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A positive day for the Dollar Index today, trading higher by 0.14% on the day, however, it is worth mentioning that this will be primarily driven by the dive in the Euro which constitutes 57.6% of the basket weight within the Dollar Index. For more on the Euro tumble take a look at today’s Chart of the Day, available here -> #COTD 18-June – EURUSD.
However, despite being higher on the day, traders are hesitant making large moves in the dollar ahead of the Federal Reserve Policy announcement on Wednesday this week, although the odds are on the Fed leaving its benchmark rate at 2.25% traders are obviously still hesitant.
On the technical front, we are in much the same place we were yesterday. The dollar has found some support on the bullish trend line and looks higher, however it does seem that the price is getting squeezer into a tighter channel, with the upswings not being as aggressive as they once were.
Sterling has seen a bit of a bounce from lows today, just missing that 1.25 level, with the low print today being 1.2506. The support level slightly lower down, seen on the chart with the thick red horizontal line, from last years low still stands as support, however, seeing it break that level could warrant some significant moves lower.
GBP/USD – Hourly
Forex Majors Summary
Energy markets seeing a bounce today, pushing higher on a couple of factors. The first of those being the ECB saying that it may utilise QE and pump more stimulus into the region’s economy and the other being OPEC and other allies making progress in regards to setting a date to discuss extending supply cuts. As of writing Oil is currently up $2.24 a barrel or 4.35% on the day.
A choppy day in the precious metals markets, with the safe haven assets trading higher in early trading on the back of investors seeing out some risk off assets after ECB President Draghi’s comments but paring all gains on renewed optimism surrounding the U.S.-China Trade war. Since shedding all its gains it has rallied and is currently sitting in the green by $8.21 an ounce or 0.62% on the day, Silver is also up on the day by 1.20%.
USO/USD – Daily
A very positive day for the Global Indices, with the ECB President Draghi’s comments earlier on in the day sending the European Indices sharply higher and lighting the board green. The Nikkei is the only of the major indices that we are seeing in the negative today, down 0.72% on the day.
The U.S. Indices following the European Indices higher today and opening in the green and continuing to trade higher. The S&P seeing a lot of green, with all bar 3 of sectors that make up the Index sitting in positive territory.
Global Indices Summary
After yesterday’s positive day for the cryptocurrency market, today we are seeing the opposite with all bar 1 on the Bloomberg Cryptocurrency Monitor sitting in the red. although these declines are reasonably small (for the digital currency world). Bitcoin, as of writing has still managed to hold above the $9,000 level.
By Alex Simcock
Sources: GO Markets MetaTrader 5, Datawrapper, Tradingview, CoinMarketCap, Bloomberg
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