Eurozone Trade Balance, US Trade Conditions, Take-Two Earnings

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While the dollar traded at the start of the week in a relatively stable fashion against other major currencies, as shown by the performance of the USDX index, potentially significant moves could be seen among emerging market currencies. USD/CNH continued higher after a brief retracement at the end of last week, while USD/ZAR hit a new high since November last year. USD/TRY meanwhile continues to test a new high since the tumultuous days at the end of last year. Another notable event was the USD/INR rate hitting a new all-time high.

Crypto markets rallied over the weekend with Bitcoin trading at times above $31,000, while Ethereum easily broke above the 2.1,000 mark. evening pushed those crypto valuations down again. While virtually all major cryptos have lost double-digit percentages over the past week, some altcoins have been hit harder than others with Shiba Inu down almost 30% over the week, while Avalanche fell more than 38%.

On Monday, Eurozone trade balance data will be released. Later in the U.S. trading session, Canadian data on housing starts and manufacturing sales will arrive, along with U.S. statistics on foreign demand for long-term U.S. securities and the general survey of trading conditions for the Empire State.

EUR/USD

The EUR/USD pair traded briefly at a new low since January 2017 on Friday around the same time the US stock market reopened. Later, however, as the greenback weakened a bit again, the pair managed to end the day moderately higher, although it remained the sixth week in a row that the exchange rate declined.

Some trends in the currency markets reversed on Friday, with the euro also managing to rally against the Japanese yen (JPY), while other pairs like EUR/AUD, EUR/CAD and EUR /GBP closed lower.

The fundamentals coming from the Eurozone were not as bad as some had anticipated, with Eurozone industrial production shrinking by 1.8% (m/m) in March, while the inflation rate of the consumer price index (CPI) in France was confirmed for April at 4.8% (y/y).

Gold

Gold prices remained under pressure after briefly trading below $1,800 on Friday for the first time since early February. While platinum also closed lower on Friday, silver prices ended the trading day in the green.

Commitment of Traders (COT) statistics released as usual on Friday by the US CFTC showed that net speculative net positions continued to decline in futures markets in underlyings like silver and gold. gold, the positions decreasing by 9 thousand and 5.9 thousand respectively.

Gold

WTI oil

As oil prices rose again on Friday, WTI Crude Oil ended the week almost unchanged despite a significant drop in prices earlier in the week. Despite reports from OPEC and IEA over the past week and the obvious demand implications of China’s COVID lockdowns, prices have remained bullish, likely at least to some degree due to the impact likely EU sanctions against Russian oil exports, which have the potential to disrupt global oil markets and reduce total supplies available in some regions.

The U.S. Baker Hughes Oil Rig Count, which measures the number of oil rigs in operation, continued to rise for the tenth consecutive week and, with 563 oil rigs reported in operation, hit a new high in 25 months.

As usual, weekly data from the American Petroleum Institute (API) on the evolution of crude oil, gasoline and distillate inventories will be published in the weekly statistical bulletin on Tuesday evening, followed by statistics from Energy Information Administration (EIA) Wednesday.

WTI oil

500 United States

Despite the rally in equity indices like the US 500 on Friday, with the index closing above 4,000 given the strong performance during the trading session closing down almost 2%, on a weekly basis, the market remained deep in the red, closing lower for the sixth straight week.

Some of the best performing stocks in the market on Friday were in the leisure and travel sector, with Las Vegas Sands (+15.12%) and Wynn Resorts (+13.33%) being the two best performers during the trading session. stock Exchange. Airline stocks (Airline Industry ETF +4.14%) also closed strong despite the continued rise in oil prices. Strong performance could also be seen among chip stocks (US Semiconductors ETF +5.24%), with the upward push recouping nearly all of the week’s previous losses.

On Monday, quarterly results from Wiz.com, Tencent Music and Take-Two Interactive are due, followed by Home Depot, Sea Ltd, JD.com and HUYA on Tuesday.

500 United States


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