English (India)
17
May

EU GDP, Italian CPI, U.S. Retail Sales, Industrial Production

calendar 17/05/2022 - 07:20 UTC

While the U.S. dollar traded noticeably lighter against other major currencies with the USDX now well below its recent high around the 105-mark there were some developments among emerging market currencies. Pairs like the USD/ZAR and USD/CNH continued coming down from their recent high, while despite the dollar-weakness the USD/INR pair was still close to its all-time high with other INR pairs like the EUR/INR trading once again higher by Tuesday morning. The USD/TRY pair meanwhile continued to push higher trading by Tuesday morning as high as 15.75, which is yet another year-to-date high for the pair.

Major cryptos like Bitcoin and Ethereum started to recover in the evening hours on Monday with Bitcoin trading by Tuesday morning above $30k, while Ethereum was closer towards the $2.1k mark. On a rolling seven days basis some major cryptos by now are actually trading even moderately in the green as is the case for Bitcoin, Binance Coin and few others. On the other hand there are also altcoins like Ripple and Avalanche which are still down by a double-digit percentage over the same timeframe.

On Tuesday U.S. retail sales, capacity utilisation and industrial production data will be published. Later in the Asian-Pacific trading session Japanese GDP numbers, Australian wage price data and Chinese house price index statics can be expected.

EUR/USD

The EUR/USD pair managed to recover some lost ground over the weakness of the dollar. Though the euro itself was not performing too firm compared to multiple other major currencies with the pair still remaining well below the 1.05-rate. By Tuesday morning the euro was trading only stronger against the Swiss franc (CHF) compared to the closing level of last week and even the EUR/GBP pair continued declining despite concerns over the leadership of the UK looking to unilaterally change the agreement relating to the EU-Brexit treaties on Northern Ireland.

European trade balance data released on Monday morning showed that the trade balance deficit increased significantly as it amounted to €17.6 bn. in March. The French unemployment rate statistics for the first quarter meanwhile were better than anticipated as it declined from 7.2% to 7.1%.

On Wednesday Italian trade balance and consumer price index (CPI) data will be released. Also on Tuesday, eurozone GDP statistics for the first quarter can be expected.

EUR/USD

Gold

After gold prices dipped to a new low since January during the morning hours on Monday, a recovery set in with the price level stabilising well above the $1,800 mark. Silver meanwhile continued to move higher after already closing higher on Monday with the price up by more than 3.7% since Friday. Mixed results were seen among other precious metals with platinum ending the day almost unchanged after some intraday volatility, while palladium recovered above the $2,000 mark.

Gold

WTI Oil

Oil prices continued moving higher, reaching on Tuesday a new high since March with a barrel of WTI crude oil traded at times almost at $115. While the European Union is still discussing a ban on Russian oil, the announcement of the end of the lockdown in Shanghai after this key economic hub has been facing severe restrictions for more than a month was said to have also contributed to the rise in oil prices.

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

WTI Oil

US 500

While stock market indices like the US 500 and the US Tech 100 opened higher after the weekend break, by the end of the day on Monday they still had to show a red candlestick. Within this mixed market sentiment especially energy sector stocks (US Energy ETF +2.56%) performed quite well, while chip sector stocks (US Semiconductors ETF -1.53%) closed overall lower after the strong performance on Friday.

Twitter (-8.24%) was by far the worst-performing component of the S&P 500 index after Elon Musk, who last month announced a bid to take over the company indicated that he might want to renegotiate the price to be paid to seal the deal after making accusations over fake accounts and bots on the social media platform.

Take-Two Interactive was trading higher in the extended session after results for the fiscal fourth quarter with earnings per share (EPS) amounting to $1.16 exceeded analysts’ expectations though these results are still worse in terms of EPS compared to the past quarter and the same quarter a year ago.

On Tuesday Home Depot, Sea Ltd, JD.com and HUYA are releasing their respective quarterly results followed by Target, Cisco Systems and TJX on Wednesday.

US 500

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