Market Update – June 9 – USD & Yields slip, Treasuries & Stocks Rally

By
Analysis Team
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The USDIndex dived from the 104.00 holding pattern to 103.33 as weekly unemployment claims rose much more than expected by 28k  to a 2-year high of 261k from 233k reversing the tightening in claims since April. Stocks closed with a positive bias as the S&P500 joined the NASDAQ in technical BULL market and the Eurozone enters a technical recession. Asian markets have followed through too, closing in positive territory, with European & UK Futures firmer too. FED now appear set for no hike next week, (like the BOJ) but very unlike the ECB. Ueda will “patiently maintain current monetary easing”. Binance in the US to stop USD deposits, Goldman Sachs “a US recession has become less likely.”
  • FX – The USDIndex down to 103.33 the lowest since May 24. EUR holds above 1.0750, today at 1.0780.  JPY briefly tested 138.70 lows from June 2. back to 139.40 now.   Cable holds over the mighty 1.2500 at 1.2560.  
  • Stocks – Wall Street traded positively with tech bouncing back the NASDAQ gained over 1.00%, the DOW edged out a 0.50% gain. US500   (0.60%) closed 26.33pts at 4293, FUTS popped 4300, but are trading at 4290.  

  • Commodities – USOil – Futures tanked under $70.00 again, to $69.00 before bouncing back to $71.00.  Gold – rallied to $1970 from below the key $1950 handle, and trades at $1965 now.
  • Cryptocurrencies – BTC reversed from the $27k level to 26.5k again in the wake of the Binance and Coinbase rejections of the SEC accusations.

Today – Canadian Jobs Data & Speech from ECB’s de Guindos.

Biggest FX Mover @ (06:30 GMT) USDJPY (+0.57%) Rallied from 138.75 lows today to  break 139.50, next resistance at 139.60.  MA’s aligning higher, MACD histogram & signal line negative but rising, RSI 61.20 & rising, H1 ATR 0.121, Daily ATR 1.177.

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Stuart Cowell

Head Market Analyst

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