USDOLLAR unwinds daily overbought condition.

The US2000 tracks the performance of 2,000 small-cap US stocks. It is generally a more volatile index, as smaller companies have more limited access to financial resources than big companies. Many view the US2000 as a barometer of the US economy, due to its sensitivity to macroeconomics. Thus, its underperformance is worrisome.

Last week saw inflation coming in ahead of expectations. This has led to markets repricing the path of Fed hikes. US GDP came in better that expected but German GDP reflects technical recession. After a 90-minute call on Saturday, there is a debt ceiling deal which needs to be ratified by both Houses. Non-Farm Payrolls will be released this Friday, providing the next clue for rates. Listen in for these…

The core PCE was higher than the consensus of 4.6% y/y, printing at 4.7% y/y. The previous reading was 4.6% y/y. On a monthly basis, it came in at 0.4% (4.9% - annualised), higher than the 0.3% expected.

The rand is trading near R19.70 against the USDOLLAR following a 50bps hike by the South African Reserve Banks. The SARB said that the hike was necessary to combat rising inflation but conceded that further rand weakness can be expected. At one stage yesterday it traded as low as R19.81 to the greenback.

Initial jobless claims came in at 229K, lower than the expected 249K. Moreover, last week’s number was revised downwards from 242K to 225K.

Following the negotiations over the debt ceiling, Fitch Ratings has expressed concern regarding the United States' debt, resulting in a placement of the nation's highest-rated bonds on a "Rating Watch Negative."

The German economy contracted over the last two quarters, which is defined as a technical recession. Q1 GDP, revised a second time, came in at -0.3%. This follows Q4 2022’s GDP of -0.5%. Germany has faced considerable challenges following Russia's invasion of Ukraine and the subsequent choice made by European leaders to sever relations with Moscow.

Apple, the renowned technology giant, made a significant declaration on Tuesday regarding their future. They unveiled a ground-breaking partnership with Broadcom, a leading company in the industry, for a substantial agreement spanning multiple years and involving billions of dollars. The focus of this collaboration is centred around the development and production of state-of-the-art 5G radio frequency components and wireless chips. It is noteworthy that a portion of these advanced 5G…

During the last policy meeting, Fed officials reached a unanimous decision to raise interest rates, despite considerable deliberation on whether it would be wiser to pause the tightening efforts. The minutes of the FOMC’s meeting held on 2-3 May, will be released today, and will provide valuable insights into the extent of the officials' consideration of maintaining interest rates and whether any committee members advocated for a pause.

The bitcoin daily chart is trying to break out of its bearish channel between the lower blue and red bands. To this end, we are keeping an eye on its RSI.