Summary:
- Stocks attempt to recover after Monday’s declines
- USD moving higher despite data miss
- Swedish PPI surges; Where next for EURSEK?
- Top 3 charts this week
- Is the GBPUSD set for a reversal?
The week began in quite an ugly fashion for stocks but today’s trade has been more constructive with the US looking to find a footing after the recent declines. The US30 ended Monday below its 200 day SMA for the first time in almost 2 years, but there’s not been any further declines today and the market appears to be looking to find some support.
The US dollar has moved higher this afternoon with the buck now making gains against nearly all of its peers on the day. Recent sessions have seen a pullback in the USD after a sustained push higher, but it appears for now that USD bulls aren’t willing to give up easily. Even a slight miss in the latest consumer confidence figures has failed to halt the rise, with the market seemingly shrugging off the data.
Admittedly, the Swedish krona is not placed among the best performers within major currencies at the time of writing but it did receive some support today from a higher inflation reading. Producer price index in May increased 6.3% in annual terms from 4.9% a month earlier reaching the highest level since May last year. Looking at the breakdown one may spot that energy prices were a prime reason behind a surge as they rose as much as 19.3% yoy despite quite adverse base effects.
This week does not hold the top-notch calendar events that we got used to – think FED decision, OPEC meeting or the NFP report. But with the Trade Wars raging, markets are as lively as ever. We take a look at three charts that can see a technical conclusion this week.
The second quarter of this year is slowly coming to an end, and the British currency cannot say it has had a fruitful period of time. The pound lost over 5.5% against the US dollar. Is the pessimism overdone though? In today’s analysis we provide several reasons why the GBP could see a bounce over the coming weeks.