Tuesday, June 21, 2022

THINGS TO KNOW TODAY

Morning traders, hope you are well and safe

US STOCKS

edged higher yesterday in US session while the cash markets closed for holiday after suffering heavy losses last week on worries of tightening monetary policy and economic recession. European and Asian indices closed mixed.

Fed member Bullard commented that inflation could stay higher for longer and that the Fed would have to follow through on the forward guidance.

DXY

eased to 104.21 after a quiet session, with the greenback declining against all major currencies except for JPY, which further weakened to 135.06.

Look for the US dollar to break out of the current consolidative range following the US Bank holiday. Anticipate brief dollar weakness before a likely recovery leading up to the US session.

As US Banks come back from the holiday, the DXY is expected to break out of the current consolidation to form a directional bias. Although there is no major news for the US today, the economic uncertainty continues, therefore expect to see increased volatility in the DXY

MAJOR FOREX

EURUSD climbed above 1.0500 overnight. ECB president reiterated the plans to raise interest rate by 25bp in July, while the market implied a 50 bp hike.

GBPUSD ended higher at 1.2241.

AUDUSD was up to 0.6953 with the RBA minutes today, with market pricing in another 50bp hike in July.

NZDUSD closed higher at 0.6331. New Zealand Q2 consumer confidence fell to record low.

USDCAD dropped below 1.3000.

BITCOIN-OIL-GOLD

WTI crude was steady at $111.27 as investors are re-assessing the tight supply and weakling demands. Gold was slightly down to $1,838.12. Gold price sits in a tight range between 1850 and 1830 with no events pushing prices in either direction. As strength of the US dollar remains uncertain, anticipate for price to break out of the range to the upside as Gold maintains its safe haven appeal.

Bitcoin was little changed at $20,412 near the lowest level since December 2020. Daily gap closing up..

News today

CAD

Retail Sales Ex Autos MoM (Apr)

Retail Sales YoY (Apr)

Retail Sales MoM (Apr)

USD

Existing Home Sales (May)

Existing Home Sales MoM (May)

Trade safe, stay safe

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