Market Updates

Market Wrap – 20th July 2022

MARKET WRAP – 20th July 2022

  • Wall St had its best session in 3 weeks overnight with the NASDAQ closing +3.1%, while the S&P 500 and the Dow Jones finished +2.8%, and +2.4% respectively.  U.S 2 year and 10-year yields ticked higher to 3.01% and 3.23% while crude oil managed gains of 1.5% and closed at $104.10 a barrel. Asian equities were mostly lower on Tuesday, except for the Nikkei which rose 0.65% while the Hang Seng fell 0.9%. The ASX closed 0.6% lower driven by a fall in tech and healthcare stocks.
  • There were headlines out of Europe that ECB policymakers are to discuss a rate hike worth 25 bps or 50 bps at Thursday’s meeting. Additionally, ECB policymakers are closing in on a deal to make new bond purchases conditional on next generation EU targets and fiscal rules. European equities fell on the open, with Euro Stoxx 50 falling 0.6% and CAC -0.5%. US 10-year treasuries were lower at 2.98%. Another headline released that the EU commission doesn’t expect Nord Stream to restart pushed EUR/USD off its highs. Elsewhere and temperatures in the UK reached the highest on record.
  • Into the NY open and US Housing Starts for June declined by 2.0% to 1.559m, weaker than the expectations of a 2.0% increase to 1.580m. Building Permits declined by 0.6% to 1.685m to beat expectations of a 2.7% fall to 1.650m. There was no reaction to the data. Wall St was firmer from the open with early gains of around 1.5% for the Dow and S&P while the Nasdaq was up near 2% over the NY morning but markets were more subdued over the NY afternoon.


  • The AUD firmed after the RBA meeting minutes yesterday revealed little that markets didn’t already know. As a result, markets are still pricing in a 0.50% increase on 2 August.
  • The US dollar was generally softer overnight which saw the EUR/USD trade to a high of 1.0269, the GBP/USD to 1.2044 while the AUD/USD peaked at .69125 before closing at .6900. Into the London lunch and both AUD/USD and NZD/USD traded around their respective session highs of 0.69025 and 0.6237. EUR/USD continued climbing, reaching new highs of 1.0269 while GBP/USD traded sideways at 1.2026, just off its high of 1.20395. USD/CAD continued its steady decline trading down to lows of 1.29305 (Canadian CPI out tonight is expected to post 8.4% vs 7.7% previous) while USD/JPY fell to lows of 137.38.
  • Having drifted off the highs, EUR/USD was up 30 points to trade back above 1.0260 in response to the Nordstream headlines. AUD/USD and NZD/USD made new highs of 0.6909 and 0.6240 ahead of the London rate set while GBP/USD moved up to 1.2044. USD/CAD meanwhile fell to 1.28865 lows in the move. The AUD/USD traded firmly within a .6803/.69125 range overnight.  Demand is expected ahead of .6790 while .6950 should provide the next meaningful level of resistance. At the time of writing the AUD sits at 0.6900.


Currency Pair Low High
AUD/USD 0.6803 0.69125
EUR/USD 1.012 1.0269
GBP/USD 1.1926 1.2044
USD/JPY 137.38 138.39
NZD/USD 0.61415 0.624
USD/CAD 1.2871 1.299
USD/CNH 6.7405 6.7615
AUD/JPY 93.97 95.41
AUD/NZD 1.106 1.1098
DXY 106.404 107.627

Source Bloomberg

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