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Elon Musk rejigs Twitter offer

“Always think outside the box and embrace opportunities that appear, wherever they might be.” — Lakshmi Mittal 

 

 

HEADLINES

 

  • Dollar steady near one-month low as Fed minutes contain few surprises 
  • Gold prices slip as Fed affirms aggressive policy stance
  • Oil jumps to 2-month high on tight supplies, EU seeks Russian crude ban
  • Wall Street surges on upbeat forecasts from retailers, Fed relief
  • How is Elon Musk funding his $44 bln offer to buy Twitter
  • USD/CAD to slide towards the 1.27 area – Scotiabank
  • AUDUSD Near Term: Upside favored

 

 

FOREX

 

 

Dollar steady near one-month low as Fed minutes contain few surprises 

 

The U.S. dollar was little changed on Thursday, hovering above a one-month low, as minutes from the Federal Reserve’s May meeting contained few surprises, with most participants favoring additional 50 basis point rate hikes at the June and July meetings. 

The dollar index, which measures the currency against six major peers, traded 0.14% lower at 101.92 as the minutes showed the Fed is likely to stay the course for now, but keep its options open for a range of policy choices after the July meeting.

The index has mostly been consolidating around 102 after a short-lived bounce to 102.45 immediately following Wednesday’s release of the minutes.

 

 

COMMODITIES

 

 

Gold prices slip as Fed affirms aggressive policy stance 

 

Gold prices slipped on Thursday as the U.S. Federal Reserve's aggressive monetary policy tightening plan diminished the metal's appeal, with additional pressure from a rebound in equities.

Gold prices are modestly lower, pressured in part by the stabilization of the U.S. stock indexes this week, said Kitco senior analyst Jim Wycoff in a note.

 

Oil jumps to 2-month high on tight supplies, EU seeks Russian crude ban 

 

Oil prices climbed about 3% to a two-month high on Thursday on signs of tight supply ahead of U.S. summer driving season, as the European Union (EU) wrangled with Hungary over plans to ban crude imports from Russia over its invasion of Ukraine. 

Brent was on track for its sixth straight daily gainand highest close since March 25. WTI was headed for its highest close since March 23.

Crude drew support from a big weekly drawdown in U.S. crude inventories, reported on Wednesday.

 

 

STOCKS

 

 

Wall Street surges on upbeat forecasts from retailers, Fed relief 

 

U.S. stock indexes climbed in a broad-based rally on Thursday after upbeat annual forecasts from several retailers, while data confirmed the U.S. economy contracted in the first quarter, easing concerns about aggressive interest rate hikes. 

All of the 11 major S&P sectors advanced, with consumer discretionary up 4.1%, followed by a 1.9% rise in the financial sector (.SPSY).

Meanwhile, the Commerce Department's report showed U.S. GDP fell at a 1.5% annualized rate last quarter amid a record trade deficit and a sequential decline in the pace of inventory accumulation. The economy grew at a robust 6.9% in the fourth quarter.

 

How is Elon Musk funding his $44 bln offer to buy Twitter 

 

Elon Musk has won the backing of some of the world's wealthiest investors for his $44 billion takeover of Twitter Inc. Musk on Wednesday pledged an additional $6.25 billion in equity financing, reducing the billionaire's margin loan against his Tesla Inc (TSLA.O) shares to zero.

Musk increased his financing commitment to $33.5 billion, from $27.25 billion - including the $7.14 billion funding announced earlier in May. The margin loan from Morgan Stanley tied to his Tesla stock, which stood at $6.25 billion, has now been removed from the financing equation.

 

 

ANALYSIS

 

 

USD/CAD to slide towards the 1.27 area – Scotiabank 

 

“We look for the CAD to pick up a little more support in the short run if the data run continues to support the impression that the domestic economy is running ahead of BoC expectations, which will keep policymakers on a relatively aggressive tightening path in the next few months.”

“The underlying momentum signals on the shorter-term studies remain mixed, suggesting more range trading in the short run.”

“We still view broader risks as being tilted to the downside (low 1.27s at least), on the basis of bearish, longer term (weekly) price signals.”

“Intraday weakness below minor trend support at 1.2810 would suggest a run to 1.2765.” 

 

 

CHART

 

 

AUDUSD Near Term: Upside favored

 

Technical View: Long position above 0.6975. Target 0.717. Conversely, break below 0.675, to open 0.691.

Comments: The pair is expected to resume advance after correction.

Source: Trading Central 

 

 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar


SOURCE

https://www.cnbc.com/2022/05/26/forex-markets-dollar-federal-reserve.html
https://www.cnbc.com/2022/05/26/gold-markets-dollar-us-federal-reserve.html
https://www.reuters.com/markets/europe/gold-falls-dollar-inches-higher-fed-minutes-fail-surprise-2022-05-26/
https://www.reuters.com/markets/commodities/oil-firms-tight-supply-though-eu-ban-russian-oil-still-uncertain-2022-05-26/
https://www.reuters.com/markets/europe/sp-dow-futures-edge-higher-ahead-gdp-data-nvidia-slides-2022-05-26/
https://www.reuters.com/business/how-is-elon-musk-funding-his-44-bln-offer-buy-twitter-2022-05-05/
https://www.fxstreet.com/news/usd-cad-to-slide-towards-the-127-area-scotiabank-202205261317