„As long as it takes“ will Deutschland die Ukraine militärisch unterstützen, sagt Verteidigungsminister Pistorius. Er kündigte unter anderem weitere Panzer für die Ukraine an.He doesn’t really want to give much away but as things stand, markets are voting that they can afford one more rate hike in June to come. After that, it will be quite dependent on the upcoming economic data from the UK in the weeks ahead.
This article was written by Justin Low at www.forexlive.com.
Markets:
It was a relatively quiet session as markets continue to trudge along after the US CPI data earlier this week. The prevailing narrative i.e. major central banks likely to pause their respective tightening cycles, is still the key theme but the economic releases this week isn’t adding or subtracting from that in the past few days.
The dollar remains steady with EUR/USD down 0.2% to 1.0890 as sellers try to test waters below the 1.0900 mark. Meanwhile, GBP/USD is up 0.1% to 1.2525 and staying little changed in general as UK Q1 GDP meets estimates.
The greenback is seen firmer slightly against the yen with USD/JPY up 0.2% to 134.80, with higher yields helping. Elsewhere, the antipodeans are lagging with NZD/USD down over 1% to 0.6225 after a plunge back below its 100-day moving average as the downside momentum gathers following softer RBNZ inflation expectations earlier today.
In other markets, equities are holding some optimism towards the end of the week but European indices are more or less closing the week where they started. In the commodities space, gold is trading lower and eyeing a test of the $2,000 mark again with silver down over 1% again after its sharp fall yesterday.
This article was written by Justin Low at www.forexlive.com.
On the daily chart below for the
Nasdaq, we can see that the price is breaking above the key 12274 resistance, but the question now is whether
or not the buyers will be able to sustain it. The recent economic data has been
giving conflicting signals, but the market seems to be leaning on the
goldilocks scenario where the labour market remains resilient as shown by the
strong NFP report recently and inflation
slowly moderates towards the target as shown by the recent CPI coming in at 4.9% Y/Y. The big bullish
flag is still valid and if the buyers manage to sustain the breakout, the
target would be the 13000 level. A fakeout wouldn’t be good news, but the
sellers have more work to do before getting full control.
Nasdaq
technical analysis
On the 4 hour chart below, we can
see that the price has been ranging just beneath the key resistance for over a
month with just one failed probe at the end of April. This breakout is
significant but unfortunately it is not sustained by a fundamental catalyst as
the big miss in Jobless
Claims yesterday should make the market worry about a deterioration in the
labour market. Today we have the University of Michigan consumer
sentiment report and the market is likely to focus on the inflation expectations
figures as those ticked up considerably recently.
On the 1 hour chart below, we can
see more closely the range and the recent breakout. The buyers may pile in
again if the price pulls back to the broken top of the range. The sellers, on
the other hand, will want to see the price falling below the 12172 swing level
to start positioning for another possible selloff towards the bottom of the
channel.
This article was written by ForexLive at www.forexlive.com.