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Markets Today 15th June 2022

MARKET WRAP – 15th June 2022

  • The AUD/USD pair continues to fall, now trading in the 0.6860 price zone, as investors rush into the greenback’s safety ahead of the US Federal Reserve monetary policy decision.  Bets raise on a potential 75 bps rate hike by the Federal Reserve.

 

  • The Dow Jones Industrial Average declined 0.5% to 30,364.83, while S&P 500 dropped 0.4% to 3,735.48. The Nasdaq Composite was up 0.2% to 10,828.35. The S&P 500 closed in bear market territory on Monday.

 

  • • US PPI for May was 0.8% MoM as expected and 10.8% YoY, lower than expectations of 10.9% with negative revisions to both numbers. Core measures were also on the weaker side, coming in short of expectations. Across the border, Canadian Manufacturing Sales for April rose 1.7% as expected.

 

  • The US 10-year yield advanced 11.7 basis points 3.48%, touching its highest level in over a decade.

 

  • The S&P 500 has fallen 9.6% so far in June, its worst performance during the first 10 trading sessions to a month since 2008. It is down 22% from its latest closing record, which it hit in early January.

 

FX

  • US Dollar Index (DXY) bulls take a breather after refreshing a two-decade top, dropping back to 105.00 during early Tuesday morning in Europe, amid the market’s positioning for Wednesday’s Federal Open Market Committee (FOMC).  That said, the greenback gauge tracks the US Treasury yields while snapping a four-day uptrend near the multi-year high.

 

  • The EUR/USD pair retreated from an intraday high of 1.0484 to end the day unchanged just above the 1.0400 figure. Wall Street maintains the red amid fears the US central bank will step up aggressive quantitative easing.

 

  • GBP/USD extended its daily slide and touched its lowest level since March 2020 below 1.2000 in the American session. Brexit jitters and the risk-averse market mood continue to weigh on the pair on Tuesday as the FOMC policy meeting gets underway.
  • USD/JPY bounces off 134.00 as USD bulls fight back control. European indices return to the red, propping up the dollar demand.  Currently sitting at a multi-decade high and gathering momentum.


                                     TODAY’S KEY RISK EVENTS

  • All eyes will be on the Federal Reserve tonight as we await their interest rate decision and Jerome Powell’s guidance on future rate rises.  Expectations are for a .75 basis point hike with some analysts even discussing a 100-basis point hike.  We expect significant volatility in overnight trading tonight.

 

                                                                                                          

CURRENCY/INDICIES RANGES

Currency Pair Low High
AUD/USD 0.685 0.697
EUR/USD 1.0397 1.04845
GBP/USD 1.1934 1.221
USD/JPY 133.88 135.44
NZD/USD 0.6197 0.62925
USD/CAD 1.2867 1.2975
USD/CNH 6.7277 6.786
AUD/JPY 92.38 93.89
AUD/NZD 1.1036 1.1087
DXY 104.622 105.652

 

Equity Index Daily % Change Closing Level
ASX -3.5% 6686
SHANGHAI COMP 1.0% 3289
NIKKEI -1.3% 26630
FTSE -0.3% 7187
DAX -0.9% 13304
CAC -1.2% 5950
DOW JONES -0.5% 30365
S&P 500 -0.4% 3735
NASDAQ 0.2% 10828
VIX -3.9% 32.69
 
     
Commodity Daily % Change Closing Level
CRUDE OIL -1.8% 118.7
ICE NAT GAS 27.9% 196.6
GOLD -0.2% 1808.2
SILVER 0.4% 21.0
SGX IRON ORE -0.6% 132.5
CMX COPPER -1.8% 415.4
ICE SUGAR -0.3% 18.8
ICE COTTON -1.8% 196.6
CBT WHEAT -1.9% 1065.0
BITCOIN -2.5% 21905.9
 
     
Rates Markets Yield Daily Change
US 2 YEAR 3.43% 7.4
US 10 YEAR 3.48% 11.3
AUST 2 YEAR 3.08% 33.2
AUST 10 YEAR 3.96% 28.1

Source – Bloomberg

   

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Disclaimer:This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711.  The material contains general commentary only and does not constitute investment or any other advice.  Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors.  This information has been prepared without considering your objectives, financial situation or needs.  Please seek your own independent legal or financial advice before proceeding with any investment decision. The information is believed to be accurate at the time of compilation and is provided in good faith.  Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract.  This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change.  Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.

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