Wednesday is here! News is here too.
The European Central Bank news
Luis de Guindos from ECB: ‘Inflation is more resilient than expected’ and ‘ECB to raise the rate in July.’ RTRS says, ‘ECB members are leaning towards further rate hikes. Also, consider accelerating the reduction of the ECB’s balance sheet.’
The EURUSD is trying to break the resistance of 1.1000. If bulls succeed – the next target will be 1.1090. The price is in the bullish channel. There is still a possibility that the market will form the classical Head and Shoulders pattern, but personally, we don’t believe in that. ECB is ready for the rate hike. As a result, EUR may start rising against other currencies.
The situation in the US economy
The US consumer confidence in June rose to 109.7 points. According to the Conference Board: ‘The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—rose to 155.3 from 148.9 last month. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—rose to 79.3 from 71.5 in May.’
The Conference Board Chief Economist Dana Peterson: ‘Consumer confidence improved in June to its highest level since January 2022, reflecting improved current conditions and pop-in expectations.’
New Home Sales increased to 763K vs. 675K, as expected. That gives Fed room for the rate hike. Goldman Sachs raised its Q2 2023 GDP growth forecast to +2.2% QoQ from +1.8% previously – and again after solid housing data.
The US stock market reversed again. S&P500 grew by 1.15%, Dow Jones rose by 0.63%, and Nasdaq100 jumped by 1.75%.
BTCUSD has almost reached 100MA on the Weekly timeframe. Be careful with long positions, dears. The cryptocurrency may be correct.
XAUUSD is still above $1900 – the local trend is bearish, BUT the global trend is still bullish. 200MA is heading up.