Date : 19th May 2021.Market Update – May 19 – USD & Equities weak, BTC Slumps.
Trading Leveraged Products is risky
Market News Today – USD remains weak and cannot catch a bid at the moment. USDIndex down to 89.67. Equities closed down -0.85%, with significant fall in final hour; USA500 4127, despite robust earnings from Walmart & Home Depot. Housing data disappointed. VIX spiked 7.6% to 22.75. Asian markets follow lower. GOLD tested key $1875 level, USOil under $65.00. 10-yr Yields holds at 1.64% despite USD weakness. BTC tumbles under $40,000 on Chinese regulation. Overnight – NZD PPI better than expected, AUD Industrial Production misses. UK CPI – inline at 1.5% (although RPI & PPI stronger).
This week – Economic data slim, FOMC Minutes, Earnings from Walmart (Beat), Vodafone (in-line), Home Depot (beat), still to come today – Target, Lowes and Cisco.
EUR – up and holds over 1.2200 at 3-mth highs 1.2240, JPY struggles and slips under 109.00, Cable rallied to 1.4220 highs yesterday, back under 1.4200 now. AUD back under 0.7800, CAD up from 6-year lows at 1.2012 to 1.2065, and NZD (yesterdays best performer) at 0.7230 from 0.7270)
USOIL edges back to $65.00, Gold – rallied to 3.5 mth high to test key resistance at $1875, trades at $1873. Commodities remain robust. BTC sank under $40,000, (& Ether lost 13% to $2,900) after “China banned its financial institutions from offering cryptocurrency registration, trading, clearing, and settlement in a blow to investors who were betting that digital assets will gain mainstream status.” Reuters. VIX again the largest mover UP 7.60% over 22.60 at 4-day highs.
European Open – The June 10-year Bund future is fractionally lower, while in cash markets the 10-year Treasury yield is currently up 0.3 bp at 1.64%. DAX and FTSE 100 futures are down -0.98% and -0.99% respectively, underperforming versus U.S. futures, which are also in the red, however, after a largely weaker session across Asia overnight. Inflation concerns remain in focus and markets will be watch out for the FOMC minutes today, although the last meeting was conducted ahead of the latest data release.
Today – EZ final CPI, Canadian CPI, FOMC Minutes, ECB’s Panetta, Rehn, Lane, Fed’s Bullard, Bostic. Earnings from Lowe’s, Target, Cisco, L Brands, & Analog Devices.
Biggest Mover @ (07:30 GMT) VIX.F (+7.60%) rallied from under 19.00, yesterday to 22.75 now. Faster MAs remain aligned higher, RSI 67 & moving higher, MACD histogram & signal line aligned higher having broke 0 line into close yesterday. Stochs rising and in OB zone from earlier. H1 ATR 0.57, Daily ATR 2.45.Always trade with strict risk management. Your capital is the single most important aspect of your trading business.Please note that times displayed based on local time zone and are from time of writing this report.
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