News and analysis

After record highs on Wall Street last week, attention now turns to earnings from Nvidia, the darling of Wall Street, to see whether the AI stock can push for further record highs.

Our silver analysis suggests that the precious metal could potentially rise far beyond the $30 level, if the recent gains by gold and copper are anything to go by and in light of the big technical breakout from a multi-year consolidation pattern.

GBPUSD Analysis: with the upcoming BOE statement, CPI metrics, and Flash PMI results, April highs are challenged for further bull runs

US stocks head for a quiet open as the CPI-fueled rally runs out of steam. Several Fed speakers have warned that rates need to stay high for longer, and they want to see more evidence of inflation cooling before cutting rates. The Dow Jones remains below the key 40,000 level that it breached yesterday. There is no high-impacting data today. Attention will remain on Fed speakers.

Welcome to another edition of Forex Friday, a weekly report in which we highlight selected currency themes. In this week’s report, we will discuss the US dollar, euro and Aussie, and look ahead to the next week.

China’s fledgling economic recovery suffered another setback in April with activity indicators mostly disappointing, especially regarding the beleaguered property sector. The news weighed on the Chinese yuan and other Asian currencies, such as the Japanese yen and Australian dollar.

We'll need to wait until next week's COT report to see the full damage of the US inflation report to USD long positioning, but with key levels holding as support we may find mean reversion works in the dollar's favour next week.

The upside in copper flagged last week has played out nicely, delivering a fresh contract high for the red metal on COMEX futures. However, the price action over the latter parts of this week has not been convincing, warning of growing near-term downside risk.

AUD/USD and the ASX 200 have flourished this week thanks to renewed bets of Fed cuts, even though softer employment and wages data for Australia rekindled hopes of a lower RBA cash rate.