The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
Market updates on June 11
On Tuesday, the improved market sentiment supported risky assets such as stocks, emerging-market currencies, and crude oil.
- Oil benchmarks have been trying to recover on the improved market sentiment. Talks that OPEC and its allies would continue its program of oil output cuts supported the oil market. However, the effect was limited. WTI moved up but with small gains. Up to now, the oil benchmark has been trading near 53.60. The resistance is located at 54.48. However, the downward pressure is high. If the benchmark is not able to break above 54.48. We will see a decline to 51.70. Brent rose less than WTI. The benchmark reached a high at 62.86. However, bears were stronger and Brent moved down. The support is located at 60.60.
- The Chinese yuan succeeds to appreciate against the USD. On Friday, USD/CNH reached the highest level of the year at 6.9613. However, the improved sentiment encouraged Chinese currency. Up to now, the pair has been trading near 6.9242 moving to the support at 6.9165. A close below this level will lead to the further appreciation of the CNH. The next level to touch is 6.90. In the case of risk aversion, USD/CNH will turn around and will move towards 6.9470 targeting the top near 6.9614.
- The Mexican peso keeps gaining strength against the US dollar. USD/MXN has been moving down for the 3 days in a row. If bears manage to pull the pair below 50-day simple MA at 19.08, we will see a further decline to 19.02. If the pair rebounds, we may anticipate a rise towards 19.24. The next resistance is at 19.3120.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The overall market sentiment is mixed as investors await the Federal Reserve’s statement today at the evening.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…