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Market Comment – Market craves dovish Fedspeak as US stocks reach new highs

US stocks rally after Chairman Powell’s comments Focus on key US data today ahead of Thursday’s bank holiday Dovish ECB commentary to keep euro under pressure Dollar/yen rally continues US stocks rally after Powell’s comments The ECB-dominated forum held in Sintra, Portugal, managed to produce market-moving headlines for the Fed.
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Yen volatility remains high as equities appear calmer – Volatility Watch

Euro/dollar volatility jumps after French elections Volatility in commodities eases, apart from oil Stock indices’ volatility falls ahead of key data releases Euro/dollar volatility has eased over the past week as the market is breathing slightly easier following Sunday’s French elections result. On the flip side, volatility in yen crosses remains extremely high as market participants continue to provoke the BoJ by pushing dollar/yen above the level that led to the end-April
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Market Comment – Euro breathes better but not out of the woods yet

European stock markets higher after French elections result Key euro area data today as the annual ECB forum starts Dollar on the back foot amidst a very busy week Yen remains under pressure Euro gains despite strong result from the National Rally party France’s National Rally party confirmed expectations by winning the highest level of support in the first round of the country’s parliamentary elections, ahead of the left-wing New Popular Front coalition and miles ahead
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Besides commodities, volatility is heightened across the board - Volatility Watch

Yen crosses are very volatile as they approach intervention levels Volatility is extremely low in the commodity sphere US and global equities exhibit volatility jump, Bitcoin follows suit Volatility in yen pairs has been elevated for the past few days as they have been trading within breathing distance from the levels that Japanese authorities were willing to defend in the recent past.
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What’s the outlook for European stocks? – Stock Markets

European stock markets tremble on political turmoil Fears of a potential debt crisis further darken outlook Strong US economy and tech dominance emerge as headwinds   Markets dislike uncertainty European equity markets took a hard beating in the aftermath of the European Parliamentary elections, which showed an overall rise in far-right parties’ popularity.
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Volatility skyrockets in FX and stock markets - Volatility Watch

Euro and pound pairs are very volatile but for different reasons Volatility is extremely low in the commodity sphere US and global equities exhibit volatility jump, Bitcoin seems quiet Volatility in euro crosses has picked up as the region suffers from political instability following the EU elections and fears of a renewed debt crisis.
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Market Comment – Dollar higher, yen under pressure but stocks feel good

Yen suffers from BoJ's inactivity Dollar recovers from Wednesday’s underperformance US stock indices’ euphoria continues BoJ meeting held no surprises The yen is under pressure again today as the Bank of Japan kept its interest rate unchanged and decided to trim its bond buying programme but postponed the announcement of the new size of bond purchases until the July meeting.
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Stock markets and football sometimes mix well

The 2024 European Football Championship starts today History points to strong stock market performance for the host country Major sporting events held in the eurozone could boost growth ECB to monitor consumer sentiment more closely With the market digesting the latest developments, it is time for football on both sides of the Atlantic Ocean.
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Volatility surges across the board – Volatility Watch

Forex pairs are very volatile after strong NFP report Volatility in gold and silver ticks up, oil swims in calm waters US equities exhibit volatility jump amid correction fears Volatility in dollar crosses has picked up as the stronger-than-expected NFP report dialed back rate cut expectations, while investors are bracing for the FOMC meeting and the CPI print later this week. Euro pairs are in a similar position after the EU elections sparked a wave of politically instabili
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Technical Analysis – GER 40 index in positive mood ahead of ECB rate decision

German 40 index strives to exit bearish formation before a widely expected rate cut Short-term risk skewed to the upside, but confirmation signal could come above 18,672   The German 40 index started Thursday’s session on a positive note, aiming to extend its latest upturn above its 20-day simple moving average (SMA) and out of the short-term bearish channel at 18,672. All eyes will be on the ECB policy meeting today and particularly on the central bank’s guidance on future ra
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Volatility ticks up in commodity and stock markets – Volatility Watch

Forex pairs in a quiet mood despite upcoming rate decisions Volatility in oil skyrockets, gold swims in calm waters US equities exhibit volatility jump as they ease from record highs Euro/dollar and euro/pound volatilities have been in the middle of their 30-day range, even though markets are bracing for the first interest rate cut by the ECB since 2016 on its Thursday meeting.
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Euro suffers when ECB announces the first rate cut of the cycle

