Commodity markets plunged as Saudi Arabia prepares to boost oil production. The investors continue to digest the OPEC+ outlook in the near term as central bankers continue to fight inflation. Energy and food prices remain the major contributors to inflation globally. German Buba Vice President Buch, FOMC member Mester and BoC Deputy governor Beaudry will be speaking during the New York session.
USDCHF tanked by -0.27% trimming its 3-day rally as positive Switzerland inflation data boosts the CHF. The CPI YoY data beat expectations coming at 2.9% against the survey at 2.6% while MoM data rose to 0.7% from 0.3%. The bulls lost steam at 0.9660 and can trade lower towards the 0.9540 level. A break above the 0.9660 may renew bullish momentum toward the 0.9770 level. Traders should watch out for the US labour participation data later in the day.
EURNZD dropped by -0.10% after Eurozone’s negative PPI data for April. The PPI YoY figure dropped from 38.5% expected to 37.2%, while the PPI MoM figure was 1.2% from the 2.3% surveyed. The pair is currently sitting above a 3-week low and a break below the 1.6370 area may see bears targeting the 1.6200 psychological level. Bulls are capped by the 1.6450 near term barrier. Euro’s Retail sales are due for release early Friday morning.
CADJPY shaded off Wednesday gains by -0.27% as the hawkish BoC outlook fades. The BoC hiked rates by 50bps to 1.50% although the plunging oil prices underpinned the Canadian dollar’s strength. The pair retreated from a 7-year high after making a fresh high at 103.00. The pair has near term support at 102.00 and a failure to hold above that area, bears may target the 101.00 psychological level.
European stocks recovered Wednesday’s losses as the dollar receded. FTSE climbed +0.42% as bulls defended the 7520 support, a 6-day low. Upside gains are capped by the 7650.00, a 2-months high. Dax rallied by +0.82% and critical areas to watch out for are the 14600 resistance and 14300 support. CAC40 soared by +0.82% as the index find near term support at 6400 and a defence of that level may reinforce the bullish outlook towards the 6600, one month
US stock equities recovered as oil declined. The S&P 500 futures edged up by +0.53% as bulls managed to defend the 4090.00 support. Upside gains are capped by the 4200 resistance and a break above that area may see extended targets towards the 4300 level. Nasdaq futures rose by +0.62% although bulls are capped by the 12800 barrier. A bullish break may reinforce bullish momentum towards the 13500.00. However, downside pressure may renew if the 12500 level fails to hold. Critical support to watch out for is 12200 and 11700 levels.
Dow Jones Industrial index gained by +0.50% as the 32700.00 level holds. A break above the immediate resistance at 33270 may renew bullish interests toward the 34000 level.
Brent plunged by -2.19% as bear traders reclaim 113.00, a 7-day low. A break below the 112.50 may renew selling pressure toward the 104.00 level. US WTI futures tanked -by 2.41% towards near term support at 110.00. A failure to hold the near-term support may see bears aiming for the 100.00 level.