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While the dollar traded at the start of the week fairly stable against other major currencies as seen in the performance of the USDX index, some possibly significant movements could be observed among emerging market currencies. The USD/CNH pair continued to move higher after a brief retracement at the end of last week, while the USD/ZAR pair hit a new high since November last year. The USD/TRY pair 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 reaching a new all-time high.
Cryptos markets were recovering over the course of the weekend with Bitcoin trading at times above $31k, while Ethereum surpassed the 2.1k mark with ease. A retracement that started to affect the markets on Monday night pushed these crypto valuations again lower. While practically all major cryptos have lost a double digit percentage over the past week, some altcoins were impacted stronger than others with Shiba Inu declining by close to 30% over the course of the week, while Avalanche dropped by more 38%.
On Monday eurozone trade balance data will be published. Later on during the American trading session from Canada data on housing starts and manufacturing sales will come in as well as U.S. statistics on foreign demand for long-term U.S. securities and the Empire State general Business Conditions survey.
The EUR/USD pair traded briefly at a new low since January 2017 on Friday around the same time the U.S. stock market reopened. Later however as the greenback weakened again a bit, the pair managed to end the day moderately higher though it remains the sixth week in a row where the exchange rate declined.
Some trends in the FX markets reversed on Friday with the euro also managing to recover against the Japanese yen (JPY), while other pairs like the EUR/AUD, EUR/CAD and EUR/GBP closed lower.
Fundamentals coming from the eurozone were not as bad as some have anticipated with the eurozone industrial production declining by 1.8% (m/m) in March while the rate of consumer price index (CPI) inflation in France was confirmed for April at 4.8% (y/y).
Gold prices remained under pressure after briefly trading below the $1,800 mark 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 U.S. CFTC showed that the net speculative net positions continued to decline in futures markets on underlying like silver and gold with the positions declining by 9 thousand and 5.9 thousand respectively.
With the oil prices once again moving higher on Friday, WTI crude oil ended the week almost unchanged despite a significant drop in prices at the beginning of the week. Despite reports published by both OPEC and IEA over the past week and the obvious implications on demand by the Chinese COVID-lockdowns prices remained bullish, probably at least to some extent due to the likely impact of EU sanctions against Russian oil exports, which have the potential to disrupt the global oil markets and diminish total available supplies in some regions.
The U.S. Baker Hughes Oil Rig Count, which measures the number of operating oil rigs continued to rise for the tenth week in a row and at 563 oil rigs reported in operating reached a new 25-months high.
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.
Despite stock market indices like the US 500 recovering on Friday with the index closing above 4,000 given the strong performance over the course of the trading session closing up by almost two per cent, on a weekly basis the market remained deep in the red, closing lower for the sixth week in a row.
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. Airline stocks (Airline Industry ETF +4.14%) also closed with a strong upside despite still rising oil prices. A strong performance could be also observed among chip stocks (US Semiconductors ETF +5.24%) with the push higher recovering almost all the previous losses of the week.
On Monday quarterly results from Wiz.com, Tencent Music and Take-Two Interactive can be expected, followed by Home Depot, Sea Ltd, JD.com and HUYA on Tuesday.
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