This is what you need to know to trade today Monday, June 21:
A wave of risk aversion has gripped the markets in this new week as the Fed’s hawk turn causes reflation bets to be re-marked while weighing heavily on Treasury and equity yields.
The US yields in the market reached the lowest levels in four months, with 30-year bonds below the 2% level. The U.S. Treasury yield curve flattened after the Fed projected two hikes in interest rates by the end of 2023.
Asian stocks have closed in a sea of ​​red as Japan’s benchmark Nikkei 225 Index lost nearly 4%. Futures linked to the S&P 500 Index are down 0.50% to 4,100.
The yen emerges stronger amid falling yields and risky mood, hammering USD / JPY below 110.00. AUD / USD hovers around 0.7500, shrugging off preliminary Australian retail sales.
The EUR/USD eases towards 1.1850, as the US dollar clings to last week’s gains amid suggestions for earlier-than-expected Fed rate hikes, especially after St. Louis Fed Chairman James Bullard , said it sees a takeoff from the Fed in late 2022.
The GBP/USD It falls back below 1.3800 amid Brexit concerns and the delay in the UK reopening, in light of mounting concerns about the Delta variant of COVID-19.
Gold it is attempting a rebound from two-month lows amid falling yields, although the broadly firmer US dollar is likely to limit the rebound.
Bitcoin has recaptured the $ 34,000 but remains in the hands of sellers as it has suffered a massive drop in China’s ongoing crackdown on BTC mining.
The economic calendar it is relatively rare, with the focus on comments from Fed members.
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