Market Update – June 22 – Signs of Volatility

Market News Today – Volatility back – Equities rebound, USD slips from recent highs but USDIndex holds at 92.00. US Equities recover (USA500 +58pts to 4224 (+1.40%),  Asian markets also recover.  US 10 yr yields bounce too; 1.49%.  EUR under 1.1900, from 1.1920, JPY up to 110.50 & Cable back to 1.3900. Gold holds at 1780,  USOil spiked to $73.80 (Oct 2018 high). UKOil over $75.00 and April 2019 high) on the back of the Iranian news, OPEC still not talking production increases and growing global demand. Biden making positive noises over much reduced $1 trillion Infrastructure Bill.

CB-Speak Powell at sub-committee inflation has “increased notably” labor market “continue to improve,” Williams, “US economy hasn’t improved enough, inflation will hit 3%” Bullard “strong labor market” as the country’s (GDP) is observing a growth of almost 7%. Lagarde the ECB will keep a “very close eye on wage growth” she was also more optimistic on the outlook.

Week AheadBOE Super Thursday, Powell Testifies to Congress 18:00 GMT Tuesday and a week of PMI data. US lots of Fedspeak has GDP, CPE, Housing and US Durable Goods.

European Open – Sep 10-year Bund future down 8 ticks, pretty much matching Treasury futures. DAX & FTSE 100 futures both up 0.3% & US futures also slightly higher after a strong close on Wall Street yesterday. Markets are getting over the Fed’s hawkish tilt, as officials continue to stress that inflation will be transitory, suggesting that any tapering will be very gradual and dependent on economic developments.

Today – EUR Consumer Confidence (Flash) & US Existing Home Sales, Fed’s Powell, Daly, Mester, ECB’s Lane & Schnabel.

European Central Bank

Biggest FX Mover @ (06:30 GMT) AUDUSD (-0.35%) yesterday’s rally from 0.7475 stalled at 0.7545 and has declined to 0.7520 today. Under PP and 20Hr MA. Next support 0.7500 and S1 at 0.7494. Faster MAs moved lower,  RSI 46 and neutral, MACD signal line and histogram rising but weak break of 0 line. Stochs OS since 20Ma break. H1 ATR 0.0010 Daily ATR 0.0065.


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Stuart Cowell

Head Market Analyst

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