Market Update – June 10/2022

Written by Stuart Cowell

USD moved higher (USDIndex 103.10), Stocks TANKED into close (NASDAQ -2.75%, Dow -600 pts & S&P close to -100 pts) Futures steady. ECB  cut growth and raised inflation forecasts, confirmed end of PEPP and 25bp rate hike in July (some wanted 50bp) & 25bp in Sept. (the caution weighed on EUR). Yields rallied (US 5yr & 10yr back over 3.00%, 2yr at 2.84%), Asian markets have mostly slipped, (Nikkei -1.49%). Yellen inflation a serious problem “what I am focused on”. Goldmans & Deutsche now expect 2 x 50bp hikes from ECB in Sept & Oct and RTS poll sees the same from FED (bring it to 4 x 50bp hikes). Oil slips but holds on to gains, Gold remains pressured by rising yields. NZD bid overnight.

  • USDIndex rallied to 103.33 apost ECB and ahead of US CPI today.
  • Equities – USA500 -98 (-2.38%) at 4017, US500FUTS at 4025 now. $AMZN –4% $BABA +-8.13%, $NFLX -4.96%, $AAPL -3.60% $GOOGL -2%, $MRNA -9.76%
  • Yields 10-year yield higher (3.064% at close), trades at  3.055% now.   
  • Oil & Gold had weaker sessions – USOil slipped but holds over $120.00 handle, Gold sank as Yields rallied from over $1855 to $1845 now.   
  • Bitcoin continues to pivot around $30K.
  • FX markets – EURUSD down at  1.0630, from a spike to 1.0770, USDJPY tested 134.50 zone (24-yr high) and holds 134.00, Cable trades down at 1.2500, from 1.2550. 

Overnight –  PPI in Japan missed (9.1% vs 9.9%) but remains high, China CPI missed (2.1% vs 2.2%) & PPI in line 6.4% & down from 8% last month (Shanghai lockdowns)

Today – US CPI, Canadian Jobs ReportUS University of Michigan (Prelim.) & Speech from ECB’s Lagarde.

Biggest FX Mover @ (06:30 GMT) NZDUSD (+0.54%). Moves higher from 0.6380 to  0.6420, as NZD gets a bid in the Asian session. Next key resistance 0.6450. MAs aligning higher, MACD histogram negative but turning higher, RSI 54 & rising,   H1 ATR 0.0011, Daily ATR 0.0068.

About the author

Stuart Cowell

With over 25 years experience working for a host of globally recognized organisations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, charts and sentiment work together to provide trading opportunities across all asset classes and all time frames.