The DAX has posted considerable losses on Friday. Currently, the index is at 12,096, down 0.60% on the day. On the fundamentals front, there are no major German or eurozone events. In the U.S., today’s highlights are the May retail sales reports. Core retail sales are projected to climb to 0.5%, after a weak gain of 0.1% a month earlier. Retail sales are expected to rebound to 0.7%, after a reading of -0.2% in April. The week winds up with the UoM Consumer Sentiment report, which is expected to fall to 98.1, after an outstanding reading of 102.4 in the previous release.

Broadcom, the gigantic Singapore chipmaker, has dragged down European stocks on Friday. Broadcom has forecast a hit of some $2 billion to revenue, another casualty in the bitter trade war between the U.S. and China. The negative news has hurt technology stocks, and the tecDAX, which tracks the 30 largest technology companies in Germany, is down 1.1% on Friday. The DAX is also trading lower.

All eyes are on U.S. consumer spending data. Inflation numbers for May were soft, but the markets are counting on better news from consumer spending data. Retail sales and core retail sales are expected to rebound in May, and these numbers could play a crucial role in the Federal Reserve’s forward guidance for rates. The markets are prepared for a rate cut, possibly two, in the second half of the year. The CME Group has set the odds of a July cut at 62% and another cut in September at 55%. Lower interest rates make the U.S. dollar less attractive to investors, so some headwinds could be ahead for the greenback.

Gold gains as Fed rate cut expectations provide support

USD/CAD Canadian Dollar Rises on Oil Surge After Attacks

 

Economic Calendar

Friday (June 14)

  • 8:30 US Core Retail Sales. Estimate 0.5%

  • 8:30 US Retail Sales. Estimate 0.7%

  • 10:00 US Preliminary UoM Consumer Sentiment. Estimate 98.1

Germany

 

Previous Close: 12,169 Open: 12,140 Low: 12,082 High: 12,144 Close: 12,096

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD defends gains above 1.1300 amid broad dollar recovery

EUR/USD defends gains above 1.1300 amid a broad-based US dollar recovery. The shared currency remains at the mercy of the broader market sentiment as the data docket is light on Monday. COVID-19 stats in focus. 

EUR/USD News

GBP/USD batting to extend gains beyond 1.2600

Risk-on mood limits the dollar’s bullish potential. GBP/USD bounces from daily lows, but Brexit concerns weigh on Sterling. BOE Governor Bailey's speech awaited.

GBP/USD News

Gold sits near daily tops, just below $1810 level

A combination of supporting factors assisted gold to regain positive traction on Monday. Sustained USD selling remained supportive amid concerns about rising COVID-19 cases. The prevalent risk-on mood might turn out to be the only factor capping any strong gains.

Gold News

Dominance war to push Ethereum to $270

The Altcoin segment is still in full swing while the crypto board leaders, Bitcoin and Ethereum, remain stuck at the same levels as in recent weeks. The dispute for market share, or dominance in technical terms, remains at a point of maximum tension. 

Read more

WTI breaches $40 mark as talks of OPEC+ output cuts easing weigh

WTI (August futures on Nymex) extends Friday’s sell-off into the European trading this Monday, following a brief consolidation seen above $40 mark earlier in the Asian session.

Oil News

Forex Majors

Cryptocurrencies

Signatures