EURUSD dips from 1-month high

 

“Some people dream of success, while other people get up every morning and make it happen.” — Wayne Huizenga 

 

 

HEADLINES

 

Dollar rises against euro, hits two-week high versus yen 

Gold edges up from 2-week low as inflation worries persist

Oil rises as EU to phase in Russian oil ban, Shanghai ends lockdown

Global equities fall, dollar rises amid positive U.S. economic data

GBP/USD: Bullish picture looks weaker, but with a still broadly positive trajectory – Scotiabank

AUDUSD Near Term: Upside favored

 

 

FOREX

 

 

CURRENCIES

 

 

Dollar rises against euro, hits two-week high versus yen 

 

 

The euro edged further away from a monthly high on Wednesday and the U.S. dollar nudged higher, lifted by higher Treasury yields as global inflation worries flared anew. 

The dollar index, which measures the currency against six major peers, including the euro, rose 0.2% to 101.96, extending Tuesday’s gains, when data showed euro zone consumer inflation soaring to a record.

The euro was down 0.2% against the greenback, continuing to edge back from a one-month high of $1.0787, reached on Monday, when national inflation readings from the euro zone indicated a high print for the bloc.

 

 

COMMODITIES

 

 

Gold edges up from 2-week low as inflation worries persist 

 

 

Gold prices inched up from a two-week low on Wednesday, supported by worries over rising inflation, although a stronger dollar and rising U.S. yields kept gains in check. 

However, making gold more expensive for holders of other currencies, the dollar index gained 0.3%, while U.S. Treasury yields also rose.

 

 

ENERGY

 

 

Oil rises as EU to phase in Russian oil ban, Shanghai ends lockdown 

Oil prices strengthened on Wednesday after European Union leaders agreed to a phased ban on Russian oil and as China ended its COVID-19 lockdown in Shanghai, which could bolster demand in an already tight market. 

Oil benchmarks have marched steadily higher for several weeks as Russian shipments are squeezed by EU and U.S. sanctions and as India and China can only buy so much from Russia, the world's largest exporter of crude and fuel.

 

 

STOCKS

 

 

Global equities fall, dollar rises amid positive U.S. economic data 

Global equities fell and the U.S. dollar advanced on Wednesday after stronger-than-expected economic data helped assuage concerns of high inflation and an impending recession driven partly by rising oil prices. 

On Wall Street, all three main indexes were trading lower, driven by stocks in the financials, healthcare, technology and consumer discretionary sectors.

 

 

ANALYSIS

 

 

GBP/USD: Bullish picture looks weaker, but with a still broadly positive trajectory – Scotiabank 

“The pound’s failure to extend its rally past the mid-1.26s over the past few days and a break under its upward-sloping trendline since mid-May leaves the GBP-bullish picture looking weaker, but with a still broadly positive trajectory.”

“Resistance is ~1.2630 followed by firmer at 1.2660/70 (the Fri and Mon highs) and then the big figure.”

“The mid-1.25 area is support followed by the big figure zone.” 

 

 

CHART

 

 

AUDUSD Near Term: Upside favored

Technical View: Long position above 0.7035. Target 0.723. Conversely, break below 0.7035, to open 0.6975.

Comments: The pair hits resistance and reverses.

 

 

 

 

Source: Trading Central 

 

 

CALENDAR

 

 

*Times in GMT

 

 

 

 

Source: FX Street Economic Calendar

 

 

Footnotes
https://www.cnbc.com/2022/06/01/forex-markets-dollar-treasury-yield-federal-reserve-inflation.html
https://www.cnbc.com/2022/06/01/gold-markets-us-treasury-yields-dollar.html
https://www.reuters.com/markets/commodities/oil-prices-open-higher-eu-russian-oil-ban-end-shanghai-lockdown-2022-06-01/
https://www.reuters.com/markets/europe/global-markets-wrapup-1-2022-06-01/
https://www.fxstreet.com/news/gbp-usd-bullish-picture-looks-weaker-but-with-a-still-broadly-positive-trajectory-scotiabank-202206011337