- The US dollar advances for the fifth consecutive day as US yields edge higher on hawkish comments by Fed’s President Neel Kashari, where he stated that the Federal Reserve needs to raise interest rates again this year and keep the economy in a tight policy regime for longer.
- USD/JPY trades over 149, with the Yen weakening past this level for the first time since November.
- EUR/USD continues to drift lower, holding below 1.06. Next key support seen at 1.05.
- GBP/USD is 0.30% lower, after breaking some support at 1.22, currently sits around 1.217. Next big support seen at 1.18.
- EUR/GBP made its way to key resistance of 0.87, but it has failed to break this level multiple times.
- WTI Crude is down 0.2% to trade around $89.52/bbl.
- US Treasuries continue to decline, leading 10-year and 30-year yields to new multiyear highs, as expectation that the Federal Reserve will maintain a higher for longer interest rate policy and the issuance of new bonds will keep increasing as the US government struggles with mounting deficits.
- Soaring demand for Gold in China is the ultimate sign of “economic anxiety”. Combining a weak yuan, a crashing housing market and capital controls not allowing money to leave the country, investors have turned to gold.