English (India)
10
Jun

ECB Decision, US CPI, Jobless Claims

calendar 10/06/2021 - 08:06 UTC

While the USDX ended the rather volatile trading day almost unchanged, there were mixed results among different pairs. NZD and CHF overall appreciated against the greenback, while the GBP weakened. Emerging markets FX pairs traded once again quite mixed. While the USD/TRY pair again came down, the USD/ZAR edged once again higher, rising over the course of the trading session on Wednesday by 1.2%.

The recovery in the crypto markets continued with the total market cap now surpassing $1.65 trillion with Bitcoin for once clearly outperforming most other major cryptos within the past 24 hours and the BTC dominance rising from below 40% on Monday morning to above 41.5%.

Equity market indices failed overall to progress higher with major US markets settling either almost unchanged or lower, while European markets like the Italy 40 or Germany 30 were overall in the red. Some downside was also observed in Asian markets like the China A50, however the Chinese and also Japanese market index Japan 225 (Yen) managed to recover during the trading session Thursday night.

On Thursday besides the monthly consumer price inflation numbers also the weekly new jobless claims statistics and the US Treasury budget level for May will be published.

EUR/USD

The EUR/USD pair spiked higher, reaching close to the 1.22-level around the time the US trading session was about to start only to come down even more rapidly, ending the day at almost unchanged levels.

A key market event on Thursday will be the monetary policy announcement by the European Central Bank (ECB). Despite the rising inflation it seems like market participants rather expect the central bank to continue on its course in terms of both rates and asset purchase program.

Also on Thursday Italian and French industrial production statistics can be expected.

EUR/USD

Gold

Gold prices settled once again lower with a further downside seen by Thursday morning as gold is on track to close for the second week in a row lower at current price levels. Silver prices on the other hand ended the day higher and seem to be overall close to unchanged since the beginning of the week. For palladium however the downside continued as prices are now down by more than two per cent since the start of the week.

US fundamental data could be also of importance to investors in precious metals like gold, with especially the monthly consumer price index (CPI) statistics being anxiously anticipated as a further increase in inflation seems likely at this stage.

Gold

WTI Oil

Oil prices ended the day lower on Wednesday after reaching a new post-pandemic high in intraday trading. A significant drop was observed around the time the Energy Information Administration (EIA) announced the weekly inventory numbers. While crude oil inventories were down by 5.2 million barrels, which was almost the same as the draw in the previous week, gasoline inventories increased significantly by 7 million barrels as did distillate inventories by 4.4 million barrels after already rising by 3.7 million barrels in the previous week.

On Thursday OPEC releases its monthly oil market report.

WTI Oil

US 500

Stock market index performance was on Wednesday skewed towards the downside with the US 30 and US 2000 index dropping quite noticeably, while only minor losses were recorded in the US 500 and US Tech 100 indices.

Bank stocks (US Banks ETF -1.43%) were overall underperforming, while gains were in biotech (US Biotech ETF +1.44%) stocks. Inovio (+16.54%) was one of the best performing stocks in the market, while BioNTech (+10.15%) also significantly outperformed.

Relatively few earnings and major fundamental data releases can be expected at the end of the week besides the CPI numbers on Thursday and the Michigan consumer sentiment on Friday. Some of the key publications next week could be the industrial production and capacity utilization numbers due on Tuesday as well as housing starts and permits numbers on Wednesday.

US 500

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