Market Highlights
1 - Rising yields support USD. USDX +0.38%, EUR -0.44%, GBP -0.25%, AUD -0.88%, JPY +0.14%
2 - US stock markets down on the day. S&P -0.67%, DJ -0.65%, NASDAQ -0.84%
3 - European indices close higher, led by DAX +0.38%, FTSE +0.10%
4 - Gold loses $96 at $4485; Bitcoin unchanged with limited activity at $76.8K
5 - Brent continues to hover close to $110 in a nervous market as the straits remain closed and US continues to threaten military action
Daily Price Activity
Insights
USD INDEX Business as usual - Buyers wiped out yesterday’s one-day retracement as demand for the world’s global currency continues. Oil and geopolitical tensions lifting inflation concerns and adding to a hawkish Fed mood. Yields surging. Buyers will aim for the 100.00 mark while sellers look below the 99.000 level. Resistance at 99.38 with support at 98.91.
S&P 500 Investors noting that interest rates may stay higher for longer, and appear ready for a bout of profit-taking following the record highs set last week. Risk-off theme started last week Friday and is picking up steam with a 3rd consecutive lower high and lower low adding to the downtrend. Resistance at 7443 with support at 7352.
GOLD The traditional inverse relationship between strong USD and weak gold playing out in classic style. Risk-off as sellers broke below the $4500 mark with buyers remaining on the sidelines. With US yields rising sharply (notably longer 10yr and 30 yr) the safe-haven commodity recorded a red candlestick for the 5th of past 6 trading days. Resistance at $4588 with support at $4465.
BRENT OIL Geopolitical conflict dictates the higher prices. The US continues to threaten aggressive military action, while for practical purposes, the straits remain closed. That’s enough to keep prices elevated and continuing to hover close to the $110 level - the new dividing line. While supply and production concerns remain the focus, the forward- looking oil market continues to be pessimistic with little to incentivize sellers. Resistance at $111.49 with support at $108.87.
BITCOIN A stand-off with neither buyers or sellers making a move in either direction. The downtrend continues with sellers maintaining control. Attempted rallies to test the $78 level continue to be guarded by sellers. At the same time buyers protect the $76 support, and hence trading activity is confined to a narrow $1.5K trading range. Trend, bias and sentiment all pointed lower, for now. Once again we see BTC is not considered a safe-haven in terms of liquidity or geopolitical concerns, and for now fits firmly into the risk-off asset class. Resistance at 477.6K with support at 476K.
FX Pivot Levels
