The British monthly GDP is announced on Friday at 09:00 MT time.
Main market movements on June 9
S&P 500 keeps rallying
S&P 500 passed $3200. It’s only $200 left to reach the pre-crisis level and erase all looses. Support levels are $3135 and $3000. David Sowerby, portfolio manager at Ancora Advisors in Cleveland, shared his thoughts: “I don’t think even the most optimistic bullish bull could have anticipated this. The words that comes to mind are epic, monumental.” Indeed, the S&P 500 performance has been unbelievable. It managed to rise for a really short time. Reasons are the encouraging NFP data and the enormous amount of stimulus from the Fed. The strategists at the Bank of America raised its year-end target to 2,900 from 2,600. However, they mentioned long-term risks such as the second coronavirus wave and the US election.
Gold has just passed $1700
Gold lost its positions with a renewed USD demand on Friday after the NFP report. However, yesterday gold bulls were stronger and the XAU/USD price went above the key resistance level at $1700. Now the price is headed towards the $1750. Support levels are $1680 and $1635.
EUR/USD fell on weak German data
The US dollar has been loosening against EUR for quite a long time. However, some events changed that. Firstly, better-than-expected NFP on Friday gave a stimulus to USD. Secondly, the weak German data put some pressure on EUR. All together they pushed the pair down. If we look at the chart, we’ll see that EUR/USD is headed towards the 61.8% Fibonacci level at 1.117. If it crosses it, it may go even deeper to 1.1065. Resistance levels are 1.131 and 1.150. Follow the FOMC statement tomorrow at 9:00 MT time as it will add some fresh volatility.
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The US unemployment claims are out on Thursday at 15:30 MT time.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.