This is what you need to know to trade today Wednesday, June 23:
Market sentiment remains somewhat buoyant, courtesy of Fed Chairman Jerome Powell’s repeated confirmation on inflation and monetary policy, easing mounting fears of an earlier-than-expected rate hike. Most Asian indices followed Wall Street higher, although gains appear limited by rising coronavirus cases in Australia, New Zealand and Taiwan.
Besides, the uncertainty about the US infrastructure stimulus agreementhey the resurgence of the Sino-American tensions over the Taiwan Strait they keep investors slightly on edge. Futures linked to the S&P 500 Index rise to 4,250 while US Treasury yields remain subdued amid dovish comments from Powell.
The American dollar attempts a rebound after Powell-led slide, weighing on most major pairs. The AUD/USD remains depressed below 0.7550 amid US-China tensions and dovish comments from RBA Lieutenant Governor Luci Ellis. Ellis noted that the board remains committed to “maintaining highly compatible monetary conditions.” Meanwhile, USD / JPY flirts with two-month highs at 110.86.
The EUR/USD it is retreating below 1.1950 pending preliminary PMIs for manufacturing and services for the eurozone and Germany. The GBP/USD It is consolidating below multi-month highs at the 1.3900 level amid renewed optimism about Brexit, as UK and EU officials sound positive on resolving the Northern Ireland protocol issue.
The price Gold is finding its way after Tuesday’s slide, although the $ 1790 zone remains a difficult nut for bulls to break. US Markit PMIs can generate movement.
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