Market ahead of summer moves

Summer is in full swing, consumer prices are rising, yet jobs are coming back. A short update from us this week. Many good to come by the end of this month!

What moved the markets?

The S&P 500 reached a new all-time high after CPI figures spiked more than expected. The headline CPI rose by 5% year-on-year in May.

The European Central Bank (ECB) left its key rates steady, and the PEPP is expected to continue increasing at a higher pace until the end of March 2022

Oil Prices rallied after OPEC +moves to adhere to its current plan of gradually easing production restrictions, and continued optimism about a recovery in global demand in the second half of 2021.

The Canadian dollar hits its 6-year high after the Central Bank of Canada decided to reduce its asset purchase programs, however last week the central bank held its interest rate unchanged. The loonie is one of the top-performing currency this year due to surging commodity prices, specifically in oil.

GBP / USD – a pair to watch

The pair hit a three-year high at the start of June as the UK economy continued to reopen. It has been range-bound recently, but we are hoping for some volatility, especially with the favorable news calendar ahead this week.

MACD indicator is stating positive momentum to be running out of steam, RSI has turned lower, so we might see GBP USD look to break through the lower end of the range.

Yet, do not forget the previous weeks DXY analysis which if maintained, would look to break the equal highs created earlier this month before the end of this week.