Search LOGIN

S&P 500 enters bear market

“The most dangerous poison is the feeling of achievement. The antidote is to every evening think what can be done better tomorrow.” — Ingvar Kamprad 

 

 

HEADLINES

 

 

  • Sterling set for its biggest weekly rise since Dec 2020 vs dollar
  • Gold flat; set for first weekly gain in five as dollar falls
  • Oil steadies as supply risks encounter economic headwinds
  • Stocks fall into bear market with S&P 500 now off 20% from record
  • EUR/USD could reach the 1.0650/70 area over the coming days – ING
  • EURUSD Short Term: Upside favored

 

 

FOREX

 

Sterling set for its biggest weekly rise since Dec 2020 vs dollar

 

Sterling was set for its biggest weekly gain since December 2020 against a weakening dollar as the latest economic data suggested the market might not need to scale back its expectations for Bank of England rate hikes much further.

The U.S. dollar was headed for its worst week since early February, showing fatigue after the currency's breathless 10%, 14-week surge.

On Friday, the pound was down flat against the dollar at $1.246, after rising 1.65% this week - the biggest weekly gain since the 2.3% in the week ending Dec 18, 2020.

 

 

COMMODITIES

 

Gold flat; set for first weekly gain in five as dollar falls

 

Gold was flat on Friday but prices were still set for their first weekly gain since mid-April.

Spot gold was flat at $1,843.12 per ounce, tracking a slight uptick in the dollar on the day. U.S. gold futures were flat at $1,841.7. Meanwhile, the dollar receded from two-decade highs amid mounting concerns over U.S. economic growth revived safe-haven demand.

Gold prices have climbed about 1.5% this week.

 

 

ENERGY

 

Oil steadies as supply risks encounter economic headwinds

 

Oil prices steadied on Friday, setting them on course for little change on the week, as a planned European Union ban on Russian oil balanced demand concerns over slowing economic growth.

The more actively traded WTI contract for July was down 14 cents at $109.75 a barrel.

The EU is hoping to clinch a deal on a proposed ban of Russian crude imports which includes carve-outs for EU states most dependent on Russian oil such as Hungary.

 

 

STOCKS

 

Stocks fall into bear market with S&P 500 now off 20% from record

 

Rising recession fears pushed U.S. stocks into a bear market on Friday with the S&P 500′s decline from its all-time high in January now reaching 20%.

The S&P 500 dropped 2% on Friday, putting the benchmark for U.S. stocks 20.7% below its intraday record reached in January. The index is now headed for a close that’s more than 20% below its January record closing level as well.

So to most on Wall Street, this is now the first bear market to hit since the rapid decline in March 2020 at the onset of the pandemic.

Now that the S&P 500 is down 20% from its highs, that puts the start of the bear market at early January.

 

 

ANALYSIS

 

EUR/USD could reach the 1.0650/70 area over the coming days – ING 

 

“The market now prices a 31/32bp ECB rate hike at the 21 July ECB meeting – pricing which has plenty of scope to bounce between +25bp and +50bp over the next two months. This could drag EUR/USD back to the 1.0650/70 area over the coming days – helped by brief periods of calm in the external environment – but we would see this as a bear market bounce.” 

“Our core EUR/USD view for 2H22 is one of heightened volatility and probably EUR/USD getting close to parity in 3Q22 when expectations of the Fed tightening cycle could be at their zenith.”

 

 

CHART

 

EURUSD Short Term: Upside favored

Technical View: Long position above 1.0505. Target 1.0615. Conversely, break below 1.0505, to open 1.0465.

Comments: The pair is expected to resume advance after correction.

 

Source: Trading Central 

 

 

CALENDAR

*Times in GMT

 

 

Source: FX Street Economic Calendar

 

SOURCES

https://www.reuters.com/markets/europe/sterling-set-its-biggest-weekly-rise-since-dec-2020-vs-dollar-2022-05-20/
https://www.cnbc.com/2022/05/20/gold-markets-dollar-economic-growth-federal-reserve-interest-rate.html
https://www.cnbc.com/2022/05/20/oil-markets-china-covid-lockdown-inflation-central-bank.html
https://www.cnbc.com/2022/05/19/stock-market-futures-open-to-close-news.html
https://www.fxstreet.com/news/eur-usd-could-reach-the-10650-70-area-over-the-coming-days-ing-202205200651

UNLIMITED ACCESS!

The best way to keep track of your accounts. Get notifications
and access your dashboard any time!

Open a live or demo account, make secure deposits or get latest
market updates for free!