Stocks finish rocky session off the lows

HEADLINES

 

 

 

• Dollar rises on U.S. interest rate hike optimism
• Powell, Brainard hearings may spotlight inflation risks, broader Fed debates
• British Pound Fails at 200 Day EMA
• Gold finishes slightly higher, but settles below $1,800 for a third straight session
• Oil Drops Alongside Broader Market Slump and Stronger Dollar
• Stocks Come Off Day’s Lows as Dip Buyers Resurface: Markets Wrap

 

 

 

FOREX

 

 

 

Dollar rises on U.S. interest rate hike optimism

 

The dollar edged higher against a basket of currencies on Monday as recent employment data prompted some Wall Street banks to raise their estimates for how quickly the Federal Reserve will raise interest rates this year. The dollar was supported by Friday's closely watched employment report which suggested the U.S. job market was at or near maximum employment.

 

Powell, Brainard hearings may spotlight inflation risks, broader Fed debates

 

A U.S. Senate committee holds hearings this week for Federal Reserve Chair Jerome Powell and vice chair nominee Lael Brainard that could provide new details about the U.S. central bank's plans to tighten monetary policy, but also kick off a broader debate in coming weeks about its role in addressing issues as disparate as climate change and racial inequality.

 

British Pound Fails at 200 Day EMA

 

The British pound initially tried to rally during the trading session on Monday but gave back gains as the 200 day EMA seems to be offering a significant barrier. Because of this, it looks as if the market might try to reach back towards the 1.35 handle.

 

 

 

COMMODITIES

 

 

 

Gold finishes slightly higher, but settles below $1,800 for a third straight session

 

Gold finishes Monday with a modest gain, finding support after notching the sharpest weekly slump since late November, but prices still mark a third straight settlement below the key $1,800 mark. With a slight recovery in the U.S. dollar, slightly higher U.S. Treasury yields and a “good measure of risk off flowing from commodities and global equities,” gold saw “technical and fundamentals resistance at the $1,800 level to start the new trading week.”

 

Oil Drops Alongside Broader Market Slump and Stronger Dollar

 

Oil fell for a second session, hit by risk averse sentiment across asset classes and as traders weighed the impact of coronavirus outbreaks in China.

West Texas Intermediate futures in New York closed 0.9% lower, as a stronger dollar reduced the appeal of commodities priced in the currency. Investors also focused on China, which is continuing to battle Covid-19 outbreaks. Restoration of oil production in both Libya and Kazakhstan added to the downward pressure.

 

 

 

STOCKS

 

 

 

Stocks Come Off Day’s Lows as Dip Buyers Resurface: Markets Wrap

 

Stocks pared losses that topped 2% as dip buyers emerged to blunt a five-day selloff -- the longest losing streak since September.

The S&P 500 was down less than 1%, buoyed by signs that the omicron coronavirus variant may be peaking in New York. The Nasdaq 100 cut its losses after heavy selling that drove the gauge of giants like Apple Inc. and Microsoft Corp. down as much as 8.5% below its November record. Investors have been on edge as the Federal Reserve prepares to raise rates and the resurgent virus threatens economic growth.

 

 

 

CHART

 

 

 

US dollar / Canadian dollar – Daily Candlesticks

Source: GKFX Prime Metatrader 4

USD/CAD has formed a potential head and shoulders reversal pattern underneath long term resistance near 1.30. - Prepared by Trading Writers*

 

 

 

CALENDAR

 

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

 

SOURCE

 

 

 

https://www.fxstreet.com/economic-calendar
https://finance.yahoo.com/news/forex-dollar-rises-u-interest-203426844.html?.tsrc=fin-srch
https://finance.yahoo.com/news/powell-brainard-hearings-may-spotlight-185848945.html
https://finance.yahoo.com/news/gbp-usd-price-forecast-british-143919483.html?.tsrc=fin-srch
https://finance.yahoo.com/m/345d07fd-9b5a-314e-a4b8-1667e23f1c23/gold-finishes-slightly.html?.tsrc=fin-srch
https://finance.yahoo.com/news/oil-declines-supply-interruptions-fade-234659736.html?.tsrc=fin-srch