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Market Update – May 27 – USD 1-month low, Stocks Rally, Yields Ease

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USD sinks to 1-month low (USDIndex 101.43) as CB easing pressures absorbed, despite GDP slipping to -1.5% from -1.3% & Pending Home sales at -3.9% from -1.6%. Stocks had a very strong day on weaker USD (NASDAQ +2.68%) and Yields slipped. Asian markets followed US lead (Nikkei +0.66%, Hang Seng +2.07%) and European FUTS are higher.  BOJ’s Kuroda & PM Kishida, talk up YEN and want it stabilized, see core CPI at 2% for next 12-months.

  • USDIndex sinks further to 4-week lows trades at 101.55. (-1.5% this week, after -1.37% last week)
  • EquitiesUSA500 +79 (1.99%) at 4057, US500FUTS at 4050 now. Discount Retailers lead markets higher on good Earnings – Dollar Tree +21.87%, Macy’s +19%, Dollar General +13% TSLA +7% NVDA +5%
  • Yields 10-year yield edged lower to 2.75% at close and trades at  2.76% now.   
  • Oil & Gold had mixed sessions – USOil rallied after a cautious week back to test over $114, trades at $13.70 now, Gold is holding over $1850 at $1854.  
  • Bitcoin continues to weaken under $30K at $28.6k, having touched $27.9k yesterday.
  • FX marketsEURUSD up to test 1.0750, breaching 1.0700 again, USDJPY capped  under 127.00, having tested 126.50 Cable to 1.2625, from 1.2540 yesterday.  

Overnight – JPY – Tokyo Core CPI in line, (1.9%) AUD Retail Sales  in line (0.9%)

Today – US PCE Price Index, Personal Income & Consumption, Speech from ECB’s Lane.

Biggest FX Mover @ (06:30 GMT) NZDUSD (+0.51%) gave up yesterday’s declines to 0.6450 and retook 0.6500 today, trades at 0.6512 (16-day high). MAs aligning higher, MACD histogram positive & holds 0 line, RSI 65 & rising, H1 ATR 0.0010, Daily ATR 0.0077.

Click here to access our Economic Calendar

Stuart Cowell

Head Market Analyst

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With over 25 years experience working for a host of globally recognized organisations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, charts and sentiment work together to provide trading opportunities across all asset classes and all time frames.


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