Treasury yields fell after Federal Reserve Chairman Jerome Powell stated that a 50 or 75 basis point rise will be discussed at the upcoming meeting of the FOMC. The weakening of the US dollar was aided by the decrease in yields.
The Fed’s ability to combat rising prices is being challenged by the market, with inflation now hovering at 8.6% on an annual basis.
On June 15, the EUR/GBP rebuffed an effort to set a new high, and today’s Bank of England (BoE) rate decision could reignite volatility.
EUR/JPY is now stuck in a sideways trend, and EUR/CHF is also trading in a range prior to the Swiss National Bank’s (SNB) rate announcement later on June 16. The EUR/USD has been pretty stable despite the dollar’s fragility.
The AUD, GBP, JPY, and NZD were among the top gainers following the Fed’s announcement. Today’s solid jobs report boosted the Australian Dollar even further. It follows the release of RBA Governor Philip Lowe’s hawkish remarks on June 15.
The unemployment rate in Australia in May was 3.9 %, down from 3.8 % expected and 3.9 % earlier. The total shift in employment was 60,600 rather than the expected 25,000. In May, full-time employment climbed by 69,400, while part-time employment decreased by 8,700.
APAC equities are mainly in the green, with Hong Kong’s Hang Seng Index (HSI) being the sole major exchange in the red, after Wall Street’s bullish trend.
In the Asian session, gold clung to gains in a 24-hour period, changing hands near US$ 1,830 at the time of writing. Crude oil is still under duress after the Energy Information Administration (EIA) reported a 2 million barrel rise in stockpiles rather than the expected decline.
The Swiss National Bank (SNB) will make its rate decision before the Bank of England. Statistics on housing and building permits will be available in the United States.
EUR/USD slipped back into the band after struggling to hold over a falling trend line and has gone through the following several sessions in a basically sideways trend.
A plunge down the previous low was also resisted, and if tried again, the 1.3040 – 1.3050 zone could offer support.
A group of simple moving averages (SMA) over the price or a sequence of previous highs in the 1.0757 – 1.0787 range could provide resistance.