The global economy is in focus after weak economic data from China highlighted worries

• China's retail and factory activity fell sharply in April following extensive COVID-19 lockdowns
• ECB policymaker said the Euro's weakness could lurk the efforts to steer inflation towards its target
• Canadian factory sales fell 2.5% in March from March, Statistics Canada said

Forex market

U.S dollar index was lower yesterday after hitting a 20-year peak last week, with the global economy in focus after weak economic data from China highlighted worries about the prospects for a global slowdown. Creating a risk-off mood yesterday, China's retail and factory activity fell sharply in April as extensive COVID- 19 lockdowns confined workers and consumers to their homes. 

But Shanghai did set out plans for the return to a more normal life from June 1. Following the release of China's data trading was focused on macro-economic data yesterday. It's important to highlight that the risks are towards a stronger dollar and primarily, that's because if you look at the macroeconomic climate, the fundamentals don't look good. From a risk-off perspective that should still support the dollar against most currencies. But the greenback was consolidating after its recent strength and more range-bound trading sessions were possible. It makes sense for some period of consolidation before the next leg is higher. 

Economic Calendar

Trading in the dollar may be muted partly because a lot of bad news has already been priced in but also because investors are waiting for events such as the U.S. retail sales data release and a public appearance by Fed Chair Jerome Powell both scheduled for today. The euro was pulled from its earlier lows after European Central Bank policymaker Francois Villeroy de Galhau said the common currency's weakness could threaten the ECB's efforts to steer inflation towards its target. 

The Australian dollar, which is highly exposed to the Chinese economy, reversed course as the day wore on and was last up against the dollar after falling as much as 0.9%. The dollar index was last down 0.37% at 104.16, after briefly crossing the 105 level on Friday - its highest level since December 2002, after six successive weeks of gains.

Euro-EUR

The single currency has tumbled almost 9% since February and fell to its lowest levels since 2017 last week, a move that accelerated upward pressure on inflation in the euro area, which is already running at a record high 7.5%. The euro's weakness on currency markets could threaten the ECB's efforts to steer inflation towards its target. Overall, the EUR/USD traded with a low of 1.0469 and a high of 1.0563 before closing the day around 1.0497 in the New York session.

Japanese Yen-JPY

The Japanese Yen traded lower with the global economy in focus after weak economic data from China highlighted worries about the prospects for a global slowdown. Creating a risk-off mood yesterday, China's retail and factory activity fell sharply in April as extensive COVID-19 lockdowns confined workers and consumers to their homes. Overall, the USD/JPY traded with a low of 128.32 and a high of 131.23 before closing the day around 130.82 in the U.S session.

British Pound-GBP

The British Pound steadied yesterday after Bank of England Governor Andrew Bailey said the current inflation surge was the central bank's biggest challenge since it gained independence in 1997. In a choppy day, sterling had fallen both against the U.S. dollar and the euro as weak Chinese economic data added to pressure on risky currencies. Overall, the GBP/USD traded with a low of 1.2409 and a high of 1.2568 before closing the day at 1.2455 in the New York session.

Canadian Dollar-CAD 

The Canadian Dollar weakened against the greenback yesterday, and the yield on benchmark government debt slipped. Canadian factory sales fell 2.5% in March from March, Statistics Canada said. Analysts polled by Reuters had expected factory sales growth of 1.7%. Canadian wholesale trade grew by 0.3% in March. Overall, USD/CAD traded with a low of 1.2788 and a high of 1.2877 before closing the day at 1.2805 in the New York session.

Australian Dollar-AUD

The Australian Dollar suffered a fresh setback yesterday when stunningly weak economic data out of China stoked fears of a global recession, undermining risk assets and commodities. Chinese retail sales sank 11.1% in April from a year earlier, far beyond forecasts of a 6.1% drop and testimony to how tough coronavirus lockdowns have been there. Overall, AUD/USD traded with a low of 0.6826 and a high of 0.6951 before closing the day at 0.6853 in the New York session.

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Euro-Yen EUR/JPY

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The Relative Strength Index is above 35 and lies below the neutral zone. In general, the pair has gained 1.25%.

