– Recession fears sink commodity costs
– FOMC minutes due this afternoon
– US greenback consolidating yesterday’s positive factors
USDCAD Snapshot open 1.3037-41, in a single day vary 1.3014-1.3063, shut 1.3030, WTI oil $100.19, Gold $1764.10
The Canadian greenback is beneath stress. A wave of recession fears rippled by means of markets yesterday, sparking safe-haven demand for US {dollars} whereas knocking commodity costs for a loop.
Bond merchants concern a US recession is imminent and do not consider that the Fed has any hope of engineering a soft-landing. They bought bonds which drove the US 10-year Treasury yield all the way down to 2.79% from 2.98% yesterday. The ten-year yield traded sideways round 2.81% in a single day.
Plunging Treasury yields attributable to recession fears fueled a free-fall in oil costs. West Texas Intermediate (WTI) fell 12.2% on Tuesday after which spent the in a single day session consolidating in a $99.13/barrel-$102.11 /b vary.
The oil value plunge seems overdone, particularly contemplating that every one the elements that drove costs north of $12.0/b in June are nonetheless in place. Opec says they’re growing manufacturing, however the cartel has failed to attain earlier manufacturing enhance ranges. The sanctions towards Russian oil aren’t going wherever, and Libya’s political uncertainty is hampering manufacturing in that nation.
In the meantime, China continues to ease its means out of Covid restrictions, supporting demand.
USDCAD rallied from 1.2842 to 1.3078 on Tuesday, then consolidated these positive factors in a 1.3014-1.3063 vary in a single day. The quick time period technical image helps the next USDCAD, however there may be vital resistance within the 1.3080 space. A failure to interrupt above the highest, adopted by a drop under 1.2950, suggests additional 1.2840-1.3080 consolidation.
The minutes from the FOMC assembly of June 15 are launched at present. Merchants will examine them for clues in regards to the Committee’s views on recession dangers.
EURUSD is beneath stress.
Costs fell from 1.0450 Tuesday and hit 1.0187 in NY buying and selling at present. Costs are weighed down by rising fears of a extreme Eurozone recession because of the Russia and Ukraine conflict, which suggests ECB charges can’t rise very excessive. The EURUSD technicals are concentrating on 1.000.
GBPUSD is on the backside of its 1.1892-1.1988 vary attributable to UK political turmoil and the Financial institution of England’s damaging financial outlook. The GBPUSD technicals are bearish and goal 1.1500.
USDJPY traded with a damaging bias in a 135.03-135.87 vary because of safe-have demand for yen and decrease Treasury yields.
AUDUSD and NZDUSD are affected by weaker commodity costs and damaging danger sentiment.
As we speak’s US information contains ISM Providers PMI for June and the JOLTS job openings survey.
– Recession fears sink commodity costs
– FOMC minutes due this afternoon
– US greenback consolidating yesterday’s positive factors
USDCAD Snapshot open 1.3037-41, in a single day vary 1.3014-1.3063, shut 1.3030, WTI oil $100.19, Gold $1764.10
The Canadian greenback is beneath stress. A wave of recession fears rippled by means of markets yesterday, sparking safe-haven demand for US {dollars} whereas knocking commodity costs for a loop.
Bond merchants concern a US recession is imminent and do not consider that the Fed has any hope of engineering a soft-landing. They bought bonds which drove the US 10-year Treasury yield all the way down to 2.79% from 2.98% yesterday. The ten-year yield traded sideways round 2.81% in a single day.
Plunging Treasury yields attributable to recession fears fueled a free-fall in oil costs. West Texas Intermediate (WTI) fell 12.2% on Tuesday after which spent the in a single day session consolidating in a $99.13/barrel-$102.11 /b vary.
The oil value plunge seems overdone, particularly contemplating that every one the elements that drove costs north of $12.0/b in June are nonetheless in place. Opec says they’re growing manufacturing, however the cartel has failed to attain earlier manufacturing enhance ranges. The sanctions towards Russian oil aren’t going wherever, and Libya’s political uncertainty is hampering manufacturing in that nation.
In the meantime, China continues to ease its means out of Covid restrictions, supporting demand.
USDCAD rallied from 1.2842 to 1.3078 on Tuesday, then consolidated these positive factors in a 1.3014-1.3063 vary in a single day. The quick time period technical image helps the next USDCAD, however there may be vital resistance within the 1.3080 space. A failure to interrupt above the highest, adopted by a drop under 1.2950, suggests additional 1.2840-1.3080 consolidation.
The minutes from the FOMC assembly of June 15 are launched at present. Merchants will examine them for clues in regards to the Committee’s views on recession dangers.
EURUSD is beneath stress.
Costs fell from 1.0450 Tuesday and hit 1.0187 in NY buying and selling at present. Costs are weighed down by rising fears of a extreme Eurozone recession because of the Russia and Ukraine conflict, which suggests ECB charges can’t rise very excessive. The EURUSD technicals are concentrating on 1.000.
GBPUSD is on the backside of its 1.1892-1.1988 vary attributable to UK political turmoil and the Financial institution of England’s damaging financial outlook. The GBPUSD technicals are bearish and goal 1.1500.
USDJPY traded with a damaging bias in a 135.03-135.87 vary because of safe-have demand for yen and decrease Treasury yields.
AUDUSD and NZDUSD are affected by weaker commodity costs and damaging danger sentiment.
As we speak’s US information contains ISM Providers PMI for June and the JOLTS job openings survey.
