The Asian session is a moderate weakening of the USD. Only AUD loses after the weaker than expected publication of the trade balance. EUR/USD is over 1.18, GBP/USD is flirting with 1.3450. USD/JPY is fighting to stay above 110.00. NZD/USD is growing to 0.7050. On Wall Street a clear rise (0.6-1.4%), but at night the futures on the SP500 remain stable and stand at 2772 points. Nikkei 225 grows almost 1.0%, Hang Seng 0.5% and only Shanghai Composite is slightly below the line. 10Y US debt yield returned to around 3.0%. The oil market is undergoing jerky trade. After descending to Monday at 64.20 after the DoE report on stocks and raw material production, the rate is over USD 65. An ounce of gold is valued at $ 1297, so no big change here as well.
On Thursday 7th of June, the event calendar is light with important data releases, but the global investors should keep an eye on Switzerland Unemployment Rate data, German Factory Orders data, Halifax House Price Index data from the UK and GDP revised data from the whole Eurozone. During the US session, the most important data are: Unemployment Claims and Continuing Claims from the US and Financial System Review data from Canada. There are some speeches scheduled as well from BOE Deputy Governor for Markets & Banking Sir David Ramsden, BOC Governor Stephen Poloz and BOC Senior Deputy Governor Carolyn Wilkins. The volatility on the markets might increase during this events.
Crude Oil analysis for 07/06/2018:
After the reading of Crude Oil Inventories data (an increase in crude oil inventories by 2.07M bbl, accompanied by a 4.6Mbbl increase in gasoline and 2.1m barrels in distillates), the exchange rate of Crude Oil fell by nearly 100 pips towards 64.50. Let me just add that production is record-breaking, reaching 10.8 million barrels a day and from week to week is growing continuously since the first half of February. The report is bearish in every detail and the drops in the price of Crude Oil should extend lower. So far the local low has been found at the level of $64.16, but if the bulls will not manage to break out above the yesterday's high at the level of $65.96 and head towards the next technical resistance at the level of $66.59, then the bears will likely take this opportunity to push the prices towards the support at the level of $63.72 or even below. The only positive clue for bulls is a growing bullish divergence between the price and RSI indicator that might help bullish case.
