market review 11 June 21

11 June 21

Dollar Edges Lower After CPI Data; Fed Seen on Course

The dollar edged lower in early European trade Friday, as traders wagered that a hefty rise in U.S. consumer prices would not be enough to immediately jolt the Federal Reserve from its ultra easy monetary policy stance.
At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was down 0.1% at 89.990, marginally lower for the week.
USD/JPY rose 0.1% to 109.40, GBP/USD climbed 0.1% to 1.4179, while the risk-sensitive AUD/USD was marginally higher at 0.7753.
Data released on Thursday saw the U.S. consumer price index jumping 5.0% year-on-year in May, the sharpest rise in more than a dozen years, up 0.6% on the month, while core CPI, which excludes volatile food and energy prices, increased 3.8% year-on-year and 0.7% month-on-month in May.

https://www.investing.com/news/forex-news/dollar-edges-lower-after-cpi-data-fed-seen-on-course-2529578

https://www.investing.com/currencies/aud-usd-chart

S&P 500 closes at all-time high as long-term inflation jitters fade

Wall Street stocks ended higher on Thursday, with the S&P 500 closing above its prior record high set on May 7, as economic data appeared to support the Federal Reserve’s assertion that the current wave of heightened inflation will be temporary.
All three major U.S. stock indexes advanced, with market-leading megacap stocks putting the Nasdaq out front. But economically sensitive transports and smallcaps ended the session in negative territory.
The Labor Department’s consumer price index (CPI) data came in above consensus and added fodder to the debate over whether current price spikes could transform into long-term inflation, despite the Fed’s assurances to the contrary.
But a closer look showed that much of the price surge came from items such as commodities and airfares, and is therefore likely to be temporary.

https://www.investing.com/news/economy/futures-hold-steady-ahead-of-inflation-data-2528587

https://www.investing.com/indices/us-spx-500-chart

Oil Down, but Set to Record Third Weekly Gains

Oil was down Friday morning in Asia but was set to end the week with a third weekly gain. The black liquid hovered near the $70 mark as investors continue to digest diverging fuel demand outlooks.
Brent oil futures were down 0.43% to $72.21 by 12:06 AM ET (4:06 AM GMT) and WTI futures were down 0.43% to $69.99. Futures in New York steadied on Friday after closing at the highest since October 2018 during the previous session.
With traffic in the U.S. and most of Europe almost back to pre-COVID-19 levels, the Organization of the Petroleum Exporting Countries (OPEC) forecasts that fuel demand recovery will pick up in the second half of 2021.
“Overall, the recovery in global economic growth, and hence oil demand, are expected to gain momentum in the second half,” the cartel said in its monthly report released on Thursday. The report also predicted oil demand could jump by about 5 million barrels a day, or around 5%, in the second half of 2021 compared with the first half.
However, investors also continued to digest Wednesday’s data from the U.S. Energy Information Administration that showed a bigger-than-expected draw of 5.241 million barrels in U.S. crude oil supply for the week ending June 4.

https://www.investing.com/news/commodities-news/oil-down-but-set-to-record-third-weekly-gains-2529546

https://www.investing.com/commodities/crude-oil-streaming-chart

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services