Market Update – June 12 – Eyes on FED, ECB & BOJ this week!

June 12, 2023

Asian stock markets moved cautiously higher, European and US futures are also finding buyers as markets wait for this week’s round of central bank announcements. US inflation data and of course the FOMC announcement will be key focal points. Markets are positioned for another rate hike from the Fed, although are betting more on July, rather than June. The USDIndex is at 103.6, as the 10-year Treasury yield lifted 1.7 bp to 3.76%. Oil plummeted again after Goldman Sachs cut its outlook for crude price. UBS completes Credit Suisse takeover (integration process could take up to four years, while the report includes a lot of uncertainties about employees).

FX – USDIndex down to 103.47. EUR holds at 1.0750, below 20-DMA for a 2nd day. JPY consolidating between 139.26-139.64. Cable holds at last 1-month high at 1.2580.
Stocks – JPN225 and ASX closed with gains of 0.5% and 0.3% respectively, the CSI 300 also inched higher, and the Hang Seng, while still in the red, has pared earlier losses. GER40 and UK100 futures are up 0.3% and 0.5%. Glencore has offered to buy Canadian mining company Teck Resources. Novartis agrees to buy Chinook for up to $3.5B.

Commodities – USOil – GS slashes Brent forecast in waning demand. USOIL tanked under $70.00 again, to $69.24, while UKOIL is currently at $73.66 (weak Chinese data, including deepening factory gate deflation and flagging exports).
Gold – steady at $1960.
Cryptocurrencies – BTC holds above $25.4k level. Regulatory challenges and liquidity issues keep the crypto market resilient.

Today – Australia closed (King’s Birthday Holiday). US Monthly Budget Statement will be released today.

Biggest FX Mover @ (06:30 GMT) ETHUSD (-5.07%) gapped down on Asia open from 1,833 to 1,717.39. MAs flattened, but MACD histogram & signal line remain well below 0 and RSI 21.12 & flat, H1 ATR 15.50, Daily ATR 71.14.

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Andria Pichidi

Market Analyst

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