Stocks firms on infrastructure deal, dollar lower, rates steady
Market sentiment remains positive following yesterday’s bipartisan infrastructure deal. Global stocks are up and the S&P opened higher, and set for its biggest weekly gain since April. This morning’s Personal Spending for May, which was lower than expected, and Personal Income, which was better than expected, effectively offset one another. Personal Consumption Expenditure (PCE) met expectations. Bank shares are higher after positive results in the Fed’s annual bank stress tests and speculation there will be significant bank dividends & buybacks. The dollar is broadly lower and US Treasury 10Yr yields steady at 1.49%. Oil and Gold prices are both firm, at $73.520 and $1788, respectively.
“Success is not final; failure is not fatal: It is the courage to continue that counts.”
June 25, 2021
EUR/USD 1.1971 GBP/USD 1.3925 USD/CAD 1.2279 AUD/USD 0.7609 USD/JPY 110.55 USD/CNH 6.4516 USD/ILS 3.2460 USD/MXN 19.7592 USD/CHF 0.9146 USD/INR 74.1888 USD/BRL 4.9030 USD/SGD 1.3406 USD/DKK 6.2124 USD/SEK 8.4488 USD/NOK 8.4615
USDThe dollar is broadly lower in risk-on sentiment following yesterday’s bipartisan infrastructure agreement. Once again, commodity currencies – MXN, NZD, NOK and AUD – were the top performers.GBP
The UK pound is barely changed, and one of the underperforming currencies in a broadly weak dollar environment. Traders are still mulling yesterday’s comments by the BOE that it will not be hiking rates until the economy shows it is recovering from the pandemic.EUR
The euro showed modest gains, as ECB policy makers said that the eurozone economy will grow this year and next, but not reach pre-pandemic levels until 2023. Investors may be concerned that the German-French/Merkel-Macