June 24 2021 Daily Forex Analysis - Finveo
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June 24 2021 Daily Forex Analysis
Daily News
• U.S. Treasury Secretary Janet Yellen on Wednesday warned Congress that the United States risks a debt default and a new financial crisis as soon as August if
lawmakers fail to act quickly to suspend or raise the federal borrowing limit.Yellen also sparred with Republican senators over inflation concerns, sticking to her line
that recent spikes in inflation data reflect transitory phenomena, including "supply bottlenecks" in the economy. She added that most measures of inflation
expectations remained well anchored, with those exceeding a year out are stable, at around the Federal Reserve's 2% target.
• Last week, silver fell to $25.55 and gold to $1,760 an ounce , giving back its post-April gains. There is an increase in precious metals, which started this week calmly,
today gold rose to $ 1,795 with a premium of 1% and silver rose to $ 26.22 with a premium of close to 2%. Early PMI data showed that euro zone business growth
accelerated at its fastest pace in 15 years in June as the easing of more lockdown measures and the unleashing of pent-up demand drove a boom in the bloc's
dominant services industry.Sales of new U.S. single-family homes fell to a one-year low in May, likely hindered by expensive raw materials such as lumber, which are
boosting the prices of newly built homes.
• The dollar edged marginally higher in early European trade Thursday, as traders digested diverse opinions from Federal Reserve policy makers over the likely timing
of the withdrawal of monetary stimulus.
• Oil prices gave up their early highs after reports that producer group OPEC+ affirmed it would add 500,000 barrels per day to its August output, after a 440,000-bpd
hike in July. For context, the 23-nation OPEC+ coalition kept 7 million bpd or more off the market between April 2020 and March this year, before gradually adding
to supply. WTI and Brent prices hit near three-year highs earlier in the day after the Energy Information Administration reported that U.S. crude inventories fell
7.614 million barrels last week, compared with analysts' expectations for a draw of 3.942 million barrels.
• Gold was down on Thursday morning in Asia as investors await U.S. economic data to gauge inflationary pressures further. A strengthening dollar also put a dent in
the yellow metal’s appeal. Although gold is widely viewed as a hedge against inflation, a Fed interest rate hike will increase the opportunity cost of holding it. On the
data front, the U.S. manufacturing purchasing managers’ index (PMI) was a better-than-expected 62.6 in June, while the services PMI was lower than expected at
64.8. Further U.S. data, including core durable goods orders for May, the GDP for the first quarter and initial jobless claims for the week, will be released later in the
day.
• The buying interest in the U.S. dollar keeps EUR/USD edgy on Thursday morning Asian’s session. After testing the high of 1.2263 in late
EUR/USD May, the Euro lost the battle against the greenback. It breached the coveted 1.1900 mark and tested the lows of 1.8477 in the week. At
the time of writing, EUR/USD is trading at 1.1937 for the day. The U.S. 10 year benchmark yields trade at 1.49% with gains of 0.34%. The
U.S. Dollar Index (DXY) follows the treasury yields and stands strong at 91.82. Mixed comments from Fed’s official on inflation and interest
rates outlook affects the greenback movement.
• Resistance: 1,1952 – 1,1985 - 1,2000
• Support: 1,1910 – 1,1890 - 1,1866
• GBP/USD price action has perked up a bit over the last few trading sessions. The Pound-Dollar seems to be ricocheting nicely off the 1.3800-
handle, though this follows a bearish breakdown of ascending trending support. The 400-pip slide from year-to-date highs by GBP/USD
GBP/USD largely corresponded with renewed covid concerns across the UK with selling pressure being exacerbated by the Fed’s recent hawkish
pivot. That said, near-term outlook for the Pound Sterling and GBP/USD will likely be dictated by the upcoming Bank of England interest
rate decision.
• Resistance: 1,4010 - 1,4035 – 1,4080
• Support: 1,3910 – 1,3860 - 1,3835
• Gold at critical technical limit. On the technical side, the precious metal's 50-day moving average crosses its 200-day moving
average while gold traders focus on Fed officials' comments. Gold is trading sideways around $1,770 as investors focus on
XAU/USD comments from Fed officials. While the 50-day moving average of an ounce of gold crossed the 200-day moving average on
Thursday, technical analysts interpret this as an uptrend. According to the relative strength index, gold, which is close to
oversold, is around $1,774 an ounce on Thursday morning.
• Resistance: 1785$ - 1795$ - 1805$
• Support: 1766$ - 1756$ - 1742$
• Oil was up Thursday morning in Asia, with continuously shrinking U.S. crude and fuel supplies contributing to the brightening
BRENTOIL fuel demand outlook. Brent oil futures inched up 0.05% to $75.23 and WTI futures were steady at $73.08. U.S. crude oil supply
data from the U.S. Energy Information Administration said stockpiles fell for a fifth week, the longest run since January 2021.
Crude oil supply from the American Petroleum Institute released the day before showed a draw of 7.199 million barrels for the
week ending Jun. 18.
• Resistance: 75,70$ - 76,35$ - 77,09$
• Support: 74,69$ - 74,07$ - 73,40$
• U.S. stocks were mixed after the close on Wednesday, as losses in the Consumer Goods , Oil & Gas and Finance sectors led
S&P500 shares higher as shares in the Utilities , Raw Materials and Telecommunications sectors led shares. At the close in NYSE, the
Dow Jones Industrial Average fell 0.21%, while the S&P 500 index fell 0.11%, and the NASDAQ Composite index gained
0.13%.
• Resistance: 4,258 – 4,282 – 4,310
• Support: 4,224 – 4,199 – 4,171Daily Stock News • Microsoft Corporation (NASDAQ:MSFT) Microsoft has grown significantly due to its dominance in cloud technologies and corporate software during the coronavirus period. Microsoft's annual expansion performance, which expanded 19% this year, reached a market value of 2 trillion, making it the second company to break this record after Apple. (Positive) • Amazon.com Inc. (NASDAQ:AMZN) The Federal Trade Commission, whose new chairwoman has been critical of Amazon.com will review the company's planned purchase of MGM, a source familiar with the matter said. The Wall Street Journal was the first to report that the FTC would review the deal. The FTC also has an antitrust probe open into Amazon, and has reviewed other mergers that the company has done. The agency shares the work of merger enforcement with the Justice Department. (Negative) • Netflix Inc. (NASDAQ:NFLX) Steven Spielberg will produce multiple new films for Netflix every year, the company said Monday, in a major deal that highlights how fully Hollywood has embraced streaming platforms. The partnership with arguably Tinseltown's top director is a coup for Netflix at a time when competition with streaming rivals including Disney+ and HBO Max is heating up. (Positive)
Currency Last Daily Change (%) Weekly Change (%) YTD Change (%)
EURUSD 1,1924 -0,03 0,50 -2,40
GBPUSD 1,3958 -0,05 1,06 2,10
USDJPY 110,85 0,10 -0,58 -6,86
USDCHF 0,9192 -0,08 0,26 -3,70
EURGBP 0,85427 -0,02 0,56 4,62
INDEX FUTURE Last Daily Change (%) Weekly Change (%) YTD Change (%)
SPA INDEX 4231,4 -0,11 1,88 13,45
GXA INDEX 15487 0,10 0,48 12,75
DMA INDEX 33827 0,20 2,03 11,52
Commodities Last Daily Change (%) Weekly Change (%) YTD Change (%)
GC1 Comdty 1782,3 0,34 0,81 -5,95
XAUUSD Curncy 1776,88 -0,10 0,73 -6,40
CLA Comdty 73,16 0,11 2,62 51,25
CO1 Comdty 75,27 0,11 2,39 45,31
Time Cur. Event
13:00 GBP BoE Interest Rate Decision (Jun)
14:30 USD Continuing Jobless Claims
14:30 USD Durable Goods Orders (MoM) (May)
14:30 USD GDP (Q1)You can also read