Sterling-Yen GBP/JPY

Currently, GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 33 reading and lies below the neutral zone. On the whole, the pair has gained 1.16%.

Aussie-Yen AUD/JPY

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 36 reading and lies below the neutral region. In general, the pair has gained 1.45%.

Euro-Sterling EUR/GBP

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 58 and lies above the neutral region. Overall, the pair has gained 0.12%.

Sterling-Swiss This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 50 and lies below the neutral region. In general, the pair has lost 0.42%.

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

Global shares rose on Friday as Wall Street rallied to end a volatile week of trading

US stock market: Global shares rose on Friday as Wall Street rallied to end a volatile week of trading, while oil jumped 4% on the back of record-high U.S gas prices. Global markets and U.S. stocks were down sharply most of the last week as investors grew anxious about the possibility of a recession. 

The S&P 500 index is off nearly 20% from its all-time high in January and was close to a bear market on Thursday. But investors' fears over whether U.S Federal Reserve Chair Jerome Powell can accomplish a "soft landing" - bringing inflation down while keeping the U.S economy growing - appeared to ease at least temporarily on Friday. Despite Friday's gains, the S&P 500 and the NASDAQ posted their sixth consecutive weekly loss, and the Dow notched its seventh consecutive weekly dip. 

Economic Calendar

Stocks were ready to rebound as some investors remain hopeful the Fed will deliver a soft landing, while others are ready to buy the dip. Oil prices jumped 4% as U.S gasoline prices jumped to a record high and China looked ready to ease pandemic restrictions.

Dow Jones Industrial Average

The Dow Jones Industrial Average added 1.47%. The best performers of the session on the Dow Jones Industrial Average were Nike Inc., which rose 4.74% or 5.11 points to trade at 113.01 at the close. Meanwhile, Salesforce.com Inc. added 4.05% or 6.49 points to end at 166.91 and American Express Company was up 3.58% or 5.48 points to 158.75 in late trade. The worst performers of the session were Johnson & Johnson, which fell 0.57% or 1.02 points to trade at 176.85 at the close. Amgen Inc. declined 0.54% or 1.32 points to end at 243.40 and Merck & Company Inc. was down 0.46% or 0.42 points to 90.41.

NASDAQ 100

The NASDAQ index gained 3.82%. The top performers on the NASDAQ Composite were ShiftPixy Inc. which rose 154.87% to 0.51, Polarityte Inc. which was up 44.51% to settle at 0.21 and Veru Inc. which gained 43.96% to close at 13.00. The worst performers were LiqTech International Inc. which was down 45.36% to 0.50 in late trade, Brilliant Earth Group Inc. which lost 33.63% to settle at 4.48 and Tenon Medical Inc. which was down 26.41% to 6.52 at the close.

Oil price - Crude Oil market, Brent Oil market

Oil prices rose about 4% on Friday as U.S gasoline prices jumped to a record high, China looked ready to ease pandemic restrictions and investors worried supplies will tighten if the European Union bans Russian oil. U.S West Texas Intermediate (WTI) crude rose $4.36, or 4.1%, to settle at $110.49. That was the highest close for WTI since March 25 and its third straight weekly rise. 

U.S gasoline futures soared to an all-time high after stockpiles fell last week for a sixth straight week. That boosted the gasoline crack spread - a measure of refining profit margins - to its highest since it hit a record in April 2020 when WTI finished in negative territory. Oil prices have been volatile, supported by worries a possible EU ban on Russian oil could tighten supplies but pressured by fears that a resurgent COVID-19 pandemic could cut global demand. In China, authorities pledged to support the economy and city officials said Shanghai would start to ease coronavirus traffic restrictions and open shops this month.

Precious and Base Metals - Gold price, Silver price, Palladium price

Gold prices edged down in choppy trading today as strong dollar-hurt demand for the greenback-priced metal set it on course for a more than three-month trough hit in the previous session. However, a fall in benchmark U.S. 10-year Treasury yields limited losses in zero-yield gold, helping keep prices above the key psychological support level of around $1,800 per ounce. 

