Geopolitical News Influence Markets
Russian-Ukrainian conflict is influencing every economic aspect…
Facebook news and optimistic US sales
Latest news
- Facebook blocked users in Australia from finding or sharing news. That was a move in response to the Australian laws which forced Facebook to pay for news content. Even charities and health departments are blocked, but the social network claimed that it would unblock non-media accounts soon.
- Bitcoin held above the all-time high of $52 000 the whole Wednesday, but today it slightly dropped.
- US retail sales came out much better than was expected. As a result, the US dollar surged. Treasury yields keep rising as investors are still betting on the US economic rebound due to the vaccine rollout. The rise in the yields pressed the gold down to November’s lows.
- US stocks modestly dipped but we can’t claim that the risk-off sentiment came back as commodity prices such as crude oil are still climbing up. In fact, crude oil keeps rising in the US as the deep freeze stopped the oil production and increased the demand for power energy.
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Technical analysis
EUR/USD has been moving in an ascending channel since mid-summer. Since it has approached the lower trendline at 1.2030, we can expect the pair to bounce off rather than break out. If it manages to break above the resistance of 1.2100, the way up to the 50-day moving average of 1.2150 will be open.
GBP/USD has broken the psychological mark of 1.3900 and the heading to the high of February 16 at 1.3950. Support levels are at the 50-period MA of 1.3840 and the low of February 12 at 1.3780.
USD/JPY has been moving up but the 50-weekly moving average has stopped its rally. If it manages to break above the key psychological mark of 106.00 again, the way up to the next round number of 106.50 will be open. Support levels are at the 200-day MA of 105.60 and 105.00.
EUR/GBP has been trading in a descending channel since December. It has just broken the supprt of 0.8680. Now it's edging lower to 0.8650, whcih it's unlikely to cross on the first try. Resistance levels are 0.8700 and 0.8725.
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Latest news
US PCE May Soar Soon
The United States Bureau of Economic Analysis will release monthly Personal Consumption Expenditures (PCE) on June 30, 15:30 GMT+3.
Bank of England Tries to Save the Pound
The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).
How Will US PMIs Affect the USD?
The US Markit will publish Flash Manufacturing and Flash Services PMIs (purchasing managers' indices) on June 23 at 16:45 GMT+3.
