Forex
EURUSD: Backed by hopes of a solid economic recovery amidPrivate sector activity data showing the biggest expansion in 15 years, effortsfor reopening and rapid pace of vaccinations, the euro held up above 1.19 in thisThursday. Among the largest economies in the bloc, the activity of the private sector in theGermany had its biggest growth in more than a decade.
DXY: The dollar was falling and tested the 91.7 region before reboundinglightly. Investors seem to have recognized that the Fed just wanted to signal thatwas ready to deal with the rise in inflation, without taking any steps to remove thestimulus from the crisis period
Commodities
Gold: In slight decline, gold remained below USD 1780, remaining closefrom its lowest level in 7 weeks, reached on June 17th.
Indexes
Wall Street: Both the Nasdaq and the S&P 500 renewed record highs in sessiontoday, while the Dow Jones was up over 300 points or nearly 1%.US officials continue to minimize the risk of rising inflation andneed to tighten monetary policy. Treasury Secretary Yellennoted that inflation in the US is expected to retreat by the end of the year from its current levelhigh, as the problems with the offer are resolved, while the presidentThe Fed’s Powell says he won’t raise interest rates anytime soon to support theeconomy.
Europe: In Europe, the indices closed sharply higher, supported by stocks in the market.technology and better-than-expected economic data and commentarydovish of the president of the Bank of England . The morale of German businessmen rose inJune to its highest level since November 2018, signaling that the economyis gaining traction following the lifting of some restrictions related to COVID-19.Meanwhile, the Bank of England has left monetary policy unchanged, saying thatthe recent rise in consumer prices should be temporary and reassuringinvestors of their support for the economy. The DAX 30 rose nearly 1% to close above thelevel of 15,580. Other important indices closed higher between 1.3% and more than 2%
News
United States GDP Growth Rate: The US economy grew by6.4% in the first quarter, in line with the second estimate and following an expansion4.3% in the previous three-month period. On the production side, the producing industriesof private goods grew 5.4%, led by computer and electronic products,manufactured metal products and machinery. The service production sectorsprivate companies increased by 7.7%, led by data processing, publication in theInternet and other information services, and the government grew by 0.2%. Analysts see theeconomy expanding about 9% in the second quarter, although the growingpressures on prices are already weighing on some sectors, such as the marketreal estate.
United States Initial Jobless Claims: The number of Americans who filed newclaims for unemployment insurance dropped to 411,000 in the week ended June 19,of 418 thousand revised in the previous period; the expectations however were of 380 thousand. Ototal number of applicants remained close to the lowest levels since the beginning.pandemic hit earlier this month as broader reopenings ofbusiness boosted economic activity and demand for labor. At theHowever, employers across the country have complained about the difficulty of hiring,citing the continuing shortage of labor due to greater benefits,concerns about COVID-19 and the demand for day care centers. Meanwhile, the reportthis week will reflect the first period of the survey after the early elimination offederal unemployment benefits in many states. On June 12, Alaska, Iowa,Missouri and Mississippi became the first states to reduce federal support before theofficial expiry date of September.
Source:https://wintrademarkets.com/
