Today's Market Updates

Reminders

The dollar and currencies remain vulnerable to data releases. Remain looking for short-term opportunities in the market to earn from price trading.

Market Overview

After data released for the May Manufacturing Index yesterday, the sector saw growth to -6 from last month's -15.6. However, this slight recovery does not equate to an expanding manufacturing sector yet as it found itself in the negative for the 7th month in a row. While the recovery may result to show slightly better employment and wages, we wait to see how it has affected the Core Retail sales to be released later this day.

“There isn't an appetite to be a real seller right now because there is a perception that momentum is going to continue, and stocks are going to continue winning,” said Daniela Hathorn, senior market analyst at Capital.com.

“The fact that the rally has been driven mostly by a select few stocks, would mean that the pullback could be even deeper.”

The Dow Jones Industrial Average rose 188.94 points, or 0.49%, to 38,778.10, the S&P 500 gained 41.63 points, or 0.77%, to 5,473.23 and the Nasdaq Composite gained 168.14 points, or 0.95%, to 17,857.02.

Goldman Sachs raised its year-end S&P 500 price target to 5,600 from the prior 5,200, while Evercore ISI lifted its price target to 6,000 from 4,750.

U.S. equities had pushed to record levels last week following several inflation readings that indicated price pressures may be ebbing, even as the Federal Reserve adjusted its economic projections to only include one rate cut for the year.

Markets are currently pricing in a 61.5% chance for a 25 basis point cut in September, according to CME's FedWatch Tool, down from about 70% in the prior session.

The yield on benchmark U.S. 10-year notes rose 6.8 basis points to 4.281%.

“The Empire State helped a little bit, but it's more than that,” said Stan Shipley, managing director and fixed income strategist at Evercore ISI in New York. “Yields came down a lot last week and so some people are taking profits here.”

U.S. crude settled up 2.4% to $80.33 a barrel and Brent rose to end at $84.25 per barrel, up 2% on the day, building on the prior week's gains as investors turned more optimistic on demand growth in the months ahead.

GOLD - Gold remains within the range of 2314.890 and lower boundaries, showing no significant breakout. We await additional price movements to identify any shift in market sentiment or a potential breakout from this consolidation phase.

SILVER -Silver has been consolidating, slightly rising above 29.018 without falling below this structure. Further price prints are needed to determine the direction Silver might take.

DXY - The DXY has declined after failing to reach 105.840 but may find support at 105.071. We need more confirmation before establishing a bias on the Dollar's direction.

GBPUSD - The market failed to reach 1.26487 and has instead returned to trade just above 1.27006, approaching 1.27256. We will monitor for further price prints to gauge future movement.

AUDUSD -The market has shown little movement since the markets closed yesterday, stabilizing at 0.66145 after bouncing off 0.65869. We await further price confirmation to assess the market's direction.

NZDUSD - The price made minimal progress since yesterday, nearing last Friday's close. The price is approaching 0.61408 after failing to reach the 0.60954 structure. We need further confirmation to understand how this pair will trade.

EURUSD -The market has tested the trendline for resistance, currently trading slightly above 1.07249. We will wait for additional price prints to confirm the overall market bias.

USDJPY - The market exhibited little action, printing multiple dojis before the market closed yesterday. The price remains slightly above 157.193. We await further price prints to determine the market's direction.

USDCHF - The market is trading below 0.88855. If the price breaks below this level, we expect continued selling pressure. We need further price confirmations before determining a bias for this market.

USDCAD -The market is trading slightly below 1.37435 and remains range-bound. We will observe further price action to understand how this pair will move but note that it is still stuck within a range overall.