Spot gold was down 0.1% at $1,808.61 per ounce. U.S gold futures dipped 0.2% to $1,804.80. With $1,800 being such a big round number, it's natural for it to provide some level of support as some (traders) try to be brave and buy a dip, whilst others close out profitable shorts. Marking a fourth straight weekly decline, gold prices on Friday fell more than 1% to $1,798.86 per ounce, before closing at $1,811.15. But it's not looking great for gold bugs right now. Even if we do see a bounce from $1,800, the momentum clearly favors a further downside. 

Concerns around global growth helped the dollar start the week just off a 20-year high against its peers, making rival safe-haven gold less attractive for buyers holding other currencies. Inflation will need to move lower for "several months" before Federal Reserve officials can safely conclude it has peaked, Cleveland Fed President Loretta Mester said on Friday, adding she would be ready to consider faster rate hikes by September Fed meeting if the data does not show improvement.

 Although seen as an inflation hedge, gold is sensitive to rising U.S. short-term interest rates and bond yields, which raise the opportunity cost of holding bullion. Spot silver eased 0.2% to $21.03 per ounce, platinum gained 0.1% to $939.70, and palladium rose 0.6% to $1,955.59.

Traditional Agricultures - Corn futures, Wheat futures,  Soybean futures

Wheat futures set contract highs on Thursday as the U.S. Department of Agriculture (USDA) slashed its production forecast for the variety that is grown in the U.S. Plains and used to make bread. USDA, in a monthly crop report, projected hard red winter wheat output at 590 million bushels, down from its April estimate of 749 million and below analysts’ expectations for 685 million. Hot weather has stressed the crop, with drought affecting about 69 percent of U.S. winter wheat areas as of May 3.

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

High Inflation and the Fed’s rate hike path have fueled worries of a policy error

• The dollar showed little reaction on Friday to data showing U.S import prices
• The University of Michigan showed its reading of consumer sentiment for early May deteriorated
• Britain's pound edged up against the dollar on Friday, offering some respite from a week of selling

Forex market

The dollar slipped on Friday as a rally in equities contributed to a risk-on mood, but was still set for a sixth straight week of gains as investors remained concerned about slowing global growth and Federal Reserve policy tilting the United States into a recession. 

High inflation and the Fed's rate hike path have fueled worries of a policy error that could cause a recession or a stagflation scenario of slowing growth and high prices. Readings this week showed some signs that inflation was beginning to ebb, although at a slow pace. 

Economic Calendar

The dollar showed little reaction on Friday to data showing U.S. import prices were unexpectedly flat in April as a decline in petroleum costs offset gains in food and other products, a further sign that inflation has probably peaked. Other data from the University of Michigan showed its preliminary reading of consumer sentiment for early May deteriorated to its lowest level since August 2011 as concerns about inflation persisted. 

Even with the recent inflation readings, Cleveland Fed President Loretta Mester said it would need to move lower for "several months" before the Fed can safely conclude it has peaked, and she would be ready to consider faster rates hike by the September Fed meeting if the data do not show improvement. But the greenback weakened as equities rallied after a steep decline that recently put the S&P 500 on the cusp of confirming a bear market as investors looked for signs stocks had bottomed. 

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Investors have flocked to the safe haven on concerns about the Fed's ability to dampen inflation without causing a recession, along with worries about slowing growth arising from the Ukraine crisis and the economic effects of China's zero-COVID-19 policy amid rising infections. The single currency was on track for its fifth weekly drop in six and has been hurt by both fears resulting from Russia's invasion of Ukraine stymieing the economy and the dollar rally. 

The safe-haven yen has also begun to strengthen against the greenback and was on track for its first weekly gain versus the dollar after nine straight weeks of declines.

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Euro-EUR

The single currency was on track for its fifth weekly drop in six and has been hurt by both fears resulting from Russia's invasion of Ukraine stymieing the economy and the dollar rally. While the European Central Bank is widely anticipated to begin hiking rates in July, the central bank is expected to adopt a less aggressive pace than the Fed. Overall, the EUR/USD traded with a low of 1.0469 and a high of 1.0563 before closing the day around 1.0497 in the New York session.

Japanese Yen-JPY

The Japanese Yen has begun to strengthen against the greenback, and was on track for its first weekly gain versus the dollar after nine straight weeks of declines after the yen's slump to two-decade lows against the dollar has emerged as a source of concern for Japanese policymakers as it inflates already rising costs of fuel and raw material imports. Overall, the USD/JPY traded with a low of 128.32 and a high of 131.23 before closing the day around 130.82 in the U.S session.

British Pound-GBP

The British Pound edged up against the dollar on Friday, offering some respite from a week of selling that pushed the currency to two-year lows. Senior British politicians want to overhaul the agreement on trade between Northern Ireland and the United Kingdom that they signed up to in order to get Brexit done. Overall, the GBP/USD traded with a low of 1.2409 and a high of 1.2568 before closing the day at 1.2455 in the New York session.

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Canadian Dollar-CAD

The Canadian Dollar strengthened against its U.S counterpart on Friday as oil prices rose and Wall Street clawed back some recent losses, but the currency was on course to extend a string of weekly declines. The price of oil, one of Canada's major exports, rose as the prospect of a European Union ban on Russian oil offset worries about faltering global demand. Overall, USD/CAD traded with a low of 1.2788 and a high of 1.2877 before closing the day at 1.2805 in the New York session.

Australian Dollar-AUD

The Australian Dollar notched another week of heavy losses on Friday, as growth forecasts for China were downgraded and the yuan extended its decline. It was notable that the Aussie also slid against the yen, indicating the flight to safety was spreading wider. Adding to the pain was China's decision to limit unnecessary travel outside the country by its citizens. Overall, AUD/USD traded with a low of 0.6826 and a high of 0.6951 before closing the day at 0.6853 in the New York session.

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Euro-Yen EUR/JPY

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The Relative Strength Index is above 35 and lies below the neutral zone. In general, the pair has gained 1.25%.

Sterling-Yen GBP/JPY

Currently, GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 33 reading and lies below the neutral zone. On the whole, the pair has gained 1.16%.

Aussie-Yen AUD/JPY

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 36 reading and lies below the neutral region. In general, the pair has gained 1.45%.

Euro-Sterling EUR/GBP

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 58 and lies above the neutral region. Overall, the pair has gained 0.12%.

Sterling-Swiss GBP/CHF

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 50 and lies below the neutral region. In general, the pair has lost 0.42%.

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

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Surging inflation and rising interest rates are weighing on household spending

US stock market: The S&P 500 ended below 4,000 for the first time since late March 2021 and the NASDAQ dropped more than 4% on Monday in a selloff led by mega-cap growth shares as investors grew more concerned about rising interest rates. The NASDAQ closed at its lowest level since November 2020. Apple shares dropped 3.3% and were the biggest weight on the NASDAQ and the S&P 500. 

Microsoft Corp dropped 3.7% and Tesla Inc. fell 9.1%. Investors are worried about how aggressive the Federal Reserve will need to be too tame inflation. The U.S. central bank last week hiked interest rates by 50 basis points. Benchmark 10-year U.S Treasury yields hit their highest levels since November 2018 before easing on Monday. 

Economic Calendar

Markets are digesting the start of a return to a more normal monetary policy environment. Investors have also been worried about an economic slowdown in China following a recent rise in coronavirus cases. The S&P 500 is now down 16.3% for the year so far.

Dow Jones Industrial Average

The Dow Jones Industrial Average fell 0.26% to hit a new 52-week low. The biggest gainers of the session on the Dow Jones Industrial Average were Intel Corporation, which rose 2.18% or 0.94 points to trade at 44.01 at the close. Salesforce.com Inc. added 2.17% or 3.55 points to end at 167.15 and Microsoft Corporation was up 1.86% or 4.92 points to 269.50 in late trade. The biggest losers included International Business Machines, which lost 3.95% or 5.31 points to trade at 129.13 in late trade. JPMorgan Chase & Co declined 2.44% or 2.97 points to end at 118.89 and 3M Company shed 2.14% or 3.26 points to 149.12.

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NASDAQ 100

The NASDAQ index climbed 0.98%. The top performers on the NASDAQ Composite were Baosheng Media Group Holdings Ltd which rose 42.28% to 0.74, Appian Corp which was up 38.59% to settle at 59.62 and Vroom which gained 32.41% to close at 1.43. The worst performers were Embark Technology Inc. which was down 59.03% to 1.43 in late trade, Upstart Holdings Inc. which lost 56.42% to settle at 33.61 and Cipher Mining Inc. which was down 46.75% to 1.72 at the close.

Oil price - Crude Oil market, Brent Oil market

U.S crude oil price settled below $100 a barrel yesterday to its lowest level in two weeks as the demand outlook was pressured by coronavirus lockdowns in China and growing recession risks, while a strong dollar made crude more expensive for buyers using other currencies. U.S. West Texas Intermediate crude settled down $3.33, or 3.2%, to $99.76 a barrel, while Brent crude was down $3.48, or 3.28%, at $102.46 a barrel. 

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Wall Street's main indexes also turned lower in volatile trading on concerns over aggressive monetary policy tightening and slowing economic growth. Early in the session, comments from the Saudi and UAE energy ministers boosted Brent and WTI up by more than $1 a barrel. These are volatile times, the daily price bars are outsized these days as the EU continues to dither over whether or not they are going to embargo Russian oil, which changes the calculus very much as well in both directions. The EU Commission has delayed acting on the proposal.

Precious and Base Metals - Gold price, Silver price, Palladium price

Gold was down today morning in Asia, hitting its lowest level since February 11, as investors eyed the rising dollar and inflation data. Gold futures were down 0.22% to $1,836.96. The Dollar, which normally moves inversely to the gold, inched down on Wednesday morning, but the moves were small. The tightened policy to fight inflation from the U.S. Federal Reserve has fueled five weeks of gains for the dollar. 

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The Fed raised its interest rates to 1% last week. Fed officials on Tuesday reiterated their stance on the aggressive efforts to slow the fastest inflation in 40 years. “I know that families all across America are hurting because of inflation,” U.S. President Joe Biden said in a speech a day before the Consumer Price Index (CPI) came out. 

As investors expect additional increases of the same magnitude from the Fed, they await the U.S. Core CPI, due later in the day, for more clues on the Fed’s monetary policies. The forecasts prepared by Investing.com expected the figure to moderate but stay above 8%. According to the Westpac-Melbourne Institute index, Australia’s consumer sentiment released today fell 5.6% in May from April in the Asia Pacific. 

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Surging inflation and rising interest rates are weighing on household spending. In other precious metals, silver dipped by 0.1%. Platinum edged up 0.1%, while palladium fell 1.2%. Copper prices rose yesterday, helped by a slight pullback in the U.S. dollar, although worries over COVID-19 lockdowns in top metals consumer China and weaker global economic growth kept gains in check. 

We are seeing some bargain-hunting and a weak dollar (is) helping prices today after a massive sell-off in commodities. For base metals, fears of a slowdown in Chinese demand amid a resurgence of COVID-19 have damaged sentiment. However, demand is likely to improve once China emerges from lockdowns. The dollar USD eased after scaling a 20-year peak in the previous session, making greenback-denominated metals less expensive for buyers using other currencies.

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Traditional Agricultures - Corn futures, Wheat futures,  Soybean futures

Soybean futures edged up yesterday, a day after sliding on macroeconomic worries, as traders assessed U.S. planting progress. Wheat traded near even, pressured by recent rainfall.

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

Investors will be closely watching the April U.S consumer price index reading

• The dollar hovered near a two-decade high against major peers today in the Asian session
• Reading on inflation will provide a clue on how aggressive the Fed will be in tightening monetary policy
• The yen continued to get some respite from a pause in the rise in benchmark U.S Treasury yields

Forex market 

The dollar hovered near a two-decade high against major peers today, ahead of a key reading on inflation that should provide clues on how aggressive the Federal Reserve will be in tightening monetary policy. The dollar index, which measures the currency versus six rivals, slipped slightly to 103.81 but is still not far from the high of 104.49 reached at the start of the week for the first time since December 2002. 

The euro rose a touch to $1.05405 but has mostly traded sideways since plumbing a more than five-year low at $1.04695 at the end of last month. The yen continued to get some respite from a pause in the recent relentless rise in benchmark U.S. Treasury yields, trading little changed at 130.36 per dollar, after dipping to a more than the two-decade low of 131.35 on Monday. 

Economic Calendar

Investors will be closely watching the April U.S consumer price index reading later today for any sign’s inflation may be starting to cool, with expectations calling for an 8.1% annual increase compared with an 8.5% rise recorded in March. After the Fed raised its benchmark overnight interest rate by 50 basis points last week, the largest hike in 22 years, investors have been attempting to assess how aggressive the central bank will be. 

Markets are priced for another hike of at least 50 basis points at the central bank's June meeting. We remain of the view that the broad U.S dollar rise will continue as the Fed executes its 'super-tightening. Look for ongoing demand for (the dollar index) on dips, with 104 already being probed and still potential for a run towards 107 multi-weeks. 

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The greenback has climbed nearly 9% this year amid an increasingly hawkish Fed, as inflation burned hotter than policymakers had expected. Commonwealth Bank of Australia also sees the risk tilted to further gains from here. The USD's reaction to the CPI will be asymmetrical in our view. A positive surprise will encourage markets to increase pricing for a 75-basis point increase in the Funds rate later in the year and support the USD.

Euro-EUR

The single currency steadied despite the dollar hovering near a two-decade high against major peers today. The euro rose a touch to $1.05405 but has mostly traded sideways since plumbing a more than five-year low at $1.04695 at the end of last month. The greenback has climbed nearly 9% this year amid an increasingly hawkish Fed. Overall, the EUR/USD traded with a low of 1.0469 and a high of 1.0563 before closing the day around 1.0497 in the New York session.

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Japanese Yen-JPY

The Japanese Yen continued to get some respite from a pause in the recent relentless rise in benchmark U.S Treasury yields after dipping to a more than the two-decade low of 131.35 on Monday. The Bank of Japan has no plan to allow long-term interest rates to move more widely around its 0% target to stem sharp falls in the yen. Overall, the USD/JPY traded with a low of 128.32 and a high of 131.23 before closing the day around 130.82 in the U.S session.

British Pound-GBP

The British Pound has shown itself to be weak yet again during yesterday’s trading session. Britain is on course to enter a technical recession in the second half of this year and faces a big hit to living standards from surging prices, an economic think-tank said today. The NIESR forecast gross domestic product will fall by 0.2% in the third quarter. Overall, the GBP/USD traded with a low of 1.2409 and a high of 1.2568 before closing the day at 1.2455 in the New York session.

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Canadian Dollar-CAD

The Canadian Dollar weakened to its lowest level in 18 months against its U.S counterpart yesterday as oil prices fell and recent volatility in global equity markets continued. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to the outlook for the global economy. U.S. crude prices settled 3.2% lower. Overall, USD/CAD traded with a low of 1.2788 and a high of 1.2877 before closing the day at 1.2805 in the New York session.

Australian Dollar-AUD

The Australian Dollar tried to nudge higher as Chinese CPI came in at 2.1% year-over-year to the end of April against 1.8% forecast and March’s print of 1.5%. PPI came in at 8.0%, instead of 7.8% expected and 8.3% previously. This presents a conundrum for policymakers that are trying to stimulate growth while seeking to contain price pressures. Overall, AUD/USD traded with a low of 0.7358 and a high of 0.7416 before closing the day at 0.7410 in the New York session.

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Euro-Yen EUR/JPY

EUR/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also issuing a bullish stance. The Relative Strength Index is above 61 and lies above the neutral zone. In general, the pair has gained 1.25%.

Sterling-Yen GBP/JPY

Currently, GBP/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 60 reading and lies above the neutral zone. On the whole, the pair has gained 1.16%.

Aussie-Yen AUD/JPY

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 76 reading and lies above the neutral region. In general, the pair has gained 1.45%.

Euro-Sterling EUR/GBP

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 53 and lies below the neutral region. Overall, the pair has gained 0.12%.

Sterling-Swiss GBP/CHF

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 45 and lies below the neutral region. In general, the pair has lost 0.42%.

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.