This is what you need to know to trade today Tuesday, June 22:
The optimistic mood of the US markets in the last session extends through Tuesday, as Asian stocks rebound from monthly lows amid easing fears of tightening by the Federal Reserve. Fed policy makers James Bullard and Robert Kaplan tempered the hawkish rhetoric of the FOMC, as they considered that the economic recovery still has room for improvement.
Meanwhile, the Fed Chairman Jerome Powell, in prepared remarks from his testimony before the House Select Subcommittee on the coronavirus crisis, said that inflation had accelerated but should roll back towards the central bank’s 2% target once the supply imbalances.
The US dollar extends rebound after witnessing a strong corrective pullback on Monday. Meanwhile, Treasury yields continue to rise as investors rethink the Fed’s monetary policy stance. Renewed expectations of a possible stimulus deal on US infrastructure also add to market optimism.
In the forex field, the AUD/USD it remains the main laggard, as it points down towards 0.7500. The USD/JPY maintains the bullish tone near 110.00 while the USD / CAD it remains capped below 1.2400 amid rising oil prices. Brent oil hit $ 75 for the first time in two years.
EUR/USD defends 1.1900 ahead of ECB and eurozone consumer confidence data. GBP/USD It is battling 1.3900 after Monday’s impressive recovery stalled amid looming Brexit concerns and tension over the Delta variant of Covid. Meanwhile, Britain began negotiations to join the trans-Pacific trade agreement.
Gold It is consolidating its recovery below $ 1,890 as the higher US dollar and yields limit the upside. The focus now remains on Powell’s question and answer session during his testimony on Tuesday afternoon.
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