Spreadex Market Update
Tech Stocks Retreat as Market Quiets Down
US Equities Pulled off Highs, Led by Nasdaq
US stocks, especially in the tech-heavy Nasdaq, retreated as they entered the pre-earnings season blackout for buybacks. The convergence of harsh rhetoric from the Federal Reserve, quarter-end rebalancing, and concerns over recent price movements contributed to the pullback. The Nasdaq, which had enjoyed eight consecutive weeks of growth, experienced a drop, adding weight to the take-profit narrative.
German Ifo Shows Worst Result Since Last November
Germany's influential Ifo Business Climate survey disappointed investors, revealing a significant decline from 91.7 to 88.5, well below the expected 90.6. Moreover, the Expectations survey also fell, registering 83.6 compared to the anticipated 88.1. Weakness in industrial orders and falling backlogs, coupled with tightening global monetary policy, dampened demand. Despite these factors, the EUR/USD remained steady during the slow session, hovering around major levels at $1.0957 and $1.0866.
US Manufacturing Improves but Below Expectations
The US Dallas Fed Manufacturing Activity index showed a slight improvement, albeit remaining below expectations at -23.2, compared to the forecast of -20.2. While the wages index continued to rise, indicating persisting inflationary pressures, the drop in new orders offset the positive developments. The USD/JPY pair maintained its position below 143.86, with potential breakout levels at 144.00 and 142.32.
PBOC Steps in to Prop Up Yuan
Chinese state-run banks selling USD in the offshore market to support the currency caught attention, leading to a boost in the Australian dollar. The People's Bank of China (PBOC) unexpectedly set a strong yuan reference rate, and Chinese Premier Li Qiang reaffirmed the country's commitment to achieving a 5.0% annual growth target. Moreover, Q2 growth was anticipated to outpace Q1, and new measures to expand domestic demand were set to be announced. As a result, the AUD/USD climbed by 0.66% early Tuesday, with bulls aiming to breach the $0.6750 level, while $0.6675 could act as daily support.
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RECENT POSTS
US Equities Pulled off Highs, Led by Nasdaq
US stocks, especially in the tech-heavy Nasdaq, retreated as they entered the pre-earnings season blackout for buybacks. The convergence of harsh rhetoric from the Federal Reserve, quarter-end rebalancing, and concerns over recent price movements contributed to the pullback. The Nasdaq, which had enjoyed eight consecutive weeks of growth, experienced a drop, adding weight to the take-profit narrative.
German Ifo Shows Worst Result Since Last November
Germany's influential Ifo Business Climate survey disappointed investors, revealing a significant decline from 91.7 to 88.5, well below the expected 90.6. Moreover, the Expectations survey also fell, registering 83.6 compared to the anticipated 88.1. Weakness in industrial orders and falling backlogs, coupled with tightening global monetary policy, dampened demand. Despite these factors, the EUR/USD remained steady during the slow session, hovering around major levels at $1.0957 and $1.0866.
US Manufacturing Improves but Below Expectations
The US Dallas Fed Manufacturing Activity index showed a slight improvement, albeit remaining below expectations at -23.2, compared to the forecast of -20.2. While the wages index continued to rise, indicating persisting inflationary pressures, the drop in new orders offset the positive developments. The USD/JPY pair maintained its position below 143.86, with potential breakout levels at 144.00 and 142.32.
PBOC Steps in to Prop Up Yuan
Chinese state-run banks selling USD in the offshore market to support the currency caught attention, leading to a boost in the Australian dollar. The People's Bank of China (PBOC) unexpectedly set a strong yuan reference rate, and Chinese Premier Li Qiang reaffirmed the country's commitment to achieving a 5.0% annual growth target. Moreover, Q2 growth was anticipated to outpace Q1, and new measures to expand domestic demand were set to be announced. As a result, the AUD/USD climbed by 0.66% early Tuesday, with bulls aiming to breach the $0.6750 level, while $0.6675 could act as daily support.
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