Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
Main market news on June 5
EUR surged after ECB statement
Yesterday the European Central Bank decided to expand asset purchases by 600 billion euros to 1.35 trillion euros and extended them until the end of June 2021. That was much more than analysts anticipated. EUR/USD skyrocketed after that statement. Now the price is headed to the March high at 1.1450. Support levels are at 78.6% and 61.8% Fibonacci levels at 1.1310 and 1.1165, respectively.
Some investors are cautious as euro rally may run out of steam in the long term. While others remain solid in their bullish calls for the euro. However, if the US dollar’s bearish trend continues, it will push EUR to new highs.
Stocks keep ralling
Let’s move on to stocks. Stocks were gaining for a long time on optimistic outlook for economies reopening. However, S&P 500 rally took a breath yesterday, but today it has continued its way upward. Most analysts say that now stocks won’t run up at the same speed, they will plateau until the next catalyst pushes them up again. Non-farm payrolls will be released today at 15:30 MT time and can add some fresh volatility. Let’s look at the chart. The price crossed the March highest point at 3110. Now it’s headed towards the next resistance level at 3250. Support levels are 3000 and 2935.
Oil is flat ahead of OPEC+ meeting
Crude oil makes little steps upward. Let’s look at the Brent oil. It has crossed the 100-day moving average. Now it’s climbing higher to the $45 resistance level. Support levels are 36 and 34. The OPEC+ meeting in June will give us more hints where the price will go. Now most analysts expect that OPEC+ members will expand the supply cuts further, but there are still some doubts about that decision.
To trade Brent with FBS you need to choose BRN-20N.
Gold froze before NFP
Gold found support near the 1700 mark that has become a key barrier and closed higher yesterday. Now it’s headed towards the retracement level at 1730. The next one will be at 1750. However, a firm break below support at 1700 may open doors towards the next support at 1680. And, don’t miss out the NFP report today at 15:30 MT time as it will cause gold fluctuations.
Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!