June 25 2021 Daily Forex Analysis - Finveo
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June 25 2021 Daily Forex Analysis
Daily News
• The agreement on the infrastructure package of US President Joe Biden supported risky assets. While the first futures in the record-breaking US indices on Thursday
showed that the positive mood continued, the risk perception increased in Asian indices. U.S. President Biden's announcement that an agreement was reached on a
$579 billion infrastructure plan increased the demand for risky investment vehicles. On Thursday, the S&P 500 and Nasdaq 100 hit new record highs.
• U.S. President Joe Biden announced that he has reached an agreement with Republican and Democrat senators on a $579 billion infrastructure plan. Speaking on
Thursday evening, Biden stated that with the senators, who have been negotiating for weeks, both among themselves and with the White House, they have
reached an agreement that will provide employment to millions of Americans and modernize the infrastructure in the country. The plan in question will only be
submitted to Congress for approval, along with a separate trillion-dollar plan prepared by Democrats, which Biden calls "human infrastructure" and opposed by
Republicans.
• The Bank of England kept the interest rate at 0.1 percent at its June meeting and did not change its asset purchase program. While the bank raised its inflation
forecasts, it stated that the increase in inflation would be temporary. The bank kept the interest rate at an all-time low of 0.1 percent, while keeping the asset
purchase program at £895 billion ($1.2 trillion). It has been stated that since May, global economic growth has been stronger than expected, especially in developed
countries. It was stated that global price pressures have increased, but this increase will be temporary when we look at the indicators regarding inflation
expectations. The bank raised its inflation forecast to 3 percent due to the rise in energy and commodity prices.
• Suspension of share repurchases and limitations on dividend payments imposed by the Fed at the start of the Covid-19 pandemic will expire on June 30, 2021. The
U.S. Federal Reserve (Fed) announced that the 23 largest US banks, which it has subjected to the "stress test", have capital criteria to continue lending to
households and companies in the event of a severe economic recession. The Fed announced the 2021 results of the annual stress test, which aims to measure the
soundness of the financial system. Accordingly, the capital of 23 banks that were stress-tested within the framework of the Comprehensive Capital Analysis and
Assessment (CCAR) remained “well above” the required minimum capital levels “under severe recession conditions”.
• FED's statements were perceived as hawkish last week, and therefore the demand for USD increased. USD weakened a little after
EUR/USD Powell's words. On the EU side, it is said that the economy is getting better, but there is no hawkish signal in monetary policy yet.
However, it should be noted that although the pigeon discourse is preserved, it is approached to falconry. Manufacturing and services
PMIs will be released today, while the U.S. core PCE will be released Friday. The EU Summit will be held on 24 – 25 June. Traded at 1.192
levels this morning, the pair can be viewed as 1.19 and 1.188 support, 1.195 and 1.197 resistance levels. We are looking forward to a
horizontal course If there is a deviation in the PMI data, it can create movement.
• Resistance: 1,1970 – 1,1988 - 1,2000
• Support: 1,1925– 1,1905 - 1,1890
• The pound tumbled after the BoE released its statement from the latest Monetary Policy Committee (MPC). The central bank kept policy
unchanged as expected but it was seen as a dovish meeting, triggering the slide of the pound. GBP/USD bottomed t 1.3888 and then
GBP/USD bounced to the upside finding resistance at 1.3930. Recently it tested the lows. The 1.4000 zones capped the recovery of the GBP/USD after
falling sharply last week. The pound failed to regain that area and started to pull back. On Thursday, the pair appears to be resuming the
downside. The next strong support is seen at 1.3850/60, a break lower would add more pressure.
• Resistance: 1,3940 - 1,4000 – 1,4035
• Support: 1,3912 – 1,3890 - 1,3860
• Gold investors focused on comments from Fed officials after U.S. President Joe Biden announced that a new spending
package had been agreed. While gold remained flat with the news of the $579 billion spending package in the U.S.,
XAU/USD supported by both parties, investors are focused on the inflation comments that may come from the Fed. Ounce gold, which
has been following a fluctuating course since the beginning of the week, closed the last week with the biggest decrease since
March 2020, and lost the previous two weeks. Closing April and May with gains, ounce of gold has lost more than 6 percent
since the beginning of June and is around $1,779.
• Resistance: 1781$ - 1789$ - 1800$
• Support: 1770$ - 1761$ - 1751$
• Oil is on track to close the week with gains for the fifth consecutive week ahead of next week's OPEC+ meeting. Oil is on track
BRENTOIL to close the fifth consecutive week with gains as inventories dwindle and the market tightens. Futures are up more than 2% in
the New York market this week, while Brent oil is at its highest level since October 2018. OPEC+ is expected to increase
production at its meeting on 1 July. Estimates for Brent oil to be as high as $100 a barrel are also rising as fuel demand recovers
in some key regions, including the U.S. and Europe. With the collapse of the nuclear deal talks, extra Iranian oil is not expected
to enter the markets. Brent oil for August delivery was up 0.2 % at $75.69 a barrel on the London ICE Futures Europe market.
• Resistance: 76,02$ - 76,76$ - 77,37$
• Support: 75,08$ - 74,49$ - 73,80$
• Wall Street stocks closed higher on Thursday, with the S&P 500 and Nasdaq Composite both finishing up the session at
S&P500 fresh record highs. At the close, the Dow Jones Industrial Average was up 0.95% at 34,196.82, while the S&P 500 was 0.58%
firmer at 4,266.49 and the Nasdaq Composite saw out the session 0.69% stronger at 14,369.71. The Dow closed 322.58
points higher on Thursday, erasing losses recorded in the previous session.
• Resistance: 4,277 – 4,296 – 4,316
• Support: 4,246 – 4,225 – 4,203Daily Stock News • Nike Inc (NYSE: NKE), has released its full-year financial sales. Shares of the company rose 13% on better-than-expected quarterly earnings and revenue announcements. In North America, Nike's largest market, fourth-quarter revenue doubled to $5.38 billion, beating the average estimate of $4.31 billion. Consumers, who stayed at home for more than a year and were content with comfortable pajamas and pajamas, returned to their routines thanks to quick vaccinations and bought sneakers for jogging and walking. Total revenue reached $12.34 billion, nearly double from a year ago when the pandemic was at its height. (Positive) • Carnival Corp (NYSE: CCL), reported more than $2 billion quarterly losses as the 15-month suspension of flights due to the COVID-19 pandemic negatively impacted. The cruise operator has recorded little revenue over the past few quarters after a coronavirus outbreak on one of it's ships forced US health regulators to order a no sailing. It ended the second quarter with $9.3 billion in cash and short-term investments, up from $11.5 billion at the end of the first quarter, as the company spent the second quarter preparing its ships for voyages. Also, the industry is starting to see a resurgence in business in recent weeks as ships begin to sail again from the Caribbean and the United States. Analysts also expect revenue growth to be stable in the coming quarters, driven by suppressed demand for tourism travel and the rapid availability of vaccines in the U.S. Carnival stated that 42 ships in its 91-strong global fleet will depart by November, representing 52% of its total capacity. Carnaval, European brands Aida and Costa Cruises have resumed operations. (Neutral) • Visa Inc (NYSE: V), said it has agreed to a €1.8 billion ($2.2 billion) acquisition of European open banking platform Tink. Founded in 2012, Sweden-based Tink provides banks and other financial firms with easier access to consumer financial data. It is used by more than 3,400 banks and other institutions, as well as more than 250 million customers across Europe. Visa also said that Tink's deal is subject to regulatory approvals, while Tink will retain the brand and management team, and its headquarters will remain in Stockholm. Visa also noted that the Tink acquisition includes cash and holding incentives, adding that the deal will have no impact on the previously announced share repurchase or dividend policy. (Positive)
Currency Last Daily Change (%) Weekly Change (%) YTD Change (%)
EURUSD 1,1941 0,07 0,64 -2,26
GBPUSD 1,3927 0,04 0,85 1,88
USDJPY 110,84 0,03 -0,57 -6,85
USDCHF 0,9176 0,02 0,43 -3,54
EURGBP 0,85737 -0,05 0,20 4,24
INDEX FUTURE Last Daily Change (%) Weekly Change (%) YTD Change (%)
SPA INDEX 4256,1 0,58 2,47 14,11
GXA INDEX 15609 0,25 1,26 13,63
DMA INDEX 34206 0,36 3,17 12,76
Commodities Last Daily Change (%) Weekly Change (%) YTD Change (%)
GC1 Comdty 1775,2 -0,02 0,41 -6,33
XAUUSD Curncy 1779,58 0,23 0,86 -6,27
CLA Comdty 73,5 0,25 3,07 51,91
CO1 Comdty 75,76 0,26 3,06 46,25
Time Cur. Event
14:30 ABD Personal Consuption Expenses (June)
14:30 ABD Personal Consuption Expenses (Annual)
16:00 ABD Michigan Consumer Confidence IndexYou can also read
