Morning Brew June 20 2022
Senior Relationship Manager
After an extremely volatile week, the one ahead only holds a limited amount of key data. Today and tomorrow the calendar is basically empty after the German PPI came as high as expected, Wednesday UK and Canadian Inflation data and international PMI on Thursday will be closely watched before we will receive UK retail Sales on Friday, as well as the IFO from Germany and the University of Michigan. Rate decisions are expected out of the Czech republic and Turkey.
Key will be the sentiment after the massive moves and policy adjustments last week. As central Banks are raising rates, growth is slowing down and the S&P is in a confirmed downtrend at 23% off the high. International growth worries due to rising rates weigh on commodity prices and equities, the fact that China is likely to maintain corona lockdowns for the remainder of the year is also likely weigh on demand – possibly making for good entry points.
Over night, Indexes trade fairly calm and in the FX market the USD gives up a little ground. The GER40 trades at 13178, the US 500 at 3688 and the USTech 100 at 11341.
The USD Index retreats to 104.40, EURUSD 1.0540, Cable 1.2245 and USDJPY 134.80. Gold and Silver rise a little but remain rangebound at 1844 and 21.70.
Bitcoin is stuck near the 20.000 in nervous trading.
With little in terms of data, I would expect the week to be news driven with comments out of central banks and Analysts being closely watched, also any fallout from the market jumps will be closely watched. Trading is likely to be jumpy as traders and investors are looking for clues if we have reached the bottom or if the risk off moves continue.