Please disable Ad Blocker before you can visit the website !!!
thumbnail

Forex News May 07, 2022

by Seerat Fayaz   ·  May 7, 2022  

Forex News May 07, 2022

by Seerat Fayaz   ·  May 7, 2022  

Indexes

The S&P 500 and NASDAQ finish lower for the fifth week in a row. Following earlier gains, US stocks had a bad week.

A week ago today, the NASDAQ index was down more than 13% for the month of April.

The market rallied on Monday, Tuesday, and Wednesday, kicking off the month of May on a high note.

 However yesterday’s sharp declines, and follow through selling today push the major indices lower on week. In other words, the markets snatched victory from the jaws of defeat. The final figures are as follows:

Dow industrial average -98.6 points or -0.3 percent at 32899.38.

Last Friday, the index closed at 32977. This week, the index fell -0.23 percent.

S&P index -23.51 points or -0.57 percent at 4123.35. The index closed at 4131.92 last Friday.

The S&P 500 and NASDAQ finish lower for the fifth week in a row. Following earlier gains, US stocks had a bad week.

A week ago today, the NASDAQ index was down more than 13% for the month of April. The market rallied on Monday, Tuesday, and Wednesday, kicking off the month of May on a high note.

However yesterday’s sharp declines, and follow through selling today push the major indices lower on week. In other words, the markets snatched victory from the jaws of defeat. The final figures are as follows:

Dow industrial average -98.6 points or -0.3 percent at 32899.38. Last Friday, the index closed at 32977. This week, the index fell -0.23 percent.

S&P index -23.51 points or -0.57 percent at 4123.35. The index closed at 4131.92 last Friday.

Bonds

The US 10-year yield has reached a new high dating back to November 2018.

Forecasts a 2019 high of 3.252 percent

The US 10-year yield is trading at 3.134 percent, just off the day’s and week’s highs.

The current yield stands at 3.126 percent. The weekly chart shows that the yield has reached its highest level since November 2018. In 2018, the high yield was 3.248 percent.

That is the next target on the upside. Move above that yield and the yield is at the highest level since April 2011.

In early January 2022, the rate was at 1.529 percent. The current yield is 1.59 percent higher than the low.

The current Fed rate is not particularly high. The Fed is still 100 to 150 basis points away from a neutral rate of 2.0 percent to 2.5 percent (where rates peaked). As a result, the desire to arrive as soon as possible. The Fed is falling behind the curve and the market. The market is on top.

However, if the terminal rate is higher, there is room to the upside given the price action from the last time rates were near this level in relation to the Fed Funds target.

#edgeforex #forextrading #forexsignals #forex #index #lower #markets #nasdaq #us #week #bond #yield #treasury index