Markets Report - 09 May 2022

A daily breakdown of the markets for the 9th May 2022, provided to you by Sterlex.

🇪🇺💶EU going ahead with Oil ban on Russia, some retaliation seen from Russian officials, so as this proximity continues to the War in Ukraine, we are hearing chatter of recession risks for the EU given the energy debacle and weaponizing, Gas, Oil, import export. Euro seems over bought in EURGBP, EURAUD, however due to risk price swings, this upper price swing could extend further so not taking high conviction trades in these assets at this time.

Headline risk still key from ECB talking up more rate hikes than Lagarde has originally suggested.

🇬🇧💷As we anticipated BOE C.Mann joins the hawks hawks Saunders & Ramsden by voting 3 against 6 (3 wanted 50BIPS), suggesting a Hawkish BOE which hurt £ risk & UK assets momentarily. FX Volatility and price shifts continue to remain prevalent however keeping half an eye on the prices we mentioned in GBPNZD, GBPAUD (89/ 90 handle & 1,7513, 1.7452 handles) in case pullbacks seem appealing to buy. Large price swings & uncertainty along with the $ remaining so bid, still suggest risky taking longs in these pairs.

🇺🇸 🏦As anticipated on 11th Aril the $ continues to push 104 handle and clean breaks the Mar 2020Price areas, despite some risk aversion headlines slowing into the close last week. We noted 104 and 103.82 breaking were key points & despite speculative sellers around here, the $ remains bid as UK Session develops.