Daily Market Update, June 10
While today, as the most important day of the week, we are waiting for the ECB meeting and CPI data from the US, we are expecting to have a very volatility market, so please make sure you are keeping your risk management under control and did enough search before opening any new position.
Besides them, we do also have the OPEC monthly reports nd US weekly Initial jobless Claims, and later German Buba Balz Speaks. Today is expected to be a very volatile day.
USD Index: Yesterday, the US dollar index followed the free-fall of 10-year bond yield trends; however, in the last hours, it gained over 90.10. The US then year Treasury Yields fall to 1.482, the lowest level since March. DXY currently does not follow any specific direction and anything depends on CPI data later today.
Euro: It is mainly steady but a bit looks weaker against USD. ECB expectations are that holding the current policies and rates, while higher than expected US CPI, will support the dollar, so the risk of downtrend is much higher than uptrend.
GBP: UK and the EU on Northern Ireland trade barriers were on the verge of a breakdown. The pound was under pressure against the US dollar. With breaching under 1.4115, Cable recorded a decline of more than 0.9% from the high point in the month. For the same reason of stronger USD, Cable is also expected to hold its downtrend. Breaching under 1.4085 will open the doors for lower levels.
Yen: As the other US crosses, Yen declined against USD, and USDJPY rebounded above 109.59. The next trend directly depends on market reaction to CPI data. 109.30 is the critical support level.
CAD: After the Canadian bank interest rate decision and monetary policy meeting, CAD was weaker against most currencies. USDCAD rose more than 0.5% above 1.2120
AUD: Aussie continued to weaken against the US dollar, closing down by more than 0.5%. Despite the first hour's gain, it is again back under pressure. 0.7715 is the next support.
Gold: With stronger USD, it is under pressure. However, volatility day is what we are mostly expecting to see for Gold. Stronger USD will put the Gold under pressure; however, higher inflation also supports the Gold as well at the same time.
Oil: EIA inventory fell more than expected and failed to bring support to the oil market. US crude oil first rose and then fell to 69.10 US dollars per barrel earlier today. WTI seems to be under pressure next few days, as correction in the stock market can not help the Oil market. Today OPEC monthly report also must be watched closely.