Morning Brew June 11 2021

Erik Schafhauser

Senior Relationship Manager

Good Morning

Despite very high inflation yesterday the reaction was extremely muted as traders bought the narrative that the rise was “transiatory” and not fundamental. US 10 year yields actually fell to 1.43, pushing the USD Index to just below 90. The main price drivers were air fares at 7% Motor Vehicles t 4% and commodities at 1.1%.

The ECB Conference was basically a non-event.

EURUSD was calm, GBPUSD could gain to 1.4182, Gold and Silver rise to 1900 and 28.08. Emerging Markets currencies can gain against the USD.

There was less movement in Equities than I had expected with the Dow up 0.06%, the S&P 0.47% and the Nasdaq 0.78% but the S&P 500 closed at an all time high at 4239. Most economists polled by Reuters believe the Fed will announce a tapering strategy either at the Jackson Hole conference (26%) or the September meeting (32%) and to take effect in 2022 (58%).

GameStop dropped 27.2% after the videogame retailer said it may sell new shares

With the calendar being somewhat thin today, news from the G7 could move the markets.

Safe Trading

Local Start Date

Local Time

Country/Region

Indicator Name

Period

Reuters Poll

Actual

Unit

11 Jun 2021

08:00

United Kingdom

GDP Est 3M/3M

Apr

1.6%

Percent

11 Jun 2021

08:00

United Kingdom

GDP Estimate MM

Apr

2.4%

Percent

11 Jun 2021

08:00

United Kingdom

GDP Estimate YY

Apr

27.9%

Percent

11 Jun 2021

08:00

United Kingdom

Manufacturing Output MM

Apr

1.5%

Percent

11 Jun 2021

16:00

United States

U Mich Sentiment Prelim

Jun

84.0

Index

14 Jun 2021

09:00

Turkey

Current Account Balance

Apr

USD

(Refinitiv)

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