Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Wall Street indices increased by more than 1%, but the US dollar declined as market mood improved. But the US dollar received support from higher yields. The odds of a rate hike in June increased due to positive US economic statistics, optimism about a debt ceiling agreement, and a decrease in worries about the banking industry, while betting on rate cuts at the end of the year decreased further.
The US Dollar Index (DXY) finished higher near 103.00, but off highs. The US 10-year Treasury yield rose to 3.57%, the highest level in almost a month.
Economic Data
According to the US Energy Information Administration (EIA), US crude oil prices defy the rise in US stocks. Contrary to analysts’ predictions of a 900K decline, stockpiles increased by 5 million barrels in the most recent week to reach 467.6 million barrels.
Key Developments
While there has been some movement in the debt ceiling negotiations, no decision has yet been made. US Vice President Biden cut his tour short in Asia. US housing data were inconsistent. Weekly Jobless Claims, the Philly Fed, and Existing Home Sales will all be released by the US on Thursday.
As a result of renewed optimism following signs that US debt ceiling negotiations might result in an agreement, WTI increased more than 3% in the late New York session, trading at over $72.90. Additionally, the International Energy Agency (IEA) announced that demand would surpass supply, driving increasing oil prices.
EUR/USD hit monthly lows near 1.0800 before rising to the 1.0850 area. However, the Euro lagged following comments from European Central Bank (ECB) officials with a dovish tilt. EUR/GBP posted the lowest daily close since mid-December around 0.8675.
GBP/USD hit weekly lows at 1.2420 and then rose back to 1.2500. Bank of England (BoE) Governor Bailey sounded hawkish, helping the Pound.
USD/JPY jumped from 136.40 to 137.55, posting the strongest close since December, boosted by higher government bond yields and the better tone in equity markets. Japan reported better-than-expected Q1 GDP data and will release trade data on Thursday.
AUD/USD reached weekly lows at 0.6627 but finished modestly higher, uplifted by a weaker US Dollar. Australia will release the April Employment report on Thursday, and the market consensus is for a 25,000 increase in jobs.
NZD/USD rose on Wednesday and peaked at the 100-day Simple Moving Average (SMA) at 0.6270 before pulling back a bit. New Zealand’s Q1 Producer Price Index is due on Thursday, and the government will present the Budget 2023.
Gold remains under pressure while silver offered some signs of stabilization. XAU/USD bottomed at $1,974 but is still holding above the crucial support area of $1,970.
What To Watch on Thursday?
In Asia, it will be a busy session because numerous important reports will be released. The data on Australian employment will be the most significant report. The New Zealand government will present the Budget 2023, and data on wholesale inflation is also forthcoming. Japan’s trade balance data will be released. Although the Kiwi has been outperforming, its strength may be threatened by the Budget and the PPI. The jobs data could make or break the performance of the Australian dollar, which has been under pressure.
Also Read:
Guindos: Tightening Mostly Done, But ECB Still Has A Way To Go
Target’s earnings better than feared as shoppers focus on basics
After sliding $100, could gold touch fresh highs?
WTI soars 3% on optimistic IEA forecast amid debt ceiling talks
Natural Gas Demand Reportedly Booming