ECB prepares to cut rates for the first time ahead of the Fed History points to strong possibility of back-to-back rate cuts Both the euro and German DAX tend to underperform on meeting day The ECB is on the brink of announcing its first rate cut since March 2016 as the overall rhetoric from ECB officials leaves little doubt about next week’s rate decision, with even the most hawkish members of the Governing council acknowledging the need for rate cuts.
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Low volatility across the board besides Bitcoin – Volatility Watch

Forex pairs in a relatively quiet mood Volatility in Bitcoin and silver skyrockets US equities enjoy low volatility despite rally to record highs Euro/dollar volatility has dropped aggressively over the past week as markets are bracing for inflation data both from the US and Eurozone this week. Similarly, volatility in yen crosses remains muted even though the Japanese currency is trading near historical lows against its major peers, while the latest downbeat inflation data out
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Commodities' volatility jumps due to geopolitics – Volatility Watch

Euro/dollar volatility eases aggressively Volatility in gold and silver skyrockets US equities enjoy low volatility amidst weekly gains Euro/dollar volatility has dropped aggressively as the market is adjusting to a quieter data calendar that nevertheless includes a plethora of Fed speakers. Similarly, volatility in yen crosses remains moderate as market participants, especially in dollar/yen, appear unwilling to further provoke the BoJ and risk significant losses.
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Equities rally as US data softens – Stock Markets

US stock indices reach new highs as chances of a Fed rate cut jump Extra focus on US retailers’ earnings Utility stocks record the strongest monthly rally since 2022 Could US car manufacturers benefit from the new EV tariffs? Equity markets continue their advance boosted by the softer US data. In particular, Wednesday’s weaker US inflation report is keeping the door firmly open to a Fed rate cut during the summer, supporting the current risk appetite, despite the fact that
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Higher euro/dollar volatility ahead of US CPI report – Volatility Watch

Euro/dollar enjoys strong volatility ahead of key data releases Gold and silver see higher volatility amidst muted price rally Volatility drops in US equities as risk appetite returns Euro/dollar volatility has jumped higher as the market is preparing for some key US data prints. On the flip side, volatility in yen crosses remains moderate after the recent Japanese interventions, with market participants trying to avoid further provoking the BoJ at this stage.
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Besides yen pairs, neutral volatility across the board ahead of Fed and NFP – Volatility Watch

Japan’s intervention spurs volatility in yen pairs, usual action elsewhere in FX market Commodities enjoy lower volatility as geopolitical tensions subside Equities at neutral volatility levels during earnings season, Bitcoin volatility picks up Volatility in yen crosses has exploded on the back of a suspected Japanese intervention. Moreover, apart from dollar/yen, other dollar pairs are trading in the middle of their volatility range ahead of the Fed decision on Wednesday and
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Slightly lower volatility across the board ahead of key US data – Volatility Watch

Lower volatility is on the cards for the FX market Gold to enjoy lower volatility; oil probably too quiet considering geopolitics Equities volatility remains elevated, especially in JP225 index Volatility in EUR/USD has eased up a bit but remains high amidst continued rhetoric for an ECB rate cut in June. Geopolitical events have also played a crucial role in maintaining volatility high in the remaining currencies, including the yen and pound crosses, with the former facin
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Geopolitical developments and stronger US data push volatility to new highs across the board – Volatility Watch

Volatility remains extremely high across the FX spectrum Commodities volatility reaches new highs; Bitcoin poised for smaller moves Equities volatility is off the charts led by the S&P 500 and DAX 40 indices Volatility in EUR/USD remains very high as the pair recorded a decent weekly drop following the stronger US CPI data. Geopolitical events have also played a crucial role in pushing volatility higher in the remaining currencies, including the yen crosses, with the market n
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Technical Analysis – GER 40 index marks highs after highs

German 40 index hits all-time high Uptrend shows ongoing strength, but a pause is likely   The German 40 index has been having an exceptional performance so far in 2024, gaining more than 10% to unlock an all-time high of 18,510 on Wednesday. The ongoing positive trend has yet to show any cracks, but with the price marking its 10th consecutive green week near the upper Bollinger band and the momentum indicators pointing to overbought conditions, the bears could be around the corne
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