- European indices finished today's session mostly lower, with the DAX falling 0.42% as traders continued to digest hawkish messages from major central banks.
- The Bank of Japan unexpectedly joined hawks and raised the upper limit of its tolerance band on 10-year government bonds to 0.5% from 0.25%, which is seen by market participants as the first sign that massive stimulus could be withdrawn.
- US indices swing between gain and losses on Tuesday, with a rally in the energy sector offsetting losses in consumer discretionary, as traders took advantage of yesterday's sell-off to open new positions. S&P 500 and Nasdaq are trading 0.40% and 0.30% higher as rising Treasury yields limit demand for tech and other high-growth stocks, while Dow Jones rose 0.60%.
- US building permits fell 11.2% mom last month, the most significant monthly drop since the beginning of the pandemic.
- Precious metals rose sharply amid a weaker dollar. Gold is retesting recent highs around $1820 per ounce, while silver jumped over 5.0% to key resistance around $24.00 per ounce amid supply concerns.
- Oil prices erased early losses and are trading 0.70% higher as uncertainty over China’s COVID outbreak has been overshadowed by weaker dollar and plans of the US government to refill its petroleum reserve.
- NATGAS fell 9.0% amid warmer weather forecasts despite signs that Freeport will soon resume work.
- A gas pipeline in central Russia that brings gas from Russia's Arctic through Ukraine to Europe has been shut following a huge explosion that killed three people, according to Reuters
- The dollar index dropped below the 104 mark amid uncertainty about the path for interest rates and mounting fears about a recession. Sectors most sensitive to fluctuations in interest rates, like real estate and consumer discretionary, have been flashing recessionary signs amid tighter financial conditions.
- JPY appreciated more than 4% against the greenback after the BoJ recent move. Currently JPY and CHF are the best performing currencies while AUD and NZD lag the most.
- Mixed moods prevail on the cryptocurrency market. Bitcoin pulled back sharply after an unsuccessful attempt to break above resistance at $17000, while Ethereum managed to jump above the $1200 mark.
GBPUSD pair continues to hoover around major support at 1.2150, which is marked with previous price reactions and lower limit of the ascending channel. Should break lower occur, downward move may accelerate towards psychological support at 1.2000. On the other hand, if buyers manage to take control, then another upward impulse towards local resistance at 1.2355 may be launched. Source: xStation5
