Spreadex Market Update
All Eyes on Today’s US GDP Following Hawkish FOMC Minutes
Key Factors for Today
- USD Ends the week under pressure
- NFPs in Focus
- Equities rebound on softer USD
- Gold, silver and oil rally on USD weakness
Coming Up
- USD PCE Index
- USD trade data
- USD Revised UoM sentiment
US Dollar Falls Following GDP Miss
The US Dollar sank further across late Asian and early European trading on Friday. A weaker than expected set of US GDP figures for last quarter have re-focused the market on US recessionary fears. While the Fed has reaffirmed its commitment to tightening monetary policy, a weaker than expected GDP result has put the focus on recessionary concerns. Looking ahead today, focus will be on the NFP result which will no doubt have big impact on USD should we see any surprise results.
Risk Sentiment Rebounds on USD Weakness
Equities markets took their que from a weaker US Dollar. Risk sentiment rebounded strongly as optimism regarding China re-opening took hold. China announced that Shanghai will come out of lockdown on June 1st, reviving demand expectations for the second largest global economy.
GBP Rallies on BOE Rate Hike Expectations
In FX, GBP continues to rally on the back of yesterday’s government fiscal stimulus package. With costs rising for UK consumers, the UK government announced a more than £10 billion fiscal stimulus to help support the economy.
Gold & Silver Fall Back
Precious metals have come under selling pressure again today. Both gold and silver are offered across the European open on Thursday. Despite a weaker USD, metals prices have come under pressure from falling prices.
Oil Prices End the Week At Highs
Crude oil prices remain mostly flat across the European session on Friday. The market remains sensitive to any new headlines regarding flow. However, with a deal on proposed EU/Russian flow the main focus, we can expect further volatility heading into next week’s EU summit meeting.
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