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America’s Roundup: Dollar rises on US inflation data as traders await Fed meeting outcome, Wall Street slips,Gold dips, Oil climbs nearly 2%-June 16th,2021

Market Roundup

•US May Core PPI (YoY)  4.8%,4.8% forecast, 4.1% previous

•US May Core Retail Sales (MoM)  -0.7%,0.2% forecast, -0.8% previous

•US May PPI (MoM)  0.8%,0.6% forecast, 0.6% previous

•US May Retail Sales (MoM) -1.3%, -0.8% forecast, 0.0% previous

•US May Retail Sales Ex Gas/Autos (MoM) -0.8%,  -0.8% previous

•US May Core PPI (MoM)   0.7%,0.5% forecast, 0.7% previous

•US May PPI (YoY) 6.6%, 6.3% forecast, 6.2% previous

•US Jun NY Empire State Manufacturing Index  17.40,23.00 forecast, 24.30 previous

•US May Retail Control (MoM) -0.7%,  -0.6% forecast, -1.5% previous

•US Redbook (YoY) 16.4%,14.5% previous

•US May Manufacturing Production (MoM) 0.9%,  0.6%forecast, 0.2% previous

•US May Industrial Production (YoY) 16.37%, 17.59% previous

•US May Capacity Utilization Rate  75.2%,75.1% forecast, 74.6% previous

•US May Industrial Production (MoM)  0.8%,0.6% forecast, 0.5% previous

•US Apr Retail Inventories Ex Auto 0.6%               , 0.5% previous

•US Jun NAHB Housing Market Index  81,83 forecast, 83 previous

•US Apr Business Inventories (MoM)  -0.2%,-0.1% forecast, 0.3% previous

Looking Ahead - Economic Data (GMT)

•No data ahead

Looking Ahead - Economic events and other releases (GMT)

•No significant events

EUR/USD: The euro dipped on Tuesday  as markets awaited fresh guidance from the U.S. Federal Reserve on Wednesday. Traders around the world are looking for any hints about whether and when the Fed plans to taper its bond-buying programme as the U.S. economy bounces back from the pandemic fallout.  The dollar index, which measures the greenback against a basket of six currencies, was 0.04% higher at 90.529, after rising as high as 90.677, its highest since May 14.Immediate resistance can be seen at 1.2134 (38.2%fib), an upside break can trigger rise towards 1.2158 (30DMA).On the downside, immediate support is seen at 1.2099 (50DMA), a break below could take the pair towards 1.2050(23.6% fib).

GBP/USD: Sterling declined against dollar on Tuesday ,undermined by delayed reopenings in the UK due to the rapid spread of the Delta variant of COVID 19. Delayed UK reopening raises uncertainty, as investors reevaluate the pace of Britain's recovery. Sterling rallied at the start of the year, boosted by Britain’s early start to its COVID-19 vaccine roll-out. In May, it reached a three-year high of $1.425.The pound was down 0.36% against the dollar, at $1.4076.Immediate resistance can be seen at 1.4112 (50% fib), an upside break can trigger rise towards 1.4133 (5 DMA).On the downside, immediate support is seen at 1.4030 (38.2%fib), a break below could take the pair towards 1.4000 (Psychological level).

USD/CAD: The loonie weakened against its US counterpart and all other G10 currencies on Tuesday as copper prices fell to a seven-week lows and investors waited for guidance from the Federal Reserve on the prospects for their bond-buying program. Copper fell 3.6% as traders and funds cut bets on higher prices due to growing nervousness that top consumer China would soon move to curb further price rises. The loonie  was trading 0.4% lower at 1.2193 to the greenback, or 82.01 U.S. cents, the biggest decline among G10 currencies. Immediate resistance can be seen at 1.3413 (5 DMA), an upside break can trigger rise towards 1.3433 (38.2% retracement level).On the downside, immediate support is seen at 1.3288 (61.8% retracement level), a break below could take the pair towards 1.3267 (50 DMA).

USD/JPY: The dollar steadied against the yen on Tuesday as dollar was boosted by data showing accelerating inflation, but the gains were limited as traders waited for the results of the Fed's two-day monetary policy meeting. Data on Tuesday showed that retail sales fell more than expected in May, and spending on goods and services fell due to vaccines that enabled Americans to to shake of COVID-19 restrictions. However, robust demand is outpacing supply and fueling inflation. Several recent readings from inflation indicators, including the producer price index released on Tuesday, signal rising price pressures. Strong resistance can be seen at 110.33 (23.6% fib), an upside break can trigger rise towards 110.57 (April 6th high).On the downside, immediate support is seen at 109.75(38.2%fib), a break below could take the pair towards 109.28 (50% fib).

Equities Recap

European shares rose for an eighth straight session on Tuesday, driven by optimism over an economic recovery this year, but gains were limited as investors hunkered down ahead of the Federal Reserve’s two-day policy meeting.

UK's benchmark FTSE 100 closed down by 0.36percent, Germany's Dax ended up by 0.36 percent, France’s CAC finished the day up by 0. 35 percent.

Wall Street surged on Monday, fueled by expectations of a coronavirus relief package and by a rally in Amazon, Apple and other technology stocks ahead quarterly earnings season.

Dow Jones closed down by 0.27 percent, S&P 500 ended down by 0.20 percent, Nasdaq finished the day down by 0.71 percent.

Treasuries Recap

U.S. Treasury yields were steady on Tuesday ahead of the conclusion of the Federal Reserve's two-day meeting on Wednesday, which will be watched for any signals on when the U.S. central bank is likely to begin paring its massive bond purchase program.

Benchmark 10-year yields were little changed on the day at 1.499%. They fell to a three-month low of 1.428% on Friday and have dropped from a one-year high of 1.78% in March.

Commodities Recap

Gold fell on Wednesday due to the strengthening of the U.S. dollar, as investors eagerly awaited the outcome of the Fed meeting to find hints to cut economic measures.

Spot gold fell 0.5% to $1,855.99 per ounce by 1:55 p.m. EDT (1755 GMT), while U.S. gold futures settled down 0.5% at $1,856.40.

Oil prices rose nearly 2% to their highest in more than two years on Tuesday, buoyed by expectations demand will recover rapidly in the second half of 2021.

U.S. oil rose $1.24, or 1.8%, to settle at $72.12 a barrel. It hit a session high of $72.19 a barrel, its highest since October 2018.

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