America Rally: Dollar Gains As Currency Investors Look For Aggressive Central Banks, Wall Street Little Changed, Gold Slides, Oil Hits Multi-Year Highs – June 12, 2021
• Capacity utilization rate in Canada (Q1) 81.7%, 80.6% forecast, 79.2% previous
• Russia April trade balance 10.59B, forecast 11.00B, previous 10.02B
• US Michigan consumer forecast for June 83.8 79.0, 78.8 previous
• Consumer sentiment in the United States of Michigan in June 22.214.171.124 forecast, previous 82.9
• Current US conditions in June Michigan 90.6 92.3 forecast, 89.4 previous
• 5-year inflation expectations in the United States in June Michigan: 2.80%, 3.00% previous
• Inflation expectations in the United States in June Michigan 4.0%, previous 4.6%
• Number of American oil rigs Baker Hughes 365, previous 365
Future Outlook – Economic Data (GMT)
• No data to come
Future Outlook – Economic Events and Other Releases (GMT)
• No significant event
EUR / USD: The euro fell against the dollar on Friday as investors bet European interest rates would stay low for longer, a day after currency markets ignored a high US inflation number that is expected to be temporary. A day after the European Central Bank maintained its cautious stance, ECB lawmaker Klaas Knot said flexible fiscal rules would be needed for years as monetary policy remained tight. Immediate resistance can be seen at 1.2129 (38.2% fib), a bullish breakout can trigger a rise towards 1.2166 (5DMA). On the downside immediate support is seen at 1.2092 (daily low), a break below could take the pair towards 1.2044 (23.6% Fib).
GBP / USD: The pound fell against the dollar on Friday after data showed the UK’s recovery from the COVID-19 pandemic was slightly disappointing in April. UK GDP grew 27.6% from last year’s record when the virus was rife, but economic output remained 3.7 below its February 2020 level before the pandemic triggered action lock. The pound fell 0.1% against the dollar at $ 1.4150 after falling to a monthly low of $ 1.4071 on Thursday. Immediate resistance can be seen at 1.4148 (5DMA), a bullish breakout can trigger a rise towards 1.4180 (23.6% fib). On the downside immediate support is seen at 1.4111 (38.2% fib), a break below could take the pair towards 1.4091 (lower BB).
USD / CAD: The loonie weakened against its US counterpart on Friday, prolonging a weekly decline as the dollar rose across areas and national data showed industries were operating at a higher proportion of capacity in the first trimester. The loonie traded down 0.3% to $ 1.2135, or 82.41 cents, after hitting its lowest intraday level since May 27 at 1.2140. For the week, it was on track to drop 0.5%. Immediate resistance can be seen at 1.2177 (38.2% fib), a bullish breakout can trigger a rise towards 1.2257 (50% fib). On the downside, immediate support is seen at 1.2081 (23.6 % fib), a break below could take the pair towards 1.2016 (Lower BB).
USD / JPY: The dollar strengthened against the Japanese yen on Friday after inflation data eased concerns about a possible long-term rebound in price increases, and investors are now focused on meeting the the Federal Reserve next week for further guidance on monetary policy. Data showed consumer prices in the United States rose sharply in May, while jobless claims hit their lowest level in nearly 15 months last week. Strong resistance can be seen at 109.57 (11DMA), a bullish breakout can trigger a rise towards 109.71 (38.2% fib). On the downside immediate support is seen at 109.25 (50% fib), a break below could take the pair towards 109.00 (Psychological level).
Summary of actions
European stocks hit an all-time high on Friday, fueled by hopes that major central banks will remain accommodative despite signs of rising inflation, while a rally by miners boosted UK stocks.
The British benchmark FTSE 100 closed up 0.65%, the German Dax 0.78%, the French CAC ended the day up 0.83%.
U.S. stock indexes were flat on Friday as attention turned to next week’s Federal Reserve meeting, while tech and growth sectors advanced after inflation data calmed down fears of a long-term surge in consumer prices.
The Dow Jones closed 0.04% higher, the S&P 500 was last up 0.18%, the Nasdaq was up 0.35%.
Summary of commodities
Gold prices fell under pressure from a stronger dollar on Friday, with some investors betting that the rise in consumer prices in the United States will be temporary and will not hurt the Federal Reserve’s current monetary stimulus .
Spot gold had fallen 0.8% to $ 1,883.16 an ounce by 1:30 p.m. GMT. US gold futures fell 0.6% to $ 1,885.50.
Oil prices hit a multi-year high on Friday, closing the third consecutive week of gains on improving global demand forecasts as the increase in COVID-19 vaccination helped lift restrictions economic.
Brent crude futures were at $ 72.69 a barrel, up 17 cents after hitting their highest level since May 2019. For the week, Brent was up 1%.
US West Texas Intermediate (WTI) crude futures were at $ 70.91 per barrel, up 62 cents