Investors embraced a bit of optimism on risk assets as inflation worries eased. UK Prime Minister is expected to deliver a resignation speech in the coming hours.
Today, the dollar strengthened receded ahead of Fed Waller and Bullard speaks address on a rate hike for the July meeting. Investors will also be watching closely the ECB June meeting account for the policy cycle clues.
AUDUSD rallied by +0.92% early European session ahead of the US initial jobless claims.
The Aussie got boosted by the record trade data released early Asian session. Australia’s trade balance rose to 15.965B from the 10.725B surveyed in May. The pair bounced off a 0.67800 support to 0.6850 near-term resistance.
Bulls may attempt to reclaim the 0.6900 if the near-term barrier fails to hold. Traders should pay attention to the US trade balance and Initial Jobless claims later today.
EURGBP plunged by -0.51% for the 4th session straight ahead of the ECB monetary policy minutes. The German Industrial Production figures dropped to 0.2% from a previous reading of 1.3% undermining Euro strength in the near term.
Bears managed to break below the 0.8440 level extending targets to 0.8350 in the near term, a 6-week low. BoE MPC members Pill and Mann, and German Buba President Nagel will be speaking in the New York session.
European stocks rise as markets brace optimism on risk assets. DAX rallied by 1.91% on Thursday as selling pressure eases on energy stocks. The index extended gains towards the 12800 near-term resistance and a break above that level could see bulls rally towards the 13000 psychological level.
CAC40 surged by +1.09% to 6000 near-term barrier. A break above that level could see extended gains towards the 6200 level, coinciding with the 50-day moving average on Daily Chart. A defence of the 5800 support will be key in maintaining a bullish outlook in the near term.
FTSE100 lagged behind rising +0.44% as UK political risks make bulls very cautious. The index is trading at 7200, yesterday’s low and a breach above that near-term barrier could attract buyers to target the 7330 high. The near-term support is at 7135, a daily low.
US stock futures rise as inflation worries ease. S&P 500 futures rose by +0.21% pre-bell as bulls managed to hold above 3800, near-term support. Upside gains are capped by the 3950 level, coinciding with a 50-day moving average on a daily chart.
Nasdaq100 futures surged by +0.31% despite bulls struggling to hold gains below the 12000 psychological level. A break above that level would trigger buying pressure although gains are capped by the 12200.00 level.
Dow Jones Industrial Index was up +0.25% claiming the 31000 psychological barrier, a breach of 31200 resistance could open room for further upside gains towards the 32000 level.
Oil markets took a breather after a massive 2-day sell-off. Brent rose by +1.70% after finding near-term support at the 98.80 level, a 3-months low. Upside gains are capped by the 104.85 resistance.
USWTI crude oil futures soared by +1.10% and bulls managed to defend the 95.15 level despite gains capped by the $100.00/barrel. If the bulls manage to reclaim that level 102.00 will be the next possible target.