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USDJPY hits fresh 2 decade high

“Don’t play games that you don’t understand, even if you see lots of other people making money from them.” — Tony Hsieh 

 

 

HEADLINES

 

 

Dollar dips as stocks advance; hits 2-decade high vs yen 

Gold rises as inflationary pressures mount, yields fall

Oil up 1%, supplies seen tighter as China relaxes COVID-19 curbs

Wall St slips after Target's margin warning; inflation data eyed

Bitcoin drops 5% to again trade below $30,000 as sell-off resumes

GBP/USD needs to firm up past the mid-1.25s to improve its fate – Scotiabank

USDJPY Near Term: Upside favored

 

 

FOREX

 

 

Dollar dips as stocks advance; hits 2-decade high vs yen 

 

 

The U.S. dollar index retreated from earlier highs and fell on Tuesday as U.S. equities shook off an early risk-off mood and turned positive, but the greenback managed to hit its highest level in 20 years against the Japanese yen. 

 

 

COMMODITIES

 

 

Gold rises as inflationary pressures mount, yields fall

 

 

Gold prices rose on Tuesday on investor concern over the economic fallout of aggressive policy tightening by major central banks, although gains were limited as elevated U.S. Treasury yields supported the dollar. 

Spot gold rose 0.5% to $1,849.98 per ounce. Earlier in the session, bullion touched $1,836.10, its lowest since June 1. U.S. gold futures climbed 0.5% to $1,852.8.

Although gold is considered a hedge against higher inflation, interest rate hikes remain a potential headwind since that translates into a higher opportunity cost of holding non-yielding bullion.

 

 

ENERGY

 

 

Oil up 1%, supplies seen tighter as China relaxes COVID-19 curbs

 

 

Oil prices rose about 1% in a seesaw session on Tuesday, with U.S. crude on track for a 13-week high on supply concerns and the prospect of higher demand after China relaxes lockdowns to control the pandemic. 

Brent futures rose 79 cents, or 0.7%, to $120.30 a barrel by 11:30 a.m. EDT (1530 GMT). U.S. West Texas Intermediate (WTI) crude rose 71 cents, or 0.6%, to $119.21.

WTI was on track for its highest close since March 8 when it settled at its highest since August 2008. Brent was headed for its highest close since May 31.

 

 

STOCKS

 

 

Wall St slips after Target's margin warning; inflation data eyed 

 

 

U.S. stock indexes slipped in choppy trading on Tuesday as investors digested Target Corp's gloomy margin forecast that spooked the retail sector, while awaiting inflation datadue later this week. 

Shares of Target (TGT.N) slid 4.3% as the big-box retailer said it would have to offer deeper discounts and cut back on stocking discretionary items.

The weak outlook weighed on other retail stocks, with main rival and Dow component Walmart Inc (WMT.N) falling 2%. Dollar General (DG.N), Costco (COST.O), Home Depot (HD.N) and Best Buy Co Inc (BBY.N) fell between 0.4% and 2.3%.

 

 

Bitcoin drops 5% to again trade below $30,000 as sell-off resumes 

 

 

Bitcoin fell below $30,000 again Tuesday as the cryptocurrency’s recent sell-off resumed. 

The moves followed a report that the Securities and Exchange Commission is investigating the possibility that the BNB token, a cryptocurrency issued by Binance, could be categorized as a security. BNB led the market-wide sell-off. It’s currently down 6%.

 

 

ANALYSIS

 

 

GBP/USD needs to firm up past the mid-1.25s to improve its fate – Scotiabank 

 

 

“The decline to a fourteen-session low is signaling greater downward pressure than in recent declines under 1.25.”

“The pound’s daily low of 1.2431 stands as key support after ~1.2480, with the mid-1.24s also standing as a psychological floor.” 

“We think the GBP will need to firm up past the mid-1.25s shortly and then push past 1.26 to improve its fate as recent price action is suggestive of a reversal of its May gains.” 

 

 

CHART

 

 

USDJPY Near Term: Upside favored

Technical View: Long position above 131.5. Target 133.65. Conversely, break below 131.5, to open 130.7.

Comments: The pair is expected to resume advance after correction.

 

 

 

 

Source: Trading Central 

 

 

CALENDAR

 

 

*Times in GMT

 

 

 

 

Source: FX Street Economic Calendar


Footnotes
https://www.reuters.com/markets/europe/dollar-extends-20-year-high-vs-yen-amid-inflation-jitters-aussie-slips-before-2022-06-07/
https://www.cnbc.com/2022/06/07/gold-prices-rise-as-central-banks-rev-up-policy-tightening.html
https://www.reuters.com/markets/commodities/oil-prices-edge-higher-relaxed-china-covid-curbs-tight-supplies-2022-06-07/
https://www.reuters.com/markets/europe/futures-slip-worries-over-rising-inflation-rate-hikes-2022-06-07/
https://www.cnbc.com/2022/06/07/bitcoin-drops-6percent-to-again-trade-below-30000-as-selloff-resumes.html
https://www.fxstreet.com/news/gbp-usd-needs-to-firm-up-past-the-mid-125s-to-improve-its-fate-scotiabank-202206071327