Posted at 11 June 2021 / Categories Market Roundups
Market Roundup
•Canada Capacity Utilization Rate (Q1) 81.7%,80.6% forecast, 79.2% previous
•Russia Apr Trade Balance 10.59B,11.00B forecast, 10.02B previous
•US Michigan Jun Consumer Expectations 83.8,79.0 forecast, 78.8 previous
•US Michigan Jun Consumer Sentiment 86.4,84.0 forecast, 82.9 previous
•US June Michigan Current Conditions 90.6,92.3 forecast, 89.4 previous
•US Jun Michigan 5-Year Inflation Expectations 2.80%,3.00% previous
•US Jun Michigan Inflation Expectations 4.0%,4.6% previous
•U.S. Baker Hughes Oil Rig Count 365, 365 previous
Looking Ahead - Economic data (GMT)
•No data ahead
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro fell against the dollar on Friday as investors bet that European interest rates would stay low for longer, a day after currency markets ignored a high number of US inflation that is likely to be temporary. A day after the European Central Bank maintained its cautious stance, ECB lawmaker Klaas Knot said flexible fiscal rules would be needed for years as monetary policy remained tight. Immediate resistance can be seen at 1.2129( 38.2%fib), an upside break can trigger rise towards 1.2166 (5DMA).On the downside, immediate support is seen at 1.2092(Daily low), a break below could take the pair towards 1.2044 (23.6%Fib).
GBP/USD: The pound fell against the dollar on Friday after data showed the UK's recovery from the COVID-19 pandemic was slightly disappointing in April. UK GDP was up 27.6% from the record last year when the virus was rampant, but economic output remained 3.7 below its level in February 2020 before the pandemic led to lockdown measures. The British pound fell 0.1% against the dollar to $ 1.4150 after falling to a monthly low of $ 1.4071 on Thursday. Immediate resistance can be seen at 1.4148 (5DMA), an upside break can trigger rise towards 1.4180(23.6%fib).On the downside, immediate support is seen at 1.4111 (38.2%fib), a break below could take the pair towards 1.4091(Lower BB).
USD/CAD: The loonie weakened against its US counterpart on Friday, extending a weekly decline as the dollar rose across the board and national data showed industries operated at a higher proportion of capacity in the first quarter. The loonie traded 0.3% lower at 1.2135 a dollar, or 82.41 cents, after hitting its weakest intraday level since May 27 at 1.2140. For the week it was on track to fall 0.5%.Immediate resistance can be seen at 1.2177 (38.2%fib), an upside break can trigger rise towards 1.2257 (50%fib).On the downside, immediate support is seen at 1.2081 (23.6%fib), a break below could take the pair towards 1.2016 (Lower BB).
USD/JPY: The dollar strengthened against the Japanese yen on Friday after inflation data eased concerns about a possible long-term rebound in rising prices, and investors are now focusing on next week's Federal Reserve meeting for further guidance on monetary policy. Data showed U.S. consumer prices rose solidly in May, while jobless claims dropped to their lowest in nearly 15 months last week. Strong resistance can be seen at 109.57(11DMA), an upside break can trigger rise towards 109.71 (38.2%fib).On the downside, immediate support is seen at 109.25(50%fib), a break below could take the pair towards 109.00 (Psychological level).
Equities Recap
European stocks rose to a record high on Friday, fueled by hopes that major central banks will remain accommodating despite signs of rising inflation, while a miners' rally boosted UK stocks.
UK's benchmark FTSE 100 closed up by 0.65 percent, Germany's Dax ended up by 0.78 percent, France’s CAC finished the day up by 0.83 percent.
U.S. stock indexes were flat on Friday as focus turned to next week’s Federal Reserve System meeting, whereas technology and growth- exposed sectors gained after inflation data calmed fears over a long-term spike in consumer prices.
Dow Jones closed up by 0.04 percent, S&P 500 was last up by 0.18 percent, Nasdaq was up by 0.35 % percent.
Commodities Recap
Gold prices fell on Friday under pressure from a stronger dollar, with some investors betting that the rise in US consumer prices will be temporary and will not detract from current Federal Reserve monetary stimulus.
Spot gold had fallen 0.8% to $1,883.16 per ounce by 1304 GMT. U.S. gold futures were 0.6% lower at $1,885.50.
Oil prices hit a multi-year high on Friday, closing the third consecutive week of gains due to improved forecasts for global demand, as the increase in COVID-19 vaccination helped lift economic restrictions.
Brent crude futures settled at $72.69 a barrel, rising 17 cents after reaching their highest since May 2019. For the week, Brent was up 1%.
U.S. West Texas Intermediate (WTI) crude futures settled at$70.91 a barrel,up 62 cents