English (India)
31
May

European CPI, France and Italy GDP, U.S. House Price Index Data

calendar 31/05/2022 - 05:29 UTC

The dollar overall continued to devaluate against other major currencies on Monday as seen in the performance of the USDX index, while multiple a similar trend could be observed among multiple emerging market currencies with the USD/CNH, USD/MXN and USD/ZAR still moving to the downside. Meanwhile the USD/TRY and USD/INR pairs seemed to have stabilised and are still trading mostly side-ways.

Gold still traded fairly steady despite the movements in the currency markets and rates like the 10-year U.S. T-Note benchmark rate moving higher above 2.8%. Silver prices meanwhile moved lower trading around the same level as ten days ago.

Cryptos remained bullish on Monday with Bitcoin able to trade at times above $32k and Ethereum pushing towards $2k. As Cardano appreciated by 18% on Monday with a further upside seen by Tuesday morning the altcoin managed to move ahead of Ripple in terms of total market cap estimated above $20.5 bn. towards the fourth place among non-stablecoins’ market cap after Binance Coin, Ethereum and Bitcoin.

In the U.S. the FHFA and S&P/Case-Shiller House Price Index data for March will be published. Also on Tuesday the Chicago PMI Business Barometer and the Conference Board Consumer Confidence index will be released. Later in the Asian-Pacific trading session Australian GDP statistics and Chinese PMI numbers can be expected.

EUR/USD

The continued weakness of the dollar allowed the EUR/USD pair to trade at yet another one-month high at its daily peak reaching almost the 1.079 level. While the EUR/JPY rate continued appreciating, the EUR/AUD once again moved to the downside.

While the Italian producer price index (PPI) for April moderately declined on a monthly basis with the annualised inflation amounting to 44.1% (previous month 46.5%), the German consumer price index (CPI) once again confirmed the trend of rising price as the annualised consumer price inflation rose in the preliminary May release to 7.9% (previous 7.4%). A key driver for the price appreciation was once again the energy sector with that part of the basket reaching an annualised inflation rate of 38.3%. Food price inflation also is on the rise as the estimated rate of inflation for May (y/y) reached 11.1% compared to 8.6% in April and 5.3% in February.

On Tuesday CPI data will be released for Italy, France and the eurozone.

EUR/USD

Europe 50

The Europe 50 index closed on Monday for the fourth trading day in a row higher, reaching a new five-weeks high.

A strong performance was seen among stocks in the food delivery sector with Just Eat Takeaway and HelloFresh trading up by more than three per cent, while Delivery Hero ended the day up by more than nine per cent.

For the last day of May a lot of potentially important fundamental data releases are scheduled including GDP statistics from France and Italy as well as the Germany unemployment rate numbers for May.

Europe 50

WTI Oil

Crude oil prices are continuing to move to the upside reaching a new high since early March, when prices peaked at the start of the military confrontation in Ukraine as multiple geopolitical news are seen moving the market. On the demand side, China is seen to gradually lift some of its COVID restrictions, while most EU countries are set to agree to ban the import of crude oil from Russia despite opposition from Hungary.

Meanwhile, according to a Reuters report Saudi Arabia is set to increase oil prices for its Asian customers. Another recent development at the Persian Gulf is the seizure of two Greek tankers by Iran and the threat that it could block more than a dozen other Greek tankers in the Gulf in what is seen as a retaliation against Greece for allowing the U.S. to take Iranian crude oil from tankers close off the coast of Greece.

Due to the Memorial Day Holiday in the U.S. on Monday the schedule for the publication of the weekly crude oil and other energy commodity stockpiles levels moves by one day as the American Petroleum Institute (API) releases its Weekly Statistical Bulletin on Wednesday, while the Energy Information Administration (EIA) publishes its numbers on Thursday.

WTI Oil

US 500

Major stock market indices like the US 500 and US 30 continued moving to the upside at the start of the new week in light trading due to the Memorial Day Holiday as the former reached for the first in more than three weeks a level of 4,200.

Oil companies stocks like Chevron and Exxon traded moderately higher during the Monday session in European OTC markets, while most U.S. exchanges remained closed. Major tech stocks like Microsoft and Apple were also up at that time. Airbnb stocks traded up by almost three per cent, while Zoom Video Communication was seen trading also up by around three per cent on multiple European trading venues.

Compared to the previous week this time rather few company earnings are yet to be released this week. Among these releases will be on Tuesday Salesforce and ChargePoint, followed by GameStop, Pure Storage and Chewy on Wednesday.

US 500

The materials contained on this document should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument, in any manner whatsoever. Any indication of past performance or simulated past performance included in this document is not a reliable indicator of future results. For the full disclaimer click here.