22 May: US$ reverses from multi month highs, Stocks, WTI higher as positive risk sentiment builds. UK IRH today.

By | May 22, 2018

 

Stocks are higher while the US$ is mixed following the comments at yesterday’s market open from US Treasury Secretary Mnuchin, who said that  China will agree to further trade talks, easing fears of a trade war. The main beneficiaries have been the  Aud$ and the NZ$, while the Yen has been under some pressure, and Sterling has under-performed again as traders prepared for a heavy data load this week that could determine whether the BOE raises interest rates in 2018. US Yields are more or less unchanged while the metals are a little higher. WTI also settled higher as geopolitical uncertainty rose after weekend elections in Venezuela, viewed as illegitimate, and raised the prospect of US sanctions on the country’s exports. The chance of further US sanctions on Iran also underpinned the price of oil, which rose by 1.3% on the day.

Tuesday looks like being a very quiet one with virtually no data at all, although Cable may see some action following the Inflation Report Hearing, with testimony from Carney/Vieghle et al on the MPC committee, and the PSNBR. The BuBa Monthly Report is also due. Otherwise it would seem to be politics that dominate today’s agenda, with traders more likely looking towards tomorrows FOMC Minutes.

CURRENCIES
EURUSD: 1.1795
Res  1.1800  1.1820  1.1835
Sup  1.1765  1.1740  1.1715
USDJPY: 110.96
Res  111.20  111.85  111.40
Sup  110.80  110.60  110.40
GBPUSD: 1.3432
Res  1.3440  1.3460  1.3480
Sup  1.3415  1.3395  1.3370
USDCHF: 0.9964
Res  0.9985  1.0000  1.0015
Sup  0.9955  0.9935  0.9910
AUDUSD: 0.7586
Res  0.7605  0.7620  0.7640
Sup  0.7565  0.7540  0.7515
NZDUSD: 0.6956
Res  0.6980  0.7000  0.7030
Sup  0.6920  0.6885  0.6850
INDICES / COMMODITIES
S&P: 2731
Res  2740  2755  2770
Sup  2725  2715  2700
DJ30: 25004
Res  25080  25175  25380
Sup  24850  24740  24600
SPI200.fs: 6081
Res  6090  6100  6115
Sup  6070  6055  6035
XAUUSD: 1293
Res  1295  1300  1305
Sup  1290  1285  1280
XAGUSD: 16.51
Res  16.55  16.65  16.80
Sup  16.35  16.20  16.05
WTI: 72.52
Res  72.70  73.80  75.00
Sup  71.85  71.05  70.25