Last session market review
On Thursday, the dollar fell all the way to as low as 98.35, its third straight day of losses. At the same time, the spot gold shock rebound, ending the previous 3 consecutive down trend. Three major U.S. stock indexes rose for the third straight day, with crude oil rising.
On Friday, watch trump’s press conference, Powell’s speech, the U.S. core PCE price index, the university of Michigan’s consumer confidence index, and Canada’s march GDP.
Fx: euro/dollar at 1.1077; Sterling/dollar closed at 1.2320; The Australian dollar closed at 0.6635. The dollar was at 107.65 yen; Us dollar/Canadian dollar at 1.3764; The dollar was at 0.9642 Swiss francs.
Commodities: spot gold closed at $1,718.00 an ounce; Comex gold ended at $1,728.30 an ounce; Spot silver settled at $17.36 an ounce; Comex silver futures closed at $17.963 an ounce; Brent crude closed at $35.29 a barrel; NYMEX crude settled at $33.71 a barrel.
In the currency market
Euro: euro/dollar rose for the third straight day, up 0.63% to 1.1077. On the technical level, the pivot point of the currency pair is 1.1054, the initial resistance to the upward movement of the exchange rate is 1.1116, the further resistance is 1.1155, and the key resistance is 1.1218. The initial support for the fall in the exchange rate is at 1.1014, further support at 1.0952, more critical support at 1.0912.
Sterling: the pound turned higher against the dollar, up 0.51% at 1.2320. On the technical side, the pivot point of the currency pair is 1.2299, the initial resistance to the upward movement of the exchange rate is 1.2366, the further resistance is 1.2410, and the key resistance is 1.2477. The initial support for the fall in the exchange rate is at 1.2255, further support at 1.2188, more critical support at 1.2144.
Yen: dollar/yen reversed course to close at 107.65, down 0.06%. On the technical level, the pivot point of the currency pair is at 107.70, the initial resistance to the upward movement of the exchange rate is at 107.83, the further resistance is at 108.03, and the key resistance is at 108.17. The initial support for the fall in the exchange rate is at 107.49, further support at 107.36, more critical support at 107.16.
The stock market
U.S. and European stocks: U.S. stocks ended lower Thursday, erasing strong gains made earlier in the day. The dow Jones industrial average closed down 147.63 points, or 0.6%, at 25,400.64, its first decline in three days after rising as many as 210 points. The s&p 500 fell 0.2% to 3,029.73, giving up a 1.1% gain. The nasdaq composite index fell 0.5% to 9368.99. Despite Thursday’s losses, major indexes rose this week. The s&p 500 is up 2.5% and the dow is up 3.8% so far this week, while the nasdaq is up 0.5%.
European stocks closed higher on Thursday (May 28) as the European Union’s massive economic stimulus package and the latest us unemployment figures offset geopolitical tensions between China and the us. The pan-European Stoxx 600 index closed up 5.72 points, or 1.64 percent, at 355.47. Germany’s DAX index closed up 121.31 points, or 1.04 percent, at 11,779.00. Britain’s FTSE 100 indexes closed up 76.30 points, or 1.24 percent, at 6220.55. France’s cac-40 index closed up 82.65 points, or 1.76 percent, at 4771.39. Spain’s IBEX35 index closed up 48.50 points, or 0.68%, at 7,223.00. Italy’s FTSE closed up 426.25 points, or 2.38 percent, at 18,336.50. The Stoxx Europe 50 index closed up 44.07 points, or 1.44 percent, at 3095.15.
The bond market
On Thursday, Treasury yields edged higher: the yield on the benchmark 10-year note edged up 2 basis points to 0.689 per cent, while the 30-year yield rose 3 basis points to 1.45 per cent.
The international spot gold market opened at $1708.88 an ounce in early trading on Thursday, rising as high as $1727.10 an ounce and dipping as low as $1706.59 to close at $1718.00 an ounce, up $9.12, or 0.53%.
COMEX gold for August delivery ended 0.1 percent higher at $1,728.30 an ounce.
On Thursday (May 28), Saudi Arabia’s crown prince spoke with Russia, who indicated a willingness to extend production cuts, pushing oil prices higher: U.S. WTI crude for July delivery closed up 90 cents, or 2.74 percent, at $33.71 a barrel. Brent crude for July delivery rose 55 cents, or 1.58 percent, to $35.29 a barrel. WTI is up 240% from its April 28 low of $10.07 a barrel, while the price of brent has doubled over the same period.