18 May Firm yields underpin the US$, weigh on stocks. Japan CPI ahead in an otherwise empty calendar.

By | May 18, 2018

 

With US yields heading higher (US10Y; 3.11%) on Thursday, and some solid Fed data too, (Philadelphia Fed Mfg Survey +34.4 vs expected 21.1), the dollar has remained underpinned, with US$Jpy looking particularly strong. Stock markets are slightly lower, under pressure from the firm yields while the metals are unchanged. WTI settled pretty much unchanged on Thursday, after briefly making a new trend high of  72.33. but remained on track for a weekly gain amid expectations U.S. sanctions on Iran would cut global crude supplies, extending the rally in oil prices.

In other data on Thursday, the US initial jobless claims rose 11k to 222k in the week ended May 12, slightly above expectation of 215k while the 4 week moving average dropped 2.75k to 213.25k, the lowest since December 1969.

Friday will be rather thin for data. Japan will kick things off with the CPI for April after which the only excitement in Europe will come via the German Wholesale Price Index/PPI for April and the EU Current Account for March. The US will have a couple of Fed speakers; Kaplan/Brainard but that is it so it may be a quiet session unless political events intervene. Have a good weekend.

CURRENCIES
EURUSD: 1.1796
Res  1.1820  1.1855  1.1875
Sup  1.1785  1.1765  1.1735
USDJPY: 110.76
Res  110.85  111.45  111.20
Sup  110.50  110.20  110.00
GBPUSD: 1.3513
Res  1.3525  1.3550  1.3570
Sup  1.3495  1.3475  1.3450
USDCHF: 1.0015
Res  1.0040  1.0055  1.0070
Sup  0.9990  0.9975  0.9955
AUDUSD: 0.7510
Res  0.7520  0.7545  0.7565
Sup  0.7500  0.7475  0.7445
NZDUSD: 0.6877
Res  0.6900  0.6915  0.6935
Sup  0.6870  0.6850  0.6830
INDICES / COMMODITIES
S&P: 2718
Res  2730  2745  2765
Sup  2700  2680  2650
DJ30: 24704
Res  24765  24875  24975
Sup  24615  24455  24320
SPI200: 6118
Res  6125  6135  6155
Sup  6095  6080  6060
XAUUSD: 1291
Res  1295  1300  1305
Sup  1285  1280  1275
XAGUSD: 16.42
Res  16.50  16.65  16.80
Sup  16.25  16.05  15.90
WTI: 71.65
Res  72.30  73.00  74.00
Sup  71.10  70.25  69.55