Economic Highlights

Market Overview

The stock market closed mixed on Monday as investors adopted a “wait and see” approach, anticipating major news later in the week from both the U.S. and U.K. Key events include U.S. Federal Reserve Chair Jerome Powell's semi-annual Congressional testimony starting Tuesday, and the release of June consumer (CPI) and producer (PPI) price indexes on Thursday and Friday, respectively. These reports may influence the Federal Reserve's decisions on interest rate cuts.

Economists polled by Reuters predict a 0.1% monthly growth in CPI and a 3.1% year-over-year increase, down 20 basis points from May. Core CPI, excluding volatile food and energy items, is expected to remain consistent with May's 0.2% monthly and 3.4% annual growth rates. Additionally, the Federal Reserve reported an $11.35 billion increase in consumer credit outstanding for May, surpassing expectations by 19.5%.

GOLD - Gold has experienced a technical correction, trading below 2365.443. Analysts anticipate renewed strength in gold once Powell's testimony is released, potentially signaling further rate cuts.

SILVER -Silver has found support at 30.668 and is expected to continue its bullish trend. This recent dip is viewed as a technical correction, providing a better buying opportunity. The demand for safe-haven assets remains strong amid global uncertainties.

DXY - The DXY shows weakness, trading below 105.071. A continuation of this trend is expected as market participants anticipate further rate cuts. However, there may be temporary consolidation or slight recovery following Powell's talk.

GBPUSD -The Pound has shown strong buying momentum, indicating a technical recovery. Further rise is expected after this period of consolidation.

AUDUSD - The Aussie dollar is expected to rise further. We continue to monitor how the price progresses.

NZDUSD -The NZ dollar is consolidating slightly below 0.61408. We anticipate a bullish run but continue to observe price movements for further confirmation.

EURUSD -The Euro is trading sideways but shows a bullish bias. Despite the uncertainties in both the US and European economies, the overall momentum favors the Euro. Consolidation within the wide range is expected.

USDJPY -The Yen is recovering, trading between 160.224 and 161.105. While there is potential for the Yen to lose against the dollar, recovery may also start from these levels.

USDCHF - The CHF has shown both strength and weakness against the dollar, currently trading below 0.90054. A potential US rate cut could lead to a temporary recovery for the CHF.

USDCAD - The CAD shows strength, trading sideways despite the recovery in other USD pairs. We anticipate further declines in the market but continue to monitor for any significant changes.