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The Turkish lira (TRY) stabilised on Friday, remaining consistently below the 16.5-mark in the USD/TRY pair. Despite the relative weakness of the dollar the lira was significantly underperforming this month as the currency pair is so far up by more than ten per cent in May.
After crypto markets started already recovering on Saturday and Sunday, multiple major cryptos including Bitcoin and Ethereum continued pushing higher by Monday night with Bitcoin trading above $30k, while Ethereum traded close to the $1,900-level. A particularly strong performance was seen over the past 24 hours in the altcoins Cardano and Polkadot with the latter trading even higher on a rolling seven day basis despite the losses during the course of the past week.
Markets were on the move on Friday especially around the time major fundamental statistics in the U.S. were releases like the core PCE price index which fell as anticipated from 5.2% y/y inflation to 4.9%, while consumer spending increased in April more than anticipated by 0.9% m/m. In the following hours major stock market indices like the US 30 and the US Tech 100 traded higher with the US 30 index now clearly trading higher for this month while the US Tech 100 managed to recover all its monthly losses. While the US 500 index is by now trading just a bit more than one per cent higher than a month ago, the Volatility Index VIX in the continuously rolled over futures CFD contract is down by more than 15% over the same timeframe.
On Monday no significant fundamental data releases are scheduled in the U.S. due to the Memorial Day Holiday, while from Italy PPI numbers and German CPI statistics can be expected. Later during the Asian-Pacific trading session Japanese unemployment rate and industrial production data will be published.
With the dollar continuing to weaken, the EUR/USD pair climbed towards a new one month high, trading mostly above the 1.07 threshold. The euro itself was trading fairly stable against other major currencies in line with general market trends as it also appreciated against the Japanese yen (JPY), while the EUR/NZD and EUR/AUD pairs were trading clearly lower on Friday.
By Monday morning the Italian producer price index (PPI) will be published in Italy followed by the European Commission’s consumer and industrial confidence indicators and economic sentiment metrics. Then by mid-day (GMT) the preliminary German consumer price index (CPI) statistic for May will be released.
While gold prices closed for the second day in a row almost unchanged, this was still enough for gold to trade higher for the second week in a row. While against the U.S. dollar, which was devaluating against other major currencies last week, the performance of gold was almost flat, against the euro gold prices noticeably declined with the Gold (EUR) CFD ending the week 1.1% lower.
Palladium prices meanwhile continued moving higher after remaining on Friday for the first time in more than two weeks firmly above the $2,000-mark. Given the decline in market rates at the beginning of the month though, palladium is still trading almost ten per cent lower since the end of April.
The weekly Commitment of Traders (COT) data release by the U.S. CFTC on Friday indicated another week of declining net speculative positions in silver futures, while net speculative positions in gold futures increased for the first time in six weeks, rising from 175.4 thousand to 183.8 thousand.
After oil prices continued rising on Friday, WTI crude oil traded by Monday morning at a new two-months high. Meanwhile natural gas Henry Hub futures prices settled lower after reaching a new decade high trading at time above $9.
The U.S. Baker Hughes Oil Rig Count declined by net two oil rigs in the Friday release to 574 oil rigs in operation. This marks the first weekly drop in activity since mid-March.
Due to the Memorial Day Holiday in the U.S. on Monday the schedule for the publication of the weekly crude oil and other energy commodity stockpiles levels moves by one day as the American Petroleum Institute (API) releases its Weekly Statistical Bulletin in Wednesday, while the Energy Information Administration (EIA) publishes its numbers on Thursday.
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