recovery in FX markets for the Euro earlier today although volatility is still evident. For other FX News visit: https://www.cccapital.co.uk/

Nikkei 225 aside, world markets slumped although some stocks, as always, doing better than others. In terms of FX the Euro was making a modest recovery earlier today. US Dollar continued to look strong especially paired with the Yen. For other FX news: https://www.cccapital.co.uk/

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Stocks listed on Nikkei 225 & FTSE 100 rose earlier today with Energy minerals the highest riser. Continued pressure on GBPUSD as latest ONS data shows consumer price inflation in the UK increased by 6.2% in the 12 months to March 2022. For other FX news: https://www.cccapital.co.uk/

With the exception of Hang Seng, international finance markets slumped earlier today. Volatility remains evident in FX although a number of currency pairs notably USDJPY, USDCAD & USDCHF seemed to be faring better than others. For more FX new visits: https://www.cccapital.co.uk/