Brent: Future is Still Sunny
What happened? Brent returned to the rising channel on Wednesday by gaining 4% during the trading session…
GBP/USD : is ripping to its highest since April of 2018
Information is not investment advice
Ichimoku Kinko Hyo
EUR/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
Fibonacci Levels
XAG/USD: Silver stands above 23.6% retracement area. Bullish pressure is growing during the last hours.
EU Market View
Asian equity markets traded mixed after lacking direction from the US and ahead of upcoming key risk events. Asian equity markets hit a one-month peak on Tuesday, buoyed by the global stock rally, while gold flirted with five-month highs ahead of European and U.S. data this week that will likely offer clues on the health of the world economy. The world's recovery from the COVID-19 pandemic remains patchy with exports reviving but broader economic activity still dampened by new measures to contain fresh outbreaks.
The dollar weakened in early European trade Tuesday, slipping to multi-month lows against many of its peers, as traders look to the release of closely-watched NFP data later in the week for clues surrounding the Federal Reserve’s policy thinking. Fed officials have repeatedly stated that they expect price pressures to be transitory and monetary stimulus to stay in place for some time, especially as the labor market, while improving, remains far below the levels of employment seen before the start of the pandemic.Vice Chair Quarles and Governor Brainard will both be speaking at separate events later Tuesday, but it’s the nonfarm payrolls numbers on Friday which will attract the most attention this week, especially after the much weaker than expected rNFP a month ago.
Gold added to its biggest monthly gain since July as the dollar weakened and investors awaited fresh data on the U.S. economy to feed the debate about inflation. Bullion wiped out losses earlier this year with a 7.8% rise over May amid signs of accelerating inflation. Fresh virus outbreaks and patchy economic data have also boosted gold, which is again drawing investors via exchange-traded funds -- a major driver of last year’s rally.
Oil prices rose on Tuesday, with Brent topping $70 and trading at its highest since March, as optimism grew over the fuel demand outlook during the summer driving season of the United States, the world's top oil consumer.
Looking ahead, highlights include EZ, UK, US Final Manufacturing PMI, EZ Flash CPI, US ISM Manufacturing PMI, Fed’s Quarles, Brainard, BoE’s Bailey speeches and JMMC/OPEC+ meetings
EU Key Point
- UK Nationwide house prices +1.8% vs +0.8% m/m expected.
- BOE's Ramsden: There is a risk that demand gets ahead of supply.
- RBA leaves cash rate unchanged at 0.10% in June monetary policy decision.
- Germany reports 1,785 new coronavirus cases, 153 deaths in latest update today.
- Switzerland Q1 GDP -0.5% vs -0.4% q/q expected.
- China data - Caixin manufacturing PMI for May 52.0 (vs. expected 52.0).
- AUD/USD continues its move higher - iron ore in China is up on the steel news.
Gerasimos Papagiannis
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