Friday June 21st , 2024

The USD opens stronger, equities and treasury yield and oil hedges lower. The USD recent strength can be attributed to the fact that the Fed is less dovish than other Central Banks. On the economic data front, US manufacturing PMI and Canadian retail sales are to be released later this morning.

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In other news.?Putin's comments on Thursday that Moscow may supply weapons for North Korea are incredibly concerning according to US state Department spokesperson. Putin has warned South Korea it would be making "a big mistake" if it arms Ukraine. South Korea summons Russian ambassador as tensions rise with North Korea. United States and China resumed semi-official nuclear arms talks in March for the first time in five years, with Beijing's representatives telling U.S. counterparts that they would not resort to atomic threats over Taiwan. Israeli forces step up bombardment across Gaza. White House expressed deep disappointment over criticism from Netanyahu.

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In currency news. Japan issues fresh warning against yen bears as currency slides. The USD is gathering strength this morning rallying 0.05% against the CNY and JPY, while loosing 0.27% against the THB. The AUD dropped 0.09% while the NZD gained 0.10% against the USD. In the trading currencies, the ZAR and the MXN rallied against the dollar. 0.48% and 0.32% respectively.

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In commodity markets.?Crude oil futures are flat to start the day but on course to rise for a second week amid signs of improving demand and falling oil and fuel inventories in the U.S. Gold prices were poised for a second consecutive weekly gain as well, driven by safe-haven demand amid tensions in the Middle East and rising bets that the U.S. Federal Reserve might reduce interest rates later this year. Silver is off by 1% as we end the week. Copper eased on Friday on a firmer dollar and high inventory level. Wheat is headed for its 4th week decline as harvest brought in new supplies and production outlook improved. Soybean is up 1% as we enter the last trading day of the week.

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Current level USD Index???????????????105.720 ? ? ? ? ? ?Up 0.13%

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The USD/CAD remains under some selling pressure despite the overall USD strength. The recent rise in oil prices and the BoC Summary of Deliberations on Wednesday noted the risks of cutting too soon against the dangers of waiting too long are the main causes. Macklem said that it’s reasonable to expect further rate cuts, but that the decline in interest rates will likely be gradual.

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Current level USD/CAD???????????????1.3689???????????? Down 0.07%

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The EUR/CAD downtrend continues as the pair broke through the 1.4700 level and is now trading near a 6-week low. Expected ECB rate cuts in 2024 can limit the move higher of this currency pair.

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Current level EUR/CAD????????????????1.4642??????????? Down 0.03%

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EUR/USD faces selling pressure due to multiple headwinds. The major currency pair declines to a six-week low near 1.0670 as the Euro weakens after downbeat Eurozone’s preliminary PMIs data that suggested the economy is losing momentum. ECB's Knot sees one or two more rate cuts this year.

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Current level EUR/USD????????????????1.0694??????????? Down 0.06%

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The GBP/EUR retraced near it recent highs on the back of the BoE’s decision to keep rates on hold and citing tight later market and sticky inflation.

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Current level GBP/EUR???? 1.1813 (0.8453)????????Down 0.09%

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The GBP/USD drops as dismal market mood and poor UK PMI weaken the impact of upbeat Retail Sales. Financial markets expect that the BoE will start reducing interest rates in August, which means there will be no rate cuts before the parliamentary elections.

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Current level GBP/USD????????????????1.2649 ???????????Down 0.103%

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Other ccy levels vs C$. GBPCAD 1.7312? AUDCAD .9103? CADCHF.6517?CADJPY 116.16? CADTHB 26.75? CADCNY 5.3016? CADNOK 7.7029?CADSEK 7.6816 CADDKK 5.0942? CADZAR 13.0680

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Other ccy levels vs USD. JPY 158.94? CHF.8923? AUD.6648 NZD .6121? CNY 7.2611 ?MXN 18.2879? INR 83.5405 ?PLN 4.0522 CZK 23.330 ZAR 18.2846? ILS 3.7456? AED 3.6724? KWD 0.30670

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Other Major X levels. EURCHF.9546? EURJPY 169.89? EURSEK 11.2432?EURNOK 11.2747 GBPCHF 1.1282? EURAUD 1.6073? GBPAUD 1.9012?AUDCHF.5934? AUDJPY 105.69? CHFJPY 177.94.

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