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The markets opened with a risk on sentiment ahead of important US retail sales. Fed members Meister, Bullard, Harker and Fed chair Powell will be speaking on US inflation. Investors’ sentiment was boosted by Chinese headlines about easing lockdown measures and improving demand on supply chains. The early morning rallies may be short-lived as investors brace for an aggressive Fed rate hike.
GBPAUD added +0.22% after Monday`s bearish close. The GBP managed to gain against the AUD despite RBA`s meeting laying expectations to raise the rate by 3 options which are 15bps,25bps and 40bps. UK’s unemployment rate came out 0.1% lesser than expected along with a positive average earnings index + bonus for March and Claimant count change for April. The pair is facing a 1.7757 resistance and a break above that may mean the possibility of retesting the 1.78005level. Traders should focus on BoE MPC member Cunliffe’s speech.
EURJPY extended its gains by +1.00% from the 134.450 support in the European session. The EUR is strengthened by the positive GDP [ YoY] AT 5.1% and GDP QoQ Q1 at 0.3% showing a greener economy for the first quarter. Traders should however pay attention to EBC`S President Lagarde`s speech later in the New York session. A retest of 136.50 support turned resistance in the near term may be seen.
NZDUSD rallied for the third day and has increased by +0.92% early Tuesday. The NZD gained strength against the Dollar following a plunge of the Dollar Index by -0.73% today. The pair faces a near term resistance at 0.6400 ahead of the FOMC`s Powell, Bullard, Meister and Harker speeches later in the day. Investors also put their focus on retail sales data which is forecasted to be positive.
European stocks surged higher during the European session as investors turned risk tolerant. The FTSE gained by +0.91% making a 3-session rise from a 7300 low. A break above the 7550 near-term high may renew bullish interest towards 7600, the May high. CAC40 extended gains by +1.49% breaching the 6400 near-term barrier. If bulls manage to hold above the 6400 may reinforce the bullish outlook towards the 6600 resistance. DAX gapped higher by +1.63% early Tuesday as bulls flirts above the 14000 area. The nearest resistance stands at 14600 and 14800 if the latter is broken.
US equities futures extend corrective move to the upside ahead of US retail sales. The S&P 500 futures added +1.74% early Tuesday as bulls hold above the 4000 support. Traders are currently targeting the 4100 psychological barrier. A failure to break above the 4075 resistance may see the index trimming gains. The Dow Jones Industrial index soared by +1.58% and bulls are capped by a near-term resistance at 32750. The next critical barrier to watch out for is the 33000 big figure. Nasdaq futures rallied by +2.08% although bulls are capped by the 12500.00 resistance.
USWTI surged by +1.00% ahead of the API weekly crude oil inventories due for release in the New York session. Bulls are capped by the $115.5/Barrel a break above that area may open room for further upside. Brent rallied towards the 114.75 resistance as China plans to ease lockdown measures. A break above the barrier may see a 120.00 possible in the near term.
