GBP rallies before England football final

“Never test the depth of the river with both of your feet.” Warren Buffet

 

 

FOREX

 

 

ECB Accounts: Members debated reducing bond purchases in June meeting

 

“Members expressed broad agreement with Lane's proposal to reconfirm the 'very accommodative' monetary policy stance.”

“Concerns expressed that any change in net purchases not based on improvement in inflation outlook would lead to unwarranted tightening of financial conditions. But it was also argued that, to provide same degree of accommodation, asset purchases should be scaled back somewhat.”

 

GBP/USD Forecast: Positive momentum hints at further gains

 

The GBP/USD pair soared on Friday to close the week with gains around the 1.3900 level. The pound advanced despite dismal UK data, instead fueled by risk-on flows. The country published its monthly Gross Domestic Product, which resulted in 0.8% in May, missing the expected 1.5%.

Additionally, tensions with the EU over Brexit continue. The dispute now gyrates around the size of the UK’s Brexit bill, as the Union indicated that Britain would be obliged to pay €47.5 billion as part of its post-Brexit arrangements.

 

 

COMMODITIES

 

 

WTI crude oil settles at $74.56 to end streak of six weekly gains

 

Weak hands were shaken out of the crude oil trade from Tuesday to early Thursday but a rebound late Thursday was followed by a $1.54 gain Friday to leave crude oil only modestly lower on the week. It does however cap a six-week winning streak after a one-way rally to $77 from $64.

 

Gold logs best week in 7 as Delta variant risks loom

 

Gold rose on Friday, heading for its best week in seven, bolstered by a weaker dollar and concerns that the spread of the Delta variant of the coronavirus could slow a global economic recovery.

Gold, a hedge against economic and political uncertainties and also rising inflation, attracted buyers as vaccination shortfalls and highly contagious coronavirus variants prompted fresh restrictions, especially in Southeast Asia.

 

 

STOCKS

 

 

Wall Street posts record closing highs as financials lead rebound

 

The three major U.S. stock indexes rallied to record closing highs on Friday as financials and other economically focused sectors rebounded from a selloff sparked by growth worries earlier in the week.

The rally allowed the indexes to notch slight gains for the week, which also saw a sharp rally in U.S. Treasuries as investors worried the U.S. economic recovery might be losing steam as the Delta variant of the coronavirus spread globally.

 

Virgin Galactic Launches First Fully Crewed Flight, Sends Richard Branson Into Space

 

Virgin Galactic (SPCE) conducted its first fully crewed flight on Sunday, sending Richard Branson into space. SPCE stock fell Friday. The flight not only means the company's billionaire founder beat Blue Origin's Jeff Bezos to space, but it's also crucial to the start of commercial service.

Virgin Galactic shares fell 6.6% to close at 49.20 on the stock market Friday. SPCE stock has jumped more than 9% this week, and its 50-day line is now back above its 200-day line.

 

 

CRYPTO

 

 

Circle listing will test top stablecoin’s transparency over reserves

 

Circle made a big pledge this week in announcing its plans to become the first operator of a stablecoin to list on the New York Stock Exchange: chief executive Jeremy Allaire said his company would “become the most public and transparent operator of full-reserve stablecoins in the market today”.

 

 

MORE HEADLINES

 

 

ANALYSIS

 

 

USD/CNY to advance nicely through the second half of 2021 – HSBC

 

“This is the first time in more than a year since the State Council mentioned using RRR cuts as one of the monetary policy tools. In our economists’ view, this opens a door for a possible RRR cut in the coming months, if not weeks.

“A higher USD/CNY has played into our thinking that the broad USD should begin to bottom in the months ahead. After all, the CNY’s performance is a key determinant of the broad USD overall. Our long-standing view has focused on the actual start of the Federal Reserve’s (Fed) tapering being supportive for the USD, especially those major central banks that could be expanding their balance sheets in contrast to the Fed or are having monetary policy shifting in a different direction.”

 

 

CHART

 

 

Wall Street 30 index – Daily Candlesticks

 

Source: GKFX Prime Metatrader 4

WS30 reached a new record closing high on Friday, breaking out above a 2-month-old resistance around 34850. The breakout implies the continuation of the uptrend. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

SOURCE

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/usd-cny-to-advance-nicely-through-the-second-half-of-2021-hsbc-202107090727
https://www.fxstreet.com/news/ecb-accounts-members-debated-reducing-bond-purchases-in-june-meeting-202107091219
https://www.investing.com/news/stock-market-news/dow-sp-futures-rise-as-banks-energy-stocks-rebound-2553832
https://www.ft.com/content/7676451f-23a9-42eb-a179-c3ebbcfc0bff
https://www.investors.com/news/spce-stock-virgin-galactic-test-flight-with-richard-branson/
https://www.forexlive.com/news/!/wti-crude-oil-settles-at-7456-to-end-streak-of-six-weekly-gains-20210709
https://www.cnbc.com/2021/07/09/gold-markets-us-treasury-yields-dollar.html