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Home CommoditiesForex Daily Broad Market Recap – May 27, 2024

Daily Broad Market Recap – May 27, 2024

by xyonent
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Don’t have a large data point? No problem!

Despite traders in the UK and US being on holiday, the major forex pairs and asset classes still recorded fairly good performances.

Read on to find out how the market performed.

Headline:

  • Bank of Japan Governor Ueda: As Japan is “making progress in moving away from zero and raising inflation expectations,” the central bank will proceed cautiously with its inflation targeting framework.
  • German Ifo business climate index for May: 89.3 (expected 90.4, previous 89.3)
  • Belgium NBB May economic sentiment index: -11.0 (expected -10.8, previous -11.9)
  • ECB Commissioner Oli Rehn: “[T]Time ripe for rate cut in June as inflation falls ‘sustainably’ to 2% target
  • ECB Commissioner Philip Lane: ‘Pace of further rate cuts’ depends on strength of underlying inflation
  • UK banks closed to celebrate Chinese New Year
  • US markets closed for Memorial Day holiday

Broader market price trends:

Dollar Index, Gold, S&P 500, Oil, US 10-Year Treasury Yield, Bitcoin Overlay Chart by TradingView

Commodities got off to a strong start as gold and crude oil kicked off the week on a strong note, continuing to rise throughout the day.

WTI crude rose more than 1% on Monday on geopolitical uncertainty following news that an Egyptian soldier was killed in a gunfight with Israeli forces in Rafah.

Bitcoin fluctuated wildly early in the day, but rising risk in the late hours helped the S&P 500 Index rise, while the safe-haven dollar fell.

FX Market Trends: US Dollar vs. Major Currencies

USD vs Major Currency Chart Overlay by TradingView

USD and major currencies overlay Chart by TradingView

Foreign exchange markets were less liquid than usual due to public holiday closures in both the UK and US markets. There was not much of note on the economic calendar apart from a speech by Bank of Japan Governor Ueda and a couple of eurozone economic surveys.

The dollar was trading flat against other currencies before slipping back, continuing last Friday’s selling pressure and posting its biggest ever drop against commodity currencies but performing well against fellow low-yielding yen and franc.

The ECB’s Mr. Lane and Mr. Lane also made dovish comments in their testimony, which led to some selling of the euro, but the euro subsequently rose against the US dollar along with other forex currencies.

Potential catalysts on the upcoming economic calendar:

  • Australian retail sales, 1:30am GMT
  • SNB Governor Jordan will speak at 4:55am GMT
  • Bank of Japan Core CPI 5AM (GMT)
  • US S&P/CS Composite 20 Index (1pm GMT)
  • US Central Bank Consumer Sentiment Index (2pm GMT)

Today’s schedule includes several events starting with the Australian retail sales release and the Bank of Japan core CPI.

However, the bigger market moves may come much later, when the U.S. economy releases its May CB Consumer Sentiment Index, which may provide some clues about future spending activity.

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