Market Update – June 6 – USD & Stocks steady but inflation worries still loom

USD remained steady (USDIndex 102.10) Stocks recover a tad from Friday’s post NFP sell off (NASDAQ -2.47%) and Yields also hold onto gains (2.957%). Asian markets mixed in thin trading today (AUD & NZD closed along with many EZ countries). Central bank outlooks, China’s virus lockdowns and inflation data remain in focus – NFP showed a tight jobs market and Earnings holding up, so FED may need to act again in September, Saudi Arabia have increased oil prices & US will allow 2 companies to import Venezuelan oil into Europe. MUSK predicted a gloomy US economy (following Dimon’s comments) and suggested TESLA needed to shrink its workforce by 10% (only to then withdraw the comment), US to pause, for 24mths, tariffs on Solar Panel imports, Kuroda “Japan will not tighten monetary policy”.

  • USDIndex rallied to 102.25, Back to 102.00 now.
  • EquitiesUSA500 -68 (1.63%) at 4108, US500FUTS at 4131 now. Worries about a more aggressive FED during the Autumn weighed on stocks.
  • Yields 10-year yield higher (2.957% at close), trades at 2.950% now.
  • Oil & Gold had mixed sessions – USOil rallied to $120.86 following Saudi news before slipping under $120, Gold sank from over $1874 on Friday to $1852 now.
  • Bitcoin rallied from under $30K on Friday to trade at $31.2K now.
  • FX marketsEURUSD under 1.0725 again, USDJPY tested 131.00 brand holds 130.50, Cable trades over 1.2500, a no confidence vote in PM Johnson will take place later today by his own elected MPs.

Overnight CNY Caixin Services PMI missed significantly 41.4 vs. 46.1.

Today – a light calendar with Holiday Closures in many parts of Europe and no econ. news scheduled for NA session. All eyes on RBA, ECB & US CPI data later this week.

Biggest FX Mover @ (06:30 GMT) GBPAUD (-0.44%). Rallies from sub 1.7300 on Friday to 1.7400 today following Johnson news. MAs aligning higher, MACD histogram positive & breaks 0 line, RSI 65 & rising, H1 ATR 0.0024, Daily ATR 0.0050.

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Stuart Cowell

Head Market Analyst

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With over 25 years experience working for a host of globally recognized organizations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, charts and sentiment work together to provide trading opportunities across all asset classes and all time frames.

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