The dollar is rising across the board
Yesterday the U.S. published data mixed the market. Dow and SP500 both closed higher, but Nasdaq was under pressure. In summary, these data show that the U.S. job market is gradually improving. As the state government tightens unemployment relief measures and the opening of enterprises, most Americans will eventually return to work. In addition, the data released at the same time also includes the actual annualized quarterly rate of GDP in the first quarter. After the revision, the data recorded 6.4%, which was consistent with the previous value but did not perform as well as market expectations of 6.5%.
And while U.S. 10 Year Treasury yields are rising back above 1.2%, the market mood is optimistic ahead of another massive economic data today, including Core PCE and reports about Biden`s 2022 big budget. According to the news, the U.S. President is seeking a $6 trillion budget for the fiscal 2022 budget, continuing his large infrastructure spending plans.
For today, eyes will be on Personal Income, Personal Spending, and Core Personal Consumption Expenditure (Core PCE) figure, which is the Federal Reserve`s preferred measure of inflation. The market is waiting to see above 2% YoY, the bank`s target.
FX Market:
DXY: The U.S. dollar index gains moderately by about 0.2% to trade above 90.10.
Euro closed slightly higher against the U.S. dollar at 1.2193 but today in early trading house, with USD rebound, fell back under 1.2180.
GBP: As the Bank of England member Frieger said that the central bank might consider raising interest rates next year, yesterday the pound rebounded strongly against the U.S. dollar by nearly 0.8% to a high of 1.4219, but today, same as Euro, USD comeback pushed it under pressure and currently cable trading at 1.4185, lowering 0.15%.
Yen: Japanese yen one of the weakest currencies among the major currency pairs, trading a bit under the 110.00 level (109.90), and with stronger USD, higher numbers are likely to be seen. According to local media, the Japanese government may announce an extension of the state of emergency until June 20.
Kiwi: The New Zealand dollar against the U.S. dollar recorded a 4-day consecutive rise but still under pressure at a 4-month high, closing at 0.7291. Same as other major currencies against the USD, NZDUSD also decreased sharply today under 0.7250, losing more than 0.7%
Aussie: Yesterday, the Australian dollar against the U.S. dollar closed up slightly at 0.7744, and today in the Asian season and at the beginning of the European market 0.7724, down 0.21%.
Loonie: The Canadian dollar gave up some parts of its overnight gains to 1.2060 against USD and currently trading at 1.2085.
Commodities:
The precious metals market is relatively calm.
Gold: After returning from $1,912 and trading one day around $1,900, Gold finally breached this level lower and sought lower numbers.
Silver: Silver closed moderately at $27.79 per ounce and fluctuated in the space of 77 cents this week. Same as Gold, Silver also losing the ground and trading lower, under $27.60.
WTI: U.S. crude oil maintained its upward trend following recent reports showing that existing vaccines effectively against variant viruses. As of yesterday`s close, U.S. oil recorded a value of $66.51 per barrel, with nearly 6%gain during the week. Currently a bit under pressure at $66.60, event thought earlier touched $67.10.
Cryptocurrencies
Bitcoin is currently trading under $37,000 and Ethereum under $2,600. Volatility remains elevated and expected to increase over the weekend. Reports show that BTC is seeking 27-28K.
