Market update: June 21, 2021
|We hope that you had a great Father’s Day with minimal disturbance and you have focused back on charts right away this Monday.
Forex Markets have shown great volatility again, while Equity and Crypto markets have been plummeting as well the second part of the week. Equity markets and crypto have both been getting clapped the past few days. With market-facing shock after Fed comments, let’s see what we are looking at this week!
What moved the markets?
The Federal Reserve signaled it might increase interest rates twice in 2023. This spooked the markets as the update in March did not project any rate hikes for the year in question. The Dow Jones fell to its lowest level in over one month, the US dollar hit a two-month high, and gold fell to a seven-week low. 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.
UK CPI rose from 1.5% to 2.1%, its highest reading since 2019. The rise in costs is partly due to higher commodity prices but underlying demand is increasing too as core CPI came in at 2%, up from 1.3%
Oil hit a new two-year high during the week as the recovery assisted the market, but the energy was pulled lower by the firmer US dollar and general risk-off attitude after the Fed meeting.
S&P 500 – an index to watch
Let’s dive into a daily charts for E-Mini S&P September Futures.
Just last week we have created new highs for this year and then plummeted immediately not even giving time for traders looking for shorts to jump in. This recent bounce we have just witnessed this morning looks great and promising.
Since we are traders here, not investors, it looks promising, because for the second day of the week we will have a clear picture of whether we are looking too long or short the pair itself!
If we confirm the movement upwards, consider running above last week’s highs into 4280 levels with ease. If, however, we draw to the downside and below the low created this morning, consider 4020 being attacked very rapidly! Good luck!
What’s new to come?
Not too much on our end to be fair with you for this week, yet, your account agents have lots to offer if you would give them a chance and spend 5 minutes with them! Be expecting them to reach out during this week, they have tons to offer!
Good luck and good trading!