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Japan PM Suga confirms Tokyo state of emergency to end on 20 June

June 17, 2021 16:17   Forexlive Latest News   Market News  

Japanese prime minister, Yoshihide Suga, announces

The state of emergency will also be ended for other prefectures as well so we’ll see how that will impact the virus situation going into the Olympics next month.
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ICYMI – US Treasury Sec Yellen says US may decouple from China to some extent

June 17, 2021 16:12   Forexlive Latest News   Market News  

U.S. Treasury Secretary Janet Yellen spoke around about the time of the FOMC, so her comments may have slipped under the radar. 

Updating here now ICYMI. Yellen was speaking to the US Congress’  Senate Finance Committee

  • said she expects the United States to decouple in some areas from China
  • to protect US national security

But …

  • “I would worry somewhat about complete technological decoupling

Added that many US allies would be reluctant to sharply reduce their business activities in China.

Info via Reuters.  

U.S. Treasury Secretary Janet Yellen

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No follow through in Treasury yields surge so far today

June 17, 2021 16:09   Forexlive Latest News   Market News  

10-year yields are down 2 bps to 1.555% currently

USGG10YR

The dollar may still be working with the technicals and gaining some modest ground in European morning trade but not a lot of that ‘hawkishness’ per se is being reflected in the bond market at the moment.

10-year yields are retracing slightly after yesterday’s surge, falling short of testing 1.60%.

In fact, yields are keeping lower on the day though we may have to wait on US traders to come in to be sure of things.

The Fed certainly did deliver a bit of a hawkish surprise yesterday – in terms of projections – but as long as they keep rate guidance the way it is, there is still reason for yields to be handicapped; as they have been since late March.

Keep an eye on things here as this could also prove to be a headwind for the dollar.

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Italy Global Trade Balance increased to €5.87B in April from previous €5.19B

June 17, 2021 16:02   FXStreet   Market News  

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

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Italy Trade Balance EU climbed from previous €0.384B to €1.012B in April

June 17, 2021 16:02   FXStreet   Market News  

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.




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USD/CHF sticks to gains near 0.9125-30 region, highest since May 6 post-SNB

June 17, 2021 15:56   FXStreet   Market News  

  • USD/CHF gained strong follow-through traction for the second consecutive session on Thursday.
  • The Fed’s hawkish tilt continued underpinning the USD and remained supportive of the move up.
  • A weaker risk sentiment, the latest SNB policy decision did little to hinder the ongoing momentum.

The USD/CHF pair continued scaling higher through the early European session and shot to the 0.9125-30 region, or the highest level since May 6 in the last hour.

The pair built on the previous day’s momentum beyond the very important 200-day SMA and gained strong follow-through traction for the second consecutive session on Thursday. The Fed’s sudden hawkish tilt on Wednesday pushed the US dollar to near two-month tops, which, in turn, was seen as a key factor that provided a goodish lift to the USD/CHF pair.

It is worth recalling that the Fed signalled that it might raise interest rates at a much faster pace than anticipated earlier. The so-called dot plot indicated two rate hikes by the end of 2023 as against March’s projection for no increase until 2024. Adding to this, seven members pencilled in a rate hike or more in 2022 as compared to four in March.

The USD bulls seemed rather unaffected by a modest decline in the US Treasury bond yields. Even a sharp pullback in the equity markets, which tends to underpin demand for the safe-haven Swiss franc, also failed to hinder the ongoing positive move. The USD/CHF pair maintained its bid tone and moved little after the SNB announced its policy decision.

As was widely expected, the SNB left the sight deposit interest rate unchanged at -0.75%. The Swiss National Bank reiterated that the CHF remains highly valued and showed readiness to intervene in the FX market it needed. The SNB also upgraded its inflation forecast through 2023, though did little to provide any meaningful impetus to the USD/CHF pair.

Market participants now look forward to the US economic docket – featuring the release of the Philly Fed Manufacturing Index and the usual Initial Weekly Jobless Claims. This, along with the US bond yields, might influence the USD. Apart from this, the broader market risk sentiment could produce some short-term trading opportunities around the USD/CHF pair.

Technical levels to watch

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US Dollar Index pushes higher to the 91.60 zone ahead of data

June 17, 2021 15:56   FXStreet   Market News  

  • DXY extends the sharp rebound further north of 91.00.
  • The dollar regains traction following the FOMC event.
  • Initial Claims, Philly Fed Index, Yellen next on tap.

The dollar keeps pushing higher and extends the recent breakout of the 91.00 yardstick when tracked by the US Dollar Index (DXY).

US Dollar Index bid post-Fed

The index is up for the third session in a row on Thursday and advances past the key 200-day SMA (91.51), all following Wednesday’s FOMC event.

In fact, the Fed brough forward any chances of starting the tapering talk at its meeting on Wednesday, while the “dots plot” now projects two interest rate hikes by end of 2023. Regarding inflation, the Fed sticks to the view that consumer prices will return to the target at some point in 2022.

In the wake of the Fed’s meeting, yields of the key US 10-year reference leapt to the vicinity of 1.60% from sub-1.50% levels, while the 5-year breakeven eased to 2.41%.

Later in the US docket, Treasury Secretary J.Yellen will testify before the House Ways and Means Committee on FY2022 budget. In the data space, weekly Claims are due seconded by the Philly Fed manufacturing gauge.

What to look for around USD

The index jumped beyond the 91.00 mark in the wake of the unexpected upbeat tone from the FOMC event on Wednesday. The likeliness that the tapering talk could kick in before anyone has anticipated and the views of higher rates by end of 2023 fuel the change of heart in the buck and the upside in DXY to levels last seen in mid-April. However, the still unchanged view on “transient” higher inflation and hence the continuation of the dovish stance by the Federal Reserve carries the potential to temper the current momentum in the dollar. A sustained break above the critical 200-day SMA should shift the dollar’s outlook to a more constructive one.

Key events in the US this week: Initial Claims, Philly Fed Index (Thursday).

Eminent issues on the back boiler: Biden’s plans to support infrastructure and families, worth nearly $6 trillion. US-China trade conflict under the Biden’s administration. Tapering speculation vs. economic recovery. US real interest rates vs. Europe. Could US fiscal stimulus lead to overheating?

US Dollar Index relevant levels

Now, the index is gaining 0.26% at 91.63 and a breakout of 92.00 (round level) would open the door to 92.46 (23.6% Fibo level of the 2020-2021 drop) and finally 93.43 (2021 high Mar.21). On the flip side, the next contention aligns at 89.53 (monthly low May 25) followed by 89.20 (2021 low Jan.6) and then 88.94 (monthly low March 2018).

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SNB steers rate on a steady course at -0.75%, USD/CHF refreshes monthly tops

June 17, 2021 15:33   FXStreet   Market News  

  • The SNB kept the monetary policy steady in June.
  • USD/CHF renews monthly highs at 0.9129 on the SNB outcome.

more to come ..

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.




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USD/IDR Price News: Rupiah stays close to monthly lows of 14,380 after Bank Indonesia’s status-quo

June 17, 2021 15:29   FXStreet   Market News  

Indonesia’s central bank, Bank Indonesia (BI), made no changes to its benchmark 7-day reverse repo, leaving it at 3.50% during its June monetary policy meeting held this Thursday.

The central bank governor Perry Warijyo said that a rise in covid cases remains a risk to the GDP growth.

Additional comments

Fed statement reduces uncertainty.

Household consumption, manufacturing activity, exports improve in Q2.

Maintains 2021 GDP outlook at +4.1% to +5.1%.

Keeps 2021 current account deficit estimate at 1% to 2% of GDP.

To continue strengthen rupiah stabilisation measure.

2021 inflation YoY seen within 2%-4% target range.

2021 net liquidity injection amounting to 94.03 trillion rupiah.

2021 bond purchase in primary market amounting to 116.26 trillion rupiah.

more to come ….

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USD/CAD consolidates below 1.2300 mark, bullish potential intact

June 17, 2021 15:21   FXStreet   Market News  

  • USD/CAD was seen consolidating the overnight strong gains to the highest level since May 5.
  • Hawkish Fed continued underpinning the USD, albeit retreating US bond yields capped gains.
  • A further pullback in oil prices weighed on the loonie and acted as a tailwind for the major.

The USD/CAD pair held steady near the 1.2280-85 region during the early European session and consolidated the post-FOMC gains to the highest level since May 5.

The pair, so far, has struggled to capitalize on the previous day’s strong move up and witnessed a subdued/range-bound price action through the first half of the trading action on Thursday. That said, a combination of factors supports prospects for an extension of the recent bounce from the vicinity of the key 1.2000 psychological mark, or multi-year lows touched earlier this month.

The US dollar remained well supported by the Fed’s sudden hawkish turn, signalling that it might raise interest rates at a much faster pace than anticipated previously. The so-called dot plot indicated two rate hikes by the end of 2023 as against March’s projection for no increase until 2024. Adding to this, seven members pencilled in a rate hike or more in 2022 as compared to four in March.

Meanwhile, the Fed’s super hawkish pivot dampened investors’ appetite for perceived riskier assets. This was evident from a sharp pullback in the equity markets, which further benefitted the greenback’s relative safe-haven status. However, a softer tone around the US Treasury bond yields held the USD bulls from placing aggressive bets and kept a lid on any further gains for the USD/CAD pair.

On the other hand, some follow-through pullback in crude oil prices undermined the commodity-linked loonie. This might turn out to be another factor that might continue to act as a tailwind for the USD/CAD pair. This, in turn, suggests that the path of least resistance is up and any meaningful corrective slide might still be seen as a buying opportunity, rather remain limited.

Market participants now look forward to the US economic docket – featuring the release of the Philly Fed Manufacturing Index and the usual Initial Weekly Jobless Claims. This, along with the US bond yields, might influence the USD later during the early North American session. Apart from this, oil price dynamics will further assist traders to grab some short-term opportunities around the USD/CAD pair.

Technical levels to watch

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EUR/GBP remains presurized below 0.8570 ahead of EU inflation data

June 17, 2021 15:09   FXStreet   Market News  

  • EUR/GBP edges lower on Thursday.
  • EUR loosen its grip post subdued economic data, inflation data eyed.
  • GBP gains under check on delayed economic reopening.

EUR/GBP extends the previous day’s decline in the European session. The pair refreshes the daily lows near the 0.8560 level. 

At the time of writing, the EUR/GBP pair trades at 0.8569, down 0.04% for the day.

The Euro is under selling pressure on mixed economic data released on Wednesday. The Hourly Labor costs rose 1.5% in Q1. The Trade Surplus widened to € 10.9 billion in April, from € 2.3 billion, amid a sharp recovery in the global demand. The Eurozone Industrial Production jumped 0.8% in April, much above the market expectations at 0.4%.

Meanwhile, ECB Chief Christine Lagarde said that the monetary and fiscal stimulus will be continued until  clear signs of a solid and sustainable economic recovery are visible. The comments challenge the sentiment around the shared currency.

On the other hand, the British pound shows resilience after experts believed that the UK economy continues to grow, despite the delay in the re-opening of the economy.

Traders are bracing for the Eurozone Core Inflation Rate and Construction Output to gauge the market sentiment.

EUR/GBP additional levels

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