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Risk-off ahead of ECB rate decision

Risk-off ahead of ECB rate decision
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.

Stocks rise and the yen slides

Stocks rise and the yen slides
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.

RBA surprises and UK PM holds onto power

RBA surprises and UK PM holds onto power
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.

Stocks rebound and BoC rate decision due

Stocks rebound and BoC rate decision due
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.

Risk falters as Chinese data and EU oil ban

Risk falters as Chinese data and EU oil ban
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.

Risk appetite rises sending stocks higher

Risk appetite rises sending stocks higher
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.

Fed hike fears ease ahead of inflation data

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USD/JPY edged 0.1% lower yesterday after mixed US data prompted markets to rein in expectations of a very aggressive Federal Reserve. US Q1 GDP was downwardly revised, confirming that the US economy contracted in the first three months of the year.

The cautious market mood remains with key US data due

The cautious market mood remains with key US data due
USD/CAD finished flat yesterday as the USD traced treasury yields higher. The pair shrugged off the minutes of the latest Fed meeting, which revealed little that the market didn’t already know. The Fed is expected to raise interest rates by 50 basis points at the June and July meeting.

FOMC minutes awaited after tech selloff

FOMC minutes awaited after tech selloff
The NASDAQ fell 2.3% in the previous session after a profit warning from Snap spooked the markets. Snap warned that the economic outlook had deteriorated faster than expected and raising fears that advertising spending had peaked.

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