Fundamental news and macroeconomic news to watch out for week 14 to 18th June 2021.

This week is preoccupied by fundamental analysis scenario kind of market trend moving news that is meant to affect many currencies for Forex Traders and Equities and Commodities. The following highlight of event are key for a trader who understands how to undertake fundamental and technical analysis. 

Three things we learned last week 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, driving US bond yields to three-month lows – CPI figures are sitting at the highest point since August 2008 amid low base effects from 2020. 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. 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.

For your diary  Monday, June 14th  Japan Revised Industrial Production Euro Area Industrial Production Canada Manufacturing Sales BOE Gov Bailey Speaks   Tuesday, June 15th Australia Monetary Policy Meeting Minutes UK Average Earnings Index 3m/y UK Unemployment Rate BOE Gov Bailey Speaks US Core Retail Sales US PPI m/m US Empire State Manufacturing Index US Industrial Production New Zealand GDT Price Index   Wednesday, June 16th   China Industrial Production China Retail Sales UK CPI y/y Canada CPI m/m US Crude Oil Inventories FOMC Economic Projections US Federal Funds Rate New Zealand GDP  Thursday, June 17th RBA Gov Lowe Speaks Australia Employment Change Australia Unemployment Rate  SNB Monetary Policy Assessment  SNB POlicy Rate  US Philly Fed Manufacturing Index  US Unemployment Claims    Friday, June 18th  BOJ Monetary Policy Statement BOJ Policy Rate UK Retail Sales Euro Area ECOFIN Meetings

 Earnings Forecast week 14th - 18th June 

Listed below are our top picks for next week’s earnings:

 

• Monday, 14th June: PlugPower
• Wednesday, 16th June: AO
• Thursday, 17th June: Adobe and Kroger
• Friday, 18th  June: Carnival and Fitbit

 

Corporate action ahead

Here are this week’s big dividend announcements, with their forecasts:

• Monday: American International Group Inc with cash dividends of $0.32
• Monday: Coca-Cola Co/The  with cash dividends of $0.42
• Monday: Merck & Co Inc with cash dividends of $0.65
• Monday: Gilead Sciences Inc with cash dividends of $0.71
• Thursday: Taiwan Semiconductor Manufacturing Ltd  with cash dividends of $0.45
• Friday: UnitedHealth Group Inc with cash dividends of $1.45

 

 

Stocks rally, US dollar rebounds, Fed in focus

 

Equity markets had a positive run last week. The FTSE hit its highest level in one month and the S&P 500 registered a record close. The recovery story is not only helping equities, but also assisting oil – which set a new two-year high. On Friday, the US dollar hit a one-week high, which dented the EURUSD and GBPUSD. Gold suffered too because of the rally in the US dollar.

The Fed meeting on Wednesday will be the highlight of the week ahead. Recently, the Fed have stated they will not look to tighten their extremely loose monetary policy until their economic targets have been achieved. Last week, the jobless claims reading fell to its lowest level since the pandemic, which is encouraging but with an unemployment rate of 5.8%, it is still greatly higher than the pre-pandemic level of 3.5%.

The latest CPI reading jumped to 5%, but it is likely the Fed will reiterate its view that inflationary pressure will only be ‘transitory’. On the other hand, should the Fed say the US is rebounding at a faster rate than expected, that could ramp up the dollar and hurt stocks.

 Traders will get a good indication of demand in the US as the retail sales reading is due to be released. UK data will also be in focus as the latest CPI and retail sales updates will be announced too. The pound Sterling has been strong lately as many restrictions in the UK have been lifted thanks to Britain’s great vaccination scheme.

Trading Analysis for EUR/USD

ECB head K. Lagarde said in an interview with Politico that it is too early to discuss the end of the bond-buying program within the framework of the PEPP anti-crisis program.

Our Analysis:

While the price is above 1.1980, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 1.2098
• Take Profit 1: 1.2265
• Take Profit 2: 1.2350

Alternative scenario:

If the level 1.1980 is broken-down, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 1.1980
• Take Profit 1: 1.1880
• Take Profit 2: 1.1775

Trading Analysis for GBP/USD

Goldman Sachs analysts believe the Fed will not yet signal an imminent unwinding at this week's monetary policy meeting (June 15).

Our Analysis:

While the price is above 1.3970, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 1.4116
• Take Profit 1: 1.4240
• Take Profit 2: 1.4380

Alternative scenario:

If the level 1.3970 is broken-down, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 1.3970
• Take Profit 1: 1.3800
• Take Profit 2: 1.3670

Please do your analysis too, then confirm with our recommendation for this is not a trading signal.

Use our credited brokers for your investing activities. 

• Orbex.com
  
• FX Primus.com
  
• Grand Capital
  
• SuperForex
  
• FBS
  
• MogaFx
  
• IQ Options
  

To those who are starting or would wish to know how to trade, please check on the right side of this article and download the pdf books for free to kick start your investing careers.

Thank you for reading this article, we value presence. 

Have a wonderful and profitable week days ahead.