Market Update – June 23/2022

Written by Stuart Cowell

USD slips from highs (USDIndex 103.80), Stocks closed flat (NASDAQ & DJIA -0.15%) Yields tanked (-4%) after Powell said FED were “strongly committed” to the inflation fight and that recession was “certainly possible”. Asian shares mixed (Hang Seng +1.64%, Nikkei +0.8%, Kospi -0.7%) Oil slumped another -2% and Gold & BTC slide sideways. Biden announced tax reprieve on gasolinebut is under increasing political pressure, Johnson faces two more by-election defeats today & national rail strikes on-going, (6th Anniversary of Brexit vote) and Scholz fears gas line shutdown and unable to speak with Putin. USDJPY cooled from new 24-year high as JPY outperformed in Asian session.

  • USDIndex tested 103.60 yesterday before recovering to 104.00 now. 
  • Equities – USA500 closed -4.9 (3759), US500FUTS lower at 3756 now.
  • Yields 10-year yield higher, closed down -479% at 3.156% , trades at 3.18% now.   
  • Oil & Gold had mixed sessions – USOil slumped 2.2% to trade under $102 yesterday following Biden & Powell, back to $104.80 now.  Gold spiked to $1845 and trades at $1834 now on weaker Yields and USD.
  • Bitcoin continues to pivot around $20K,  trades at $20.5K now.
  • FX markets – EURUSD tested 106.00 yesterday back to 1.0560,  USDJPY cooled from 136.71 yesterday to test 135.00 earlier & back to 135.83 now. Cable trades down to 1.2230 now from rally to 1.2330 yesterday . 

Overnight – Japanese Manu PMI  – miss (52.7 vs 53.5) UK Public sector borrowing hit £14bn last month, the third-highest May since 1993, and worse than the expected £11.6bn. 

Today – EZ, UK & US Flash PMIs, US Initial Claims, Policy Announcements from Norges Bank, CBRT & Banxico, US Bank Stress Test Results, Fed’s Chair Powell Speaks at the House Finance Committee.

Biggest FX Mover @ (06:30 GMT) AUDJPY (-0.68%). JPY out performs today with safe haven bid. Rallied from 93.20 earlier to 93.70, next resistance the significant 94.00.  MAs aligning higher, MACD histogram negative & still turning lower, RSI 42.45, and rising, H1 ATR 0.278, Daily ATR 1.49.

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.