FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
ETX Capital information and reviews
ETX Capital
90%
FxPro information and reviews
FxPro
89%
FIBO Group information and reviews
FIBO Group
88%
EUR/USD
1.212
GBP/USD
1.4104
USD/JPY
110.1204
USD/CHF
0.9
USD/CAD
1.2149
EUR/JPY
133.4661

Q2 set to end on risk-on note


30 June 2020

Asian stocks are advancing on the final trading day of June, after a positive session on Wall Street, with market sentiment buoyed further by China’s better-than-expected June PMI readings. The data makes for encouraging signs that the world’s second largest economy is well on its way in overcoming the pandemic.

The Hang Seng index is also climbing higher, keeping up with the regional trend, despite the US halting some trade benefits to Hong Kong pertaining shipments of sensitive American technology to the city. The latest move is in keeping with the threat that Hong Kong may lose its special trading status, amid escalating US-China tensions.

The HSI50 appears to be constrained by the psychologically-important 25,000 level but supported by its 50-day simple moving average. With Hong Kong stocks being squeezed into this tighter range, it suggests that a breakout is imminent. The Hang Seng index’s upside however appears capped by Hong Kong’s perceived place at the epicentre of strained US-China relations. A ratcheting up of tensions between the world’s two largest economies could severely hamper the potential gains in Hong Kong equities.

No surprise then that the Hang Seng could only manage a four percent advance since March 31, which is the lowest quarter-to-date gains among major Asian stock benchmarks. In contrast, the MSCI Asia Pacific index is posting a 15 percent climb for the period, its largest quarter-to-date climb since Q3 2009.

Dollar awaits US consumer confidence data; Powell, Mnuchin testimonies


The Dollar index (DXY) has returned to the upper bounds of its 95.7-97.7 range that it has kept to in June, though it is set to register a loss of over one percent for the quarter. The record-setting gains in May’s pending US home sales, which registered a 44.3 percent month-on-month increase and shattered market expectations, wasn’t enough to break the DXY out of its current sideways trend.

Data-dependent Dollar traders will be looking to the June US consumer confidence data announcement later today for further signs of the US economic recovery. The key question now is whether consumers, who shoulder the responsibility of driving US economic growth, will engage with the stimulus measures that have been rolled out by the government. The consumer confidence readings are expected to post a second consecutive month of recovery, yet remain in sub-100 territory for a third straight month. A positive surprise in the data could encourage more risk-taking behaviour in the markets.

The testimonies by Fed chair Jerome Powell and US Treasury Secretary Steven Mnuchin before the House Financial Services Committee could also sway market sentiment, as both are expected to be pressed on the Fed and the Treasury’s respective responses to the pandemic. Should investors get the sense that even more stimulus is on the way, especially from the fiscal side, that could give risk sentiment another shot in the arm and unwind recent gains in the US Dollar.

#source

Related

FOMC preview: will sleepy markets be given a Fed wake-up call?

Since March 2020 the Federal Reserve has been about as accommodative as they could possibly be. Chair Jay Powell is set to deliver a press conference after the FOMC meeting...

15 Jun 2021

Next significant support for XAU/USD is located at $1,840

The renewed USD strength on Friday forced gold to drop below $1,880 and post losses for the second straight week. If the downswing extends, a test of the 200-day moving...

14 Jun 2021

Forex and Cryptocurrency Forecast for June 14-18, 2021

The key day last week was Thursday, June 10. There were two important events on the day: the European Central Bank meeting and the release of US consumer market data...

14 Jun 2021

Best Long-term Stocks to Buy Now for 2021

Today, we can see that the pandemic is beginning to decline and economies around the world are starting to gradually recover. This is evidenced by the growing...

11 Jun 2021

The Euro is more likable to investors

EURUSD is slightly rising on Thursday afternoon; market expectations are against the greenback. The major currency pair is growing a little bit on Thursday...

10 Jun 2021

Oil in search of a bears' pain threshold

The stock and currency markets have been weak since the beginning of the week, with little major reason to move in any direction. Active players on stock and FX...

9 Jun 2021


Editors' Picks

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.