Risk assets ended mostly lower last week, although U.S. stocks pared losses ahead of the weekend after comments from Federal Reserve Governor Jerome Powell spurred some buying. Mr Powell said he was not considering a larger rate hike for now. However, the Fed cannot guarantee a soft landing for the economy.this Dow Jones Industrial Average (DJIA) is down more than 2% this week while high beta NasdaqThe -100 Index (NDX) fell nearly 3%.
this Dollar It was slightly weaker on Friday, but the DXY remained near its highest level since December 2002. With the possibility of a recession increasing, economists will assess the upcoming April retail sales data, which are due on Tuesday. Analysts expect retail sales to fall 0.9% month-on-month, up from 0.5% in March. The higher-than-expected print could help ease concerns about an impending economic slowdown.
Oil Prices rose over the weekend, recouping nearly all of the week’s losses, as strong summer demand fueled concerns about a supply lag. Gasoline prices hit record highs, according to AAA.Although there are built-in crude Inventory in Cushing, Oklahoma. Still, refined oil inventories fell as export demand surged in Europe and Asia. The gap left by Russian oil has fueled massive overseas demand for U.S. refined products. It is also important to consider the continued release of the Strategic Petroleum Reserve, which can skew inventory data. Oil prices are likely to rise heading into the U.S. Memorial Day holiday weekend later this month.
across the Atlantic, GBP It fell compared to most of its peers, extending the previous week’s momentum after the Bank of England cut its economic growth target. The pound’s woes were compounded by weaker-than-expected GDP growth in March. GBP/USD Analysts expect 5,000 jobs to be added in February, according to Bloomberg data, with employment data likely to change this week. UK inflation data could also be of some concern as markets continue to grapple with inflation forecasts.
this Australian dollar Against the dollar, it fell to its lowest level since June 2020. A further drop in iron ore prices weighed on the currency, adding to broader pressures from a risk-off tone in financial markets. China’s ongoing fight against Covid-19 has shut down factories across the economic powerhouse, leading to a drop in consumption of the metal-producing product. AUD/USD If the Australian jobs report impresses, there could be a chance for a recovery this week. Analysts expect Australia to add 25,000 jobs in April, according to a Bloomberg survey. This would be up from 17.9k in March. RBA interest rate Rate hike bets are likely to increase, which could push the Australian dollar higher along with yields.
USD performance vs.currency and gold
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gold It fell last week as traders pulled out of risk assets, pushing the dollar to its highest level since December 2002. Gold faces a tough road if the dollar continues to strengthen.
With stock market sentiment still fragile, the bear squeeze is vulnerable to another setback.
The Australian dollar fell, extending last week’s losses. Will the jobs report revive the AUD/Dollar? Technical and sentiment analysis seem to suggest otherwise.
Oil prices could rise in the short term if China begins to lift its blockade of Shanghai and the European Union strikes a deal among its member states to ban Russian oil imports.
Cryptocurrency remains indecisive after a week of volatility and economic disruption. Bitcoin Support found above $30,000, but will Terra bounce back?
The stock market appears to have bottomed out temporarily and made a strong reversal over the past week, but it is not expected to last long.
rally at USD/CAD It appears to be stalling as the Relative Strength Index (RSI) reverses ahead of overbought territory.
Gold prices tumbled for the fourth straight week and are now trying to break above key technical support. Important levels on the weekly XAU/USD chart.
It’s been another strong week for the dollar, with EUR/USD, GBP/USD and AUD/USD all falling to new lows, posting a sixth straight weekly gain.