Category Market Updates

The FTSE fell 2.8% across the previous week as stagflation fears sank the market. The OECD warned that the UK would see the weakest economic growth of the G7 major economies.

Gold inched lower in the previous session ad is falling further today, pulled lower by rising treasury yields as the market looks toward US inflation data. US CPI inflation could provide the market with further clues as to how aggressively the Federal Reserve is likely to tighten monetary policy.

EUR/GBP rose yesterday, snapping a two-day losing run. The euro was boosted by stronger than expected economic growth in the first three months of the year. Meanwhile, the pound came under pressure after the OECD reported that the UK would see the slowest growth of developed countries, with growth then stalling next year.

USD/JPY trades at a 20-year high of over 133.00, boosted by central bank divergence. The RBA hiking rates by a larger than expected 50 basis points highlighted how dovish the BoJ is compared to most other major central banks, pulling the yen lower.

The FTSE closed over 1% higher in the previous session as investors shrugged off news that Prime Minister Boris Johnson would face a vote no confidence and instead pushed stocks higher amid an upbeat market mood.

AUDUSD rallied 0.6% last week marking a third consecutive week of gains, taking the price to a six-week high.

USDJPY rose 1.1% in the previous session, marking the third straight day of gains. The USD rose on hawkish Fed bets after US ISM manufacturing PMI unexpectedly rose to 56.1 in May, upwardly revised from 54.5.

Oil prices have been on a rollercoaster ride over the past 36 hours. Oil prices jumped to a two-month high after EU leaders approved the banning of around 90% of Russian oil imports. The deal was watered down from the original proposal in order for Hungary to get onboard but is still expected to have an impact.

AUDUSD was the top-performing currency major in the previous session as the Aussie found support from the risk-on market mood and the easing of COVID mobility restrictions in China. Shanghai is expected to open tomorrow fully.

The DAX rallied 3.4% across last week, boosted by rising risk appetite as bets of a more aggressive Federal Reserve cooled, although inflation and recession risks remain. Today the index is heading higher as the new week kicks off, helped by a strong close on Wall Street on Friday after the Fed’s preferred gauge for inflation showed that prices cooled and after strength in the Asian session, where stocks hit a three-week high.