Market Review - 13/06/2019  23:35GMT  

Dollar ends mixed in lackluster Thursday's trading

The greenback ended mixed in directionless Thursday's session as investors remained cautious ahead of next week's Federal Reserve meeting, market is pondering whether Chairman J. Powell will hint the possibility of interest rate cut later this year as well as continued U.S.-China trade concern together with tensions in the Middle East after U.S. blamed Iran for tanker attacks in Gulf of Oman.  
On the data front, Reuters reported the number of Americans filing applications for unemployment benefits unexpectedly rose last week, which could add to concerns that the labor market was losing steam after job growth slowed sharply in May.   
Initial claims for state unemployment benefits rose 3,000 to a seasonally adjusted 222,000 for the week ended June 8, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported.   
Economists polled by Reuters had forecast claims decreasing to 216,000 in the latest week. The Labor Department said no states were estimated. While layoffs remain relatively low, the third straight weekly increase in claims suggests some softening in labor market conditions.   
Versus the Japanese yen, although dollar initially fell from 108.54 at Asian open to session lows at 108.17, price ratcheted higher to 108.53 in New York morning before retreating due to safe-haven yen buying on renewed M. East tension.  
Although the single currency recovered to 1.1303 at European open, renewed selling emerged and knocked price down to session lows at 1.1269 due to renewed Italy's debt concern together with usd's strength in New York morning, price later moved narrowly in subdued New York afternoon.  
Reuters reported the European Commission is ready to recommend opening EU disciplinary steps against Italy over the country's rising debt if Rome does not make any new commitments to reach fiscal goals it promised last December, European Economics Commissioner said.   
Pierre Moscovici said the Commission needed new data and a clear path that would show Italy was complying with fiscal rules in 2019 and 2020.   
The British pound went through a roller-coaster ride. Although cable fell from 1.2700 in Asian morning to session lows at 1.2662 in European morning, however, renewed buying emerged and pushed price to 1.2708 at New York open after U.K. PM candidate Boris Johnson won the most votes in first round of the contest before retreating in tandem with euro in New York afternoon.  
Reuters reported Boris Johnson, who has pledged to deliver Brexit on Oct. 31, edged closer to power on Thursday when he won by far the most support from Conservative Party lawmakers in the first round of the contest to replace Prime Minister Theresa May.   
Johnson got 114 votes, with Foreign Secretary Jeremy Hunt in second place on 43 votes and environment minister Michael Gove third with 37 votes.   
Three candidates -- Andrea Leadsom, Esther McVey and Mark Harper -- were eliminated after they failed to receive the required minimum of 17 votes.   
In other news, Reuters reported China's commerce ministry said on Thursday Beijing will not yield to any "maximum pressure" from Washington, and any attempt by the United States to force China into accepting a trade deal will fail.   
China will not make concessions on matters of principle, ministry spokesman Gao Feng told reporters at a regular briefing.   
Trade talks between the world's two largest economies fell apart in May. U.S. officials said China had watered down commitments it made on issues such as stopping intellectual property theft.   
Asked about U.S. President Donald Trump's accusation that China reneged on its promises, Gao said: "Nothing is agreed until everything is agreed."   
Data to be released on Friday :  
New Zealand manufacturing PMI, China industrial output, retail sales, Japan industrial output, capacity utilization, Germany wholesale price index, France CPI, Italy industrial orders, industrial sales, CPI, and U.S. retail sales, industrial production, capacity utilization, manufacturing output, business inventories, University of Michigan sentiment.  

Trendsetter does not warrant or guarantee the accuracy, timeliness or completeness to its service or information contained therein. Trendsetter does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading on their own risk and Trendsetter shall not be responsible under any circumstances for the consequences of such activities. Trendsetter and its affiliates, in no event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: positive mood could prevent the collapse

The shared currency has remained under selling pressure on Friday, amid mounting speculation the ECB will announce a larger-than-anticipated stimulus package next September. EUR/USD capped by a Fibonacci resistance at 1.1110, yearly low at risk.


GBP/USD: economic disruption on a no-deal Brexit to weigh on Sterling

The GBP/USD pair has closed the week with gains, a handful of pips below the 1.2150 level. The Pound advanced for a third consecutive day, helped by some headlines indicating that Jeremy Corbyn, has been in talks with the Scottish National Party.


USD/JPY: short-term advance to be capped by long-term jitters

The USD/JPY has recovered some ground these last few days, to close the week at 106.35. Still, it posted a lower low and a lower high when compared to the previous week, as the Yen benefited from its safe-haven condition on mounting concerns about a US recession. 


Four Signs of A Bear Market

I am a believer that the Universe gives you signs. That may sound a bit crazy, but these three charts are three more signs of a bear market. The top chart is the GLD exchange traded fund.

Read more

Gold gives back territory towards a 23.6% retracement

Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. 

Gold News