Market news

Daily finance news update

OPEN LIVE ACCOUNT

BoC to liven things up?

June 09,2021 06:13:37

Overnight Headlines

*USD stuck in range, trading around 90

*US equities were flat, small caps continue to outperform

*Oil through $72, bitcoin bounces from $31,000

US equities were quiet with growth stocks performing marginally better and the energy sector benefitting from higher oil prices.  Meme stocks were again a focus with so little movement elsewhere, Asian markets and European futures are mixed this morning.

USD traded in another narrow range as markets looks to the US inflation data and the ECB meeting tomorrow. EUR weakened modestly and trades below 1.22, with German industrial production disappointing on a construction slump. GBP is well and truly stuck in the 1.41-1.42 range as the UK government considers a two-week reopening delay.

Market Thoughts – Bank of Canada to wait until July for more action

Today’s BoC meeting is expected to be largely a non-event as the bank waits for more post-lockdown economic data before signalling another cut in the pace of its bond buying. After moving to a hawkish bias at its April meeting, the message should be repeated. This means forward guidance for a first rate hike in the second half of 2022 with a continued adjustment of QE if economic conditions improve. The data since April has been mixed with disappointing job growth but punchy inflation and retail sales numbers.

If the bank tees-up another taper round in July, then CAD will find some support amid quiet markets as this will further widen the policy divergence between the BoC and the patient Fed.

Chart of the Day – USD/CAD desperate for catalyst

The downward pressure on the dollar since March 2020 is well entrenched which tells us that the 1.20 support mark should give way at some point. USD/CAD failed to bounce significantly during the whole of May, only touching 1.22 once in the middle of last month and near-term resistance now lies in a 1.2135/45 zone. The long-term bear channel has turned into a bearish wedge pattern, with targets to the downside being the May 2015 low at 1.1919 and the 200-month SMA below 1.17. The longer we consolidate, the bigger the break will be and Thursday’s US CPI data will need to be watched for any rebound move.

Jamie DuttaAnalyst / Trader

"With extensive experience as a full time trader and financial market commentator, I have worked as a trader in top tier investment banks and trading houses, including Morgan Stanley and GAIN Capital trading Forex, Index derivatives. and Bonds. I combine technical analysis with a deep fundamental knowledge to identify trade set-ups. My real life experience allows me to break down the complexities of financial jargon and trading. This means everyone can better understand the compelling forces of greed and fear which are realised every day in countless ways across markets."

Vantage does not represent or warrant that the material provided here is accurate, current, or complete, and therefore should not be relied upon as such. The information provided here, whether from a third party or not, is not to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any financial instruments; or to participate in any specific trading strategy. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. We advise any readers of this content to seek their own advice. Without the approval of Vantage, reproduction or redistribution of this information is not permitted.

PEMBUKAAN AKUN CEPAT & MUDAH

  • Daftar

    Pilih tipe akun dan ajukan aplikasi pendaftaran Anda.

  • Danai

    Danai akun Anda dengan menggunakan beragam cara pendanaan.

  • Perdagangan

    Akses 300+ CFD instrumen pada semua kelas aset di MT4/MT5

Sangat mudah untuk membuka akun trading Forex dan CFD.
Selamat datang dalam semesta trading!
BUKA AKUN LIVE