Forexlive Americas FX news wrap 8 May

• US stocks mixed. S&P ends the day unchange in a dead heat
• Goldman Sachs oil price forecasts show Brent to average US$82 / barrel through 2025
• What is the technical roadmap for the GBPUSD through the BOE interest rate decision.
• Crude oil settles at $78.99
• Are mortage rates what are making consumers so miserable?
• Fed’s Cook: Households remain resilient but watching rising delinquency rates
• US treasury auctions off 10-year yields at high yield at 4.483%
• More from Fed’s Collins: Very strong jobs market has bolstered consumer spending
• European major stock indices end the day mostly higher. German Dax &UK FTSE at records
• Atlanta Fed GDPNow jumps to 4.2% versus 3.3% last
• Feds Collins: Expects demand will need to slow to get inflation to 2%
• Fed Gov. Jefferson scheduled to speak but the topic is not policy focused
• Goldman Sachs revises GBP/USD forecasts lower ahead of BoE meeting
• US March wholesale inventories (revised) -0.4% versus -0.4% preliminary
• Presidential elections 2024: what do they mean for investors?
• ECBs Holzmann: Does not see a reason to lower rate to much too quickly
• Conviction is the backbone of a winning macro trade. Join me for a webinar on finding it
• ECBs Wunsch: I see a path for initiating rate cuts this year
• US Justice Dept is examining if Tesla permitted wire and securities fraud in self driving
• Kickstart the FX trading day for May 8 w/ a technical look at EURUSD, USDJPY and GBPUSD
• The USD is the strongest and the AUD is the weakest as the NA session begins
• ForexLive European FX news wrap: Dollar holds steadier as yields look to bounce
• US MBA mortgage applications w.e. 3 May +2.6% vs -2.3% prior

For the 2nd day in a row, there was minimal economic data. Just final wholesale inventory data for the month of March was on the economic calendar. It fell -0.4% unchanged from the preliminary report and erased a 0.4% gain.

There was some Fedspeak from Fed’s Collins and Cook.

Boston Federal Reserve president Collins expressed views that for inflation to decrease to the 2% target, there needs to be a slowdown in demand. She believes that the current Fed policy is appropriately positioned for the existing economic outlook and describes the monetary policy as moderately restrictive. Collins highlighted the risks associated with cutting interest rates too prematurely and does not anticipate that the recent jump in productivity will sustain. She noted that companies are in a good position to handle increases in wage growth and wasn’t surprised by recent setbacks in inflation rates. Collins remains optimistic that the Fed can achieve 2% inflation within a reasonable timeframe, supported by a robust job market which is becoming more balanced and has continued to bolster consumer spending. However, she anticipates that some factors contributing to economic resilience might diminish and maintains that the current monetary policy should help in slowing the economy. She also pointed out that it is too early to determine the full restrictiveness of the current monetary policy.

Meanwhile Federal Reserve’s Lisa Cook weighed in post-FOMC rate decision last week and noted that while households continue to show resilience, there is a growing concern over rising delinquency rates. She observed that companies have sufficient earnings to manage their debt payments effectively, and financial institutions are well-equipped to handle potential shocks. Cook also addressed concerns related to commercial real estate, describing the risks as significant yet manageable. Additionally, she commented that the growth of private credit appears not to have undermined the resilience of the financial system.

In the Forex market, the USD was the strongest of the major currencies today. The AUD inched out the JPY for the weakest of the major currencies. The EURUSD, USDCHF and NZDUSD each had very narrow trading ranges of 23 pips or 22 pips. The GBPUSD range was 43 pips but that was still about 51% of the normal range over the last month of trading.

Tomorrow at 7 AM ET, the BOE will announce their interest rate decision. For a technical roadmap through that report, CLICK HERE

Stocks today closed mixed with the Dow higher, the S&P literally unchanged and the Nasdaq marginally lower:

• Dow rose 0.44%
• S&P unchanged
• Nasdaq down -0.18%

In the US debt market, the yield are ending higher after an average 10-year note auction:

• 2 year yield 4.840%, +1.3 basis points
• five year yield 4.500%, +3.0 basis points
• 10 year yield 4.499%, +3.9 basis points
• 30-year yield 4.642%, +3.7 basis points

This article was written by Greg Michalowski at www.forexlive.com.