Last session market review
The dollar was volatile on Wednesday, reversing a strong rally after plunging to a low of 98.72, before falling again and closing close to a cross. At the same time, spot gold fell to a low of $1,693.66 before bouncing back and ending down for the third day in a row.
The rest of the session will focus on heavy data such as U.S. real GDP for the first quarter, last week’s seasonally adjusted initial jobless claims and April’s preliminary reading of durable goods orders.
Fx: euro/usd 1.1008; Sterling/dollar closed at 1.2258; The Australian dollar closed at 0.6619 against the U.S. dollar. The dollar was at 107.72 yen; Us $1.3750; The dollar was at 0.9682 Swiss francs.
Commodities: spot gold closed at $1708.88 an ounce; Comex gold ended at $1,726.80 an ounce. Spot silver settled at $17.24 an ounce; Comex silver futures closed at $17.757 an ounce; Brent crude closed at $34.74 a barrel; NYMEX crude closed at $32.81 a barrel.
In the currency market
Euro: euro/dollar rose for a second day, or 0.24%, to 1.1008. On the technical level, the pivot point of the currency pair is at 1.0990, the initial resistance to the upward movement of the exchange rate is at 1.1046, the further resistance is at 1.1087, and the key resistance is at 1.1143. The initial support for the fall of the exchange rate is at 1.0949, further support at 1.0893, more critical support at 1.0852.
Sterling: the pound fell for the first time in three days to close at $1.2258, down 0.59%. On the technical level, the pivot point of the currency pair is at 1.2272, the initial resistance to the upward movement of the exchange rate is at 1.2342, the further resistance is at 1.2422, and the key resistance is at 1.2491. The initial support for the decline of the exchange rate is at 1.2192, further support is at 1.2123, more critical support is at 1.2042.
Yen: dollar/yen turned higher to close at 107.72, up 0.20%. Technically, the pivot point of the currency pair is at 107.67. The initial resistance to the upward movement of the exchange rate is at 107.98, the further resistance is at 108.25, and the key resistance is at 108.56. The initial support for the decline of the exchange rate is at 107.40, further support is at 107.09, more critical support is at 106.82.
The stock market
U.S. and European stocks rose for a second straight day on Wednesday as optimism grew that the U.S. economy was restarting. The dow Jones industrial average rose 553.16 points, or 2.2%, to 25,548.27, its first close above 25,000 since march. While the dow is still down more than 10% this year, it had its best week since early April. The s&p 500 closed up 1.5 percent at 3,036.13 after a brief intraday decline. Wednesday’s rally pushed the s&p 500 back above its 200-day moving average for the first time since march, closing above 3,000 and up more than 38 percent from its intraday low hit on March 23. The s&p 500 is down 6% so far this year; The nasdaq composite index rose 0.8% to 9,412.36.
The pan-european stoxx 600 index closed 0.2 percent higher, with major exchanges in Germany, France and Britain Posting strong gains on Wednesday. Banks led the way, up nearly 4 percent, while health care led the way, down 2.5 percent. Germany’s DAX closed up 147.75 points, or 1.28%, at 11652.40. Britain’s ftse 100 index closed up 78.42 points, or 1.29 per cent, at 6,146.18. France’s cac-40 index closed up 82.50 points, or 1.79%, at 4688.74. Spain’s IBEX35 index closed up 163.10 points, or 2.33 percent, at 7,167.00. Italy’s ftse closed up 35.04 points, or 0.20%, at 17895.50. The stoxx Europe 50 index closed up 50.13 points, or 1.67 percent, at 3049.35.
The bond market
On the U.S. side, the benchmark 10-year Treasury yield fell to 0.6900 percent and the 30-year yield fell slightly to 1.4327 percent as rising geopolitical tensions between China and the United States dented investor confidence in the reopening of the economy and the imminent availability of a potential covid-19 vaccine.
International spot gold rose as high as $1715.39 an ounce at $1710.45 in early trading on Wednesday, and fell as low as $1693.22, down $1.48, or 0.09 percent, to $1708.88.
COMEX gold for August delivery ended down 0.08 percent at $1,726.80 an ounce.
On Wednesday (May 27), British Columbia, Canada, BC) (hereinafter referred to as the Supreme Court announced meng wanzhou accord with standard of “double crime” extradition, the geopolitical tensions escalated, plunge the investor confidence in the economy to restart, combined with the market is expected to reduce U.S. oil demand, oil prices closed down: July U.S. WTI crude futures fell $1.54, or 4.4%, to $32.81 a barrel, once hit an intraday high of $34.80 a barrel; Brent crude for July delivery fell $1.43, or 4 percent, to $34.74 a barrel. WTI crude and brent rose 13 per cent and 8 per cent, respectively, last week.