US Evades Default This Time
Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!
Moderna Joins S&P, NZD Surged on Inflation Data
What you need to know on Friday
- Moderna rocketed after an announcement that the vaccine maker is going to join the S&P 500 index. Netflix will add video games to its services, which can be positive for the stock price.
- Fed’s Powell defended the central bank’s dovish stance even despite the high inflation again.
- This week is going to be the worst for crude oil since mid-March. A decline in oil prices was caused by fresh virus outbreaks and uncertainty over an OPEC+ deal to increase output.
- The New Zealand dollar surged after the nation’s inflation surpassed the central bank’s target level, moving New Zealand closer to an interest-rate increase. NZD/USD rocketed!
Tech tips
EUR/USD has failed to cross the 1.1800 support level so far. If it breaks it, the way down to the low of June 14 at 1.1770 will be clear. The 50-period moving average near 1.1825 remains the strong resistance level. The next resistance is at yesterday’s high of 1.1850.
Gold has failed to cross the key resistance level of $1833, which lies at the 50% Fibonacci retracement level. The way to the 38.2% Fibo level of $1815 is clear now. If it breaks it, the way down to the 23.6% Fibo level of $1790 will be open. In the opposite scenario, if gold crosses the $1833 barrier, the metal can rally up to the next round number of $1850.
Finally, let’s see what’s happening with the British pound. The symmetrical triangle has occurred on the GBP/USD chart. It means that we should wait for a breakout of the lower or upper line. If the price goes below the lower line and surpasses the 1.3800 support level, it will fall to 1.3750. However, 1.3800 is a strong barrier and the pair is likely to bounce off rather than breaking out. Resistance levels are 1.3865 and 1.3900.
Similar
USD Gains Momentum
The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!
NVIDIA to Become the Next Tesla
The United States has one week before default, and NVIDIA may become the next Tesla. What else drives the market?
Latest news
Nonfarm Payrolls is in Focus Today
The situation on the labor market still looks optimistic. Today we expect the Unemployment rate data. 3.5% is expected.
No More US Debts in Sight
The first day of June should’ve brought us the US default. Unsurprisingly, the US House passes the debt ceiling bill at the latest possible moment.
Gold Rises as Central Banks Buy More
About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.
