America roundup: Dollar dips to end trading week but expected to post weekly gain, Wall Street rallies, gold tumbles, oil jumps 4% as oil prices gasoline in the United States reaches an all-time high – May 14, 2022

Market overview

• US Import Price Index April (monthly) 0.0%, 0.6% forecast, 2.6% previous

• US Export Price Index in April (monthly) 0.6%, 0.7% forecast, 4.5% previous

• New motor vehicle sales in Canada (monthly) 144.6%, previous 103.0%

• United States May Michigan 5-year inflation expectations 3.00%, previous 3.00%

• US May Michigan Consumer Sentiment 5.4%, 64.0 forecast, 65.2 previous

• United States May Michigan Consumer Expectations 56.3, 63.0 forecast, 62.5 previous

• Current Michigan conditions in May in the United States 70.5 forecast, 69.4 previous

• American oil rig Baker Hughes has 563, 557 previous

• USUS Baker Hughes Total Rig Count 714, previous 705

Future Outlook – Economic Data (GMT)

• No data forthcoming

Future Outlook – Economic Events and Other Releases (GMT)

• No upcoming events

Currency summaries

EUR/USD: The euro edged higher against the dollar on Friday as investor sentiment stabilized after a volatile week of trading, helping to lift the euro . Investors are worried about whether US Federal Reserve Chairman Jerome Powell can achieve a “soft landing”, where the Fed raises interest rates just enough to reduce high inflation without causing a contraction in the economy. The single currency has been battered in recent weeks by a combination of fears for the economy suffering from the fallout from the war in Ukraine, and a huge rally in the US dollar fueled by bets that the Federal Reserve will deliver a series of sharp rises in interest rate to control inflation. Immediate resistance can be seen at 1.0451 (38.2% fib), a break up can trigger a rise towards 1.0478 (5DMA). On the downside, immediate support is seen at 1.0345 (23.6% fib), a break below could take the pair towards 1.0325. (lower BB).

GBP/USD The British pound stabilized against the dollar on Friday, although it suffered a fourth consecutive week of losses after a sell-off that pushed the currency to its lowest level in two years. The British pound stabilized against the dollar on Friday, although it was set for a fourth consecutive week of losses after a sell-off that pushed the currency down two years. fell 0.1% in March following a drop in car sales. The pound rose 0.3% to $1.22340 at 1537 GMT, following modest losses earlier in the afternoon when it was down 0.07% against the currency American. Immediate resistance can be seen at 1.2283 (38.2% fib), a break up can trigger a rise towards 1.2370 (50% fib). On the downside, immediate support is seen at 1.2157 (23.6% fib), a break below could take the pair down to 1.2053 (BB lower).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday as oil prices rose and global equity markets recouped some recent losses, but the currency still added to a series of weekly drops. The loonie rose 0.7% to 1.2950 for the greenback, after trading in a range of 1.2915 to 1.3049. The price of oil, one of Canada’s main exports, has soared on fears that supplies will tighten if the European Union bans Russian oil. U.S. crude oil futures settled up 4.1% at $110.49 a barrel. For the week, the loonie fell 0.3%, its seventh consecutive weekly decline. It touched its lowest intraday level in 18 months at 1.3076 on Thursday. Immediate resistance can be seen at 1.2927 (38.2% fib), a break up can trigger a rise towards 1.3044 (23.6% fib). On the downside, immediate support is seen at 1.2827 (50% fib), a break below could take the pair down to 1.2797 (5DMA).

USD/JPY: The dollar strengthened against the yen on Friday as investors remained concerned about slowing global growth and Federal Reserve policy pushing the United States into recession. High inflation and the Fed’s rate hike path fueled fears of a policy mistake that could trigger a recession or stagflation scenario of slowing growth and high prices. The dollar reacted little on Friday to data showing U.S. import prices were unexpectedly flat in April, as lower oil costs offset gains in food and other commodities, a further sign that the inflation has probably peaked. The dollar rose 0.36% to 129.23 yen. A strong resistance can be seen at 129.75 (5DMA), a break up can trigger a rise towards 130.40 (23.6% fib). On the downside, immediate support is seen at 127.64 (38.2% fib), a break below could take the pair towards 126.91 (BB ​​lower).

Summary of actions

European stocks rose on Friday, closing higher for the first time in five weeks as a bargain hunt took over after concerns over aggressive monetary policy tightening and slowing global growth.

Britain’s benchmark FTSE 100 closed up 2.55%, Germany’s Dax ended up 2.10% and France’s CAC ended up 2.52%.

Wall Street surged on Friday to end higher, closing the book on a week of wild market swings as relief at signs of a spike in inflation rivaled fears that a tightening of Federal Reserve policy tip the economy into recession.

The Dow Jones closed up 1.47%, the S&P 500 ended up 2.38%, the Nasdaq ended the day up 3.82%.

Summary of treasury bills

Treasury yields rose on Friday, reversing the week’s rally in bond prices driven by the largest weekly inflows since COVID-19 hit markets in March 2020, as fears of a policy error by the Federal Reserve and runaway inflation have subsided.

The yield on 10-year Treasury bills rose 9.4 basis points to 2.911%, helped by Labor Department data which showed import prices were flat in April. This added evidence of a slight moderation in the rising pace of inflation.

Summary of raw materials

Gold fell more than 1% on Friday and is set for its fourth straight weekly decline as the dollar’s strong run with more aggressive US interest rates on the horizon sapped appetite for bullion.

Spot gold fell 0.7% to $1,808.89 an ounce as of 1:54 p.m. EDT (1754 GMT), after hitting its lowest level since Feb. 4 at $1,798.86. . It’s down almost 4% this week.

Oil prices rose about 4% on Friday as U.S. gasoline prices hit a record high, China appeared poised to ease pandemic restrictions and investors feared supplies would falter. would tighten if the European Union banned Russian oil.

Brent crude futures rose $4.10, or 3.8%, to settle at $111.55 a barrel. U.S. West Texas Intermediate (WTI) crude rose $4.36, or 4.1%, to settle at $110.49.

Garland K. Long