STOCKS

Wall Street stocks were mostly lower during the week to finish mostly in negative territory on Thursday as investors continued to give up on hopes that the Federal Reserve will deliver a cut to interest rates in June amid strong economic data. By the way, a fresh report showed that fewer workers applied for unemployment benefits last week than expected in another sign that the job market remains resilient despite elevated interest rates. As such, the S&P 500 fell 0.2% to mark a fifth straight loss, which is the longest losing streak since October. The Dow Jones Industrial Average edged up 0.1%, and the Nasdaq Composite slipped 0.5%. In Asia, equities plunged on Friday as risk aversion intensified after Israel launched a retaliatory strike on Iran less than a week after Tehran’s rocket and drone attack. Leading losses in the region, Japan’s Nikkei 225 slumping 2.5% on aggressive selling of semiconductor-related shares.

CURRENCIES

Fresh conflict in the Middle East sent haven assets including Treasuries and the dollar higher these days. The USD index briefly climbed to the 106.35 zone before retreating amid some profit-taking on Friday. The greenback has settled just above the 106.00 figure, staying elevated despite the lack of bullishness at this stage. Should the dollar fail to hold above 106.00 during the upcoming session, the US currency will finish the week lower after last week’s rally. The USD has been supported by safe-haven flows and ebbing Fed rate cut expectations amid stubbornly high inflation. Federal Reserve officials expressed fewer possibilities for rate cuts this year. Further escalation in Middle East tensions would add to bullish tone surrounding the safe-haven US currency. Should demand for the buck wane any time soon, the 106.00 mark will turn into resistance, with the next significant support coming in the 104.25 region.

OIL

Oil has been losing ground these days, struggling to attract renewed demand so far. After peaking above $92 for the first time since October last week, Brent crude switched into correction mode. In the process, the futures easily derailed the $90 psychological level to briefly approach the $86 figure during the previous session. Brent crude is now holding in the $87.50 zone, a recovery above which would add to recovery momentum in the oil market. Earlier in the week, oil was pressured by a rise in US commercial inventories. According to the EIA report, US crude inventories rose by 2.7 million barrels last week, nearly double market expectations. On the positive side, gasoline stocks fell by 1.2 million barrels and distillate stockpiles fell by 2.8 million barrels versus expectations for a 300,000-barrel drop. In the near term, oil is unlikely to extend the decline as concerns over demand and escalating tensions between Iran and Israel potentially impacting the oil market continue to trouble traders. Also, the US administration has reimposed restrictions on Venezuelan oil.

GOLD

Gold prices rallied to fresh all-time highs around $2,450 last week before retreating marginally amid overbought conditions. The XAUUSD pair looks relatively resilient these days, with prices looking ready to extend the ascent in the near term. Still, the downside potential persists at this stage, as investors may take profit more aggressively after the spike. On the weekly timeframes, the technical picture stays positive, with wider picture remaining upbeat after reaching fresh all-time highs. On the upside, the immediate significant target is now represented by the $2,415 zone, followed by $2,450. Downside risks are limited while above the $2,300 region. In the near term, the XAUUSD pair settle below the $2,400 mark should investors proceed to profit-taking. On the other hand, the overall outlook remains upbeat as the precious metal is likely to enjoy demand amid safe-haven flows that dominate global financial markets these days amid geopolitical tensions and waning Fed rate cut expectations.

CRYPTO

Bitcoin managed to shrug off some of the recent weakness as buyers reemerged on a dip below the $60,000 mark that was briefly derailed earlier on Friday for the first time since late February. After a bounce, the BTCUSD pair has settled above $64,000, adding more than 5% on the day. At the low of $59,700, BTC was almost 17% below its all-time high. Volatility in the cryptocurrency market remains elevated these days as investors get nervous in anticipation of a halving. The event is expected to take place on Friday or Saturday. Bitcoin halving has historically boosted the price of the leading cryptocurrency. But this time, unpredictable macroeconomic factors regarding the upcoming halving need a cautious approach. Besides, the digital currency reached its peak a month before the halving event, which has never happened before. Due to the continuing outflow of money from bitcoin investments like ETFs, the BTCUSD pair could fall in the immediate aftermath of the halving. Anyway, the longer-term outlook for the digital coin remains upbeat.