USDIndex continued to decline testing 106.25, ECB surprised with Hawkish 50bp rate hike lifting rates above 0 (first hike since 2011) and lifting Euro. US Stocks had another positive day (NASDAQ +1.36%) TSLA +9.78%, SNAP +5.42% but dropped -24% after hours on Earnings miss AT&T -7.42% & United Airlines -10.17%. Asian markets are mostly positive. (Hang Seng -0.01%, Nikkei +0.40%). European FUTS also mixed. Yields are down -4.78%. Oil bounced from $95.00 trades at $98.00, Gold up $1720, BTC holds over $22k. Gazprom turns the gas back on but Europe remains nervous as solidarity is tested, Biden tests Covid positive.
- USDIndex slides further to test 106.25 before bouncing to 107.25 support as EURO rally cools.
- Equities – USA500 closed +0.99%, 39.00pts (3998), US500FUTS at 3884 now.
- Yields 10-year yield lower into close at 2.91, trades at 2.915% now.
- Oil & Gold had volatile sessions last week – USOil trades up from $95 to test $98.00. Gold tests $1720 now from $1680.
- Bitcoin rallied to $23.8K yesterday and holds $22k now, on more chatter of major investments coming.
- FX Markets – EURUSD remains pressured but tested 1.0280 yesterday & back to 1.0142 now and USDJPY is down again to 137.58 now. Cable tested back to 1.2000 & back down ti 1.1913. Race to be new PM is reduced to two contenders this week. New PM Sept 5.
Overnight – UK Retail Sales and PMIs from Europe, Germany, UK and US.
Today: UK & US Flash PMIs, UK Retail Sales, ECB SPF & CBR Policy Announcement, Earnings from American Express, Verizon.
Biggest FX Mover @ (06:30 GMT) AUDUSD (+0.60%). AUD continues to recover from last week’s 0.6680 low and no surprises today from RBA Minutes. Next resistance 0.6850 & 0.6900. MAs aligned higher, MACD histogram & signal line higher, RSI 67 & rising, H1 ATR 0.00124, Daily ATR 0.00908.
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Stuart Cowell
Head Market Analyst
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