Markets:
- West Texas crude oil rose 96 cents to $72.79
- Gold rises from $6 to $1,946
- The US 10-year bond yield is steady at 3.81%.
- Standard & Poor’s 500, up 1.4%
- Sterling is leading, the yen is lagging behind
The odds of a June Fed hike have risen to 70% from 50% today, and that tells the story in the FX market, with the dollar rising, though not in a direct way. Both pricing figures and consumption figures were hot in the PCE data and the big winner was USD/JPY, which hit a new high for the year.
Initially it was a broad rally for the US dollar but it was more back and forth later as the market was also weighing stronger economic expectations. Streams to American technology are also a seemingly unstoppable force as well, with Nasdaq
Nasdaq
The Nasdaq Stock Exchange or NASDAQ is an American stock exchange. It tracks only the New York Stock Exchange (NYSE) by market capitalization and is part of a network of stock exchanges and options exchanges. Launched in 1971, NASDAQ is an acronym for National Association of Automated Quotations of Securities Dealers. It has since been known simply as NASDAQ and has become one of the most influential stock exchanges around the world. NASDAQ was the world’s first electronic stock market, and it has been going ever since
The Nasdaq Stock Exchange or NASDAQ is an American stock exchange. It tracks only the New York Stock Exchange (NYSE) by market capitalization and is part of a network of stock exchanges and options exchanges. Launched in 1971, NASDAQ is an acronym for National Association of Automated Quotations of Securities Dealers. It has since been known simply as NASDAQ and has become one of the most influential stock exchanges around the world. NASDAQ was the world’s first electronic stock market, and it has been going ever since
Read this term Earn another 2.2% from the AI boom.
Pound managed to push back U.S. dollar
U.S. dollar
The US dollar, ($ symbol, USD symbol) is the paper currency of the United States of America (USD) and the most traded currency globally. It was introduced to the United States in the late eighteenth century, with banknotes not being distributed until the next century. The US dollar, also known informally as the greenback, is the world’s premier reserve currency, in large part due to the importance of the US economy on the world stage. The US dollar is now backed by gold (in the 20th century)
The US dollar, ($ symbol, USD symbol) is the paper currency of the United States of America (USD) and the most traded currency globally. It was introduced to the United States in the late eighteenth century, with banknotes not being distributed until the next century. The US dollar, also known informally as the greenback, is the world’s premier reserve currency, in large part due to the importance of the US economy on the world stage. The US dollar is now backed by gold (in the 20th century)
Read this term But it fell 90 pips from its highs before bouncing late.
Monday is a holiday in the US so there were some profitable positions over the weekend, especially in long bonds that didn’t want to be snuck in on a debt ceiling deal and a flurry of Treasury issues. Yellen pushed back the deadline to at least June 5, so the play could run for another week.
But the bigger story is that the dollar seems to be breaking through on a number of fronts and there is no weakness in the US yet in the data. Will next Friday’s non-farm payroll report change that? Listen to find out.
Have a good (long) weekend.
For those in the United Kingdom and the United States.