Forex news for NY traders on May 30, 2018
In other markets:
- Spot gold $1301.10
- WTI crude oil $68.25 up 2.28%
- US yields are ending higher: 2 year 2.416%, up 9.6 bps. 10 year 2.857%, up 8 bps 30 year 3.029%, up 6.2 bps
- S&P index up 1.27%
- Nasdaq index up 0.89%
- Dow up 1.26%
The political situation in Italy calmed down - at least for now - and that led to a reversal of fortunes in stocks, bonds and forex. Whether that sticks is still up in the air as the 5-Star and League may look to compromise and remove the more polarizing Paulo Savona as the economic minister. There are still a lot of balls in the air, however.
In the stock market, the major indices in Europe and US rose by decent amounts. In the US, the S&P moved back above its 100 day MA and closed above the MA (at 2710.46). That give the broad index a more bullish bias at the end of the trading day. European stocks also closed with solid gains - retracing some of the large declines from Tuesday.
In the debt markets, yields moved back in line. German, France and UK yields moved higher. The Italian, Spanish and Portuguese yields moved lower. In Italy, the yield fell close to 25 basis points. That was still only about 1/2 of the 48 bp rise on Tuesday though. So the market is a bit cautious.
In the forex market, the NZD and the EUR were the strongest, while the JPY and the USD was the weakest. That too reversed the price action from Tuesday's trading.