Financial News Today

Market Overview

The decline in U.S. retail sales with Core CPI's release of -0.1%, from last month's 0.2% growth, showed that consumers are finding it difficult at current rates but that the economy is still advancing, albeit slowly. The trend started strong at the start of the quarter with 1.1% Core CPI growth to a great decline of only 0.2% in May, until a negative growth of -0.1% this June.  

The drop in retail sales also caused a retraction on U.S. Treasury Yields by 6.2 basis points to 4.217%, from 4.279%.

Market expectations that the Federal Reserve could cut rates at its September meeting crept higher, pricing in a 67.7% chance for a cut of at least 25 basis points, up from 61.5% on Monday.

The Dow Jones Industrial Average rose 56.76 points, or 0.15%, to 38,834.86, the S&P 500 gained 13.80 points, or 0.25%, to 5,487.03 and the Nasdaq Composite gained 5.21 points, or 0.03%, to 17,862.23.

U.S. markets will be closed Today for the Juneteenth holiday. With that, we expect a weak market.

New York Federal Reserve Bank President John Williams said interest rates will come down gradually over time, but declined to say when the U.S. central bank can kick off its monetary policy easing, while Richmond Fed President Thomas Barkin said he needs to parse several more months of data before he can consider supporting a rate cut.

Other Fed officials also struck notes of caution. Governor Adriana Kugler said the central bank can't risk the progress made so far by cutting rates too soon.

GOLD - There are still no developments in this market as we see the price is range-bound between 2332.174 and 2295.536. Soft retail sales may push GOLD prices higher as sufficient data releases may show a slowdown in the U.S. economy and that the rate cuts are coming soon.

SILVER - Silver is still in a range, showing no appropriate volume to break out of structure. We are waiting for further confirmation before trading further. Currently, the price is trading below 29.900 and is still above 29.018.

DXY - The Dollar fell short after soft retail sales data. The price can now be seen reaching 105.071.

GBPUSD -Not much movement for the GBP as the price remains consolidated even after the soft US retail sales data release. We wait for further price prints for confirmation of any bias. As the price stands, it is consolidated between 1.26487 and 1.27938.

AUDUSD -Stronger AUD as RBA left rates behind. With the increasing chances of a rate cut for the U.S., the market saw recovery against the dollar as the price broke through 0.66541. However, the price remains consolidated.

NZDUSD -The price is still consolidated and is slightly above 0.60954 and is now testing 0.61408. We wait for further price movement to see how the market will continue.

EURUSD -EURUSD has risen slightly above 1.07240 but remains below 1.07637. We need additional price action to confirm the market bias.

USDJPY -USDJPY continues to see the Yen losing ground to the dollar, trading above 157.193. Further price action is needed to understand the market's next move.

USDCHF -USDCHF has fallen below 0.88886, indicating CHF strength. We are waiting for a rebound to confirm the price action. Currently, the market is expected to move lower from this point.

USDCAD -USDCAD is trading slightly below 1.37435, showing strength for the CAD. Despite this, the price remains consolidated. We need further price prints to confirm future movements.