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Navigate Global Payments – Markets Today 24th June 2022

 

  • MARKET WRAP – 24th June 2022
  • Stocks were firmer Thursday but saw choppy price action as growth woes on poor PMI data were countered with the continued fall in yields and commodity prices.

 

  • Weak growth-related data and concerns of an economic slowdown spurred risk aversion on Thursday. AUD/USD is down for a second consecutive day and approaching the June monthly low at 0.6850

 

  • The bond fade into the afternoon was accentuated by Fed’s Bowman giving some hawkish remark, while Fed Chair Powell’s second and final day in Congress provided little new.

 

  • In FX, the DXY was ultimately flat as initial strength on European PMI weakness pared after the later US figures.

 

  • FED: Chair Powell returned for his second day, in front of the House Finance Committee, and while he largely reiterated his familiar tone the Chair noted as the economy returns to normal, Fed expects profit margins will also normalise.

 

  • Fed Chair Powell said inflation expectations are anchored but added it is not enough as over time they will come under pressure, while Powell said he would be reluctant to cut rates when asked.

 

  • Powell also said the Fed would not raise its inflation target and that the end-point for the balance sheet is roughly USD 2.5tln-3.Otln smaller than it is now.

 

  • Fed’s Bowman (voter) said another 75bps rate hike will be appropriate in July and hikes of at least 50bps at the next few subsequent meetings.

 

  • On inflation, Powell noted inflation expectations are anchored but that’s not enough as over time they will come under pressure. Meanwhile, Bowman (voter) joined the chorus for the July meeting and said another 75bps rate hike will be appropriate, and hikes of at least 50bps at the next few subsequent meetings.

 

  • Bowman added that further rate hikes may be needed depending on how the economy evolves, while she is committed to a policy that will bring the real FFR back into positive territory.

 

 


TODAY’S KEY RISK EVENTS

  • Looking ahead, Bullard (2022 voter) and Daly (2024 voter) are speaking Friday
  • • JP – CPI y/y
  • • JP – CPI ex. Fresh Food, Energy
  • • JP – PPI Services
  • • AU – RBA’s Lowe-Panel Discussion
  • • UK – BOE’s Huw Pill Speaks
  • • UK – BOE’s Haskel Speaks
  • • US – New Home Sales

Source FX Street

  • CURRENCY/INDICIES RANGES
Currency Pair Low High
AUD/USD 0.68695 0.6925
EUR/USD 1.04835 1.05805
GBP/USD 1.2171 1.2294
USD/JPY 134.265 136.2
NZD/USD 0.62485 0.63085
USD/CAD 1.2937 1.3016
USD/CNH 6.6949 6.7194
AUD/JPY 92.61 94.37
AUD/NZD 1.0971 1.103
DXY 104.06 104.769

 

Equity Index Daily % Change Closing Level
ASX 0.3% 6528
SHANGHAI COMP 1.6% 3320
NIKKEI 0.1% 26171
FTSE -1.0% 7020
DAX -1.8% 12913
CAC -0.6% 5883
DOW JONES 0.6% 30677
S&P 500 1.0% 3796
NASDAQ 1.6% 11232
VIX 0.3% 29.05
   
Commodity Daily % Change Closing Level
CRUDE OIL -1.9% 104.1
ICE NAT GAS 1.8% 186.8
GOLD -0.8% 1823.5
SILVER -2.1% 21.0
SGX IRON ORE -0.9% 115.1
CMX COPPER -5.1% 374.9
ICE SUGAR -0.7% 18.4
ICE COTTON -5.6% 186.8
CBT WHEAT -3.8% 950.8
BITCOIN 5.2% 20883.8
     
Rates Markets Yield Daily Change
US 2 YEAR 3.02% -4.2
US 10 YEAR 3.09% -6.7
AUST 2 YEAR 2.89% -11.0
AUST 10 YEAR 3.85% -13.4

Source Bloomberg

   

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Disclaimer: This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711. The material contains general commentary only and does not constitute investment or any other advice. Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors. This information has been prepared without considering your objectives, financial situation or needs. Please seek your own independent legal or financial advice before proceeding with any investment decision. The information is believed to be accurate at the time of compilation and is provided in good faith. Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract. This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change. Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.

 

 

 

 

 

Disclaimer:This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711.  The material contains general commentary only and does not constitute investment or any other advice.  Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors.  This information has been prepared without considering your objectives, financial situation or needs.  Please seek your own independent legal or financial advice before proceeding with any investment decision. The information is believed to be accurate at the time of compilation and is provided in good faith.  Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract.  This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change.  Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.

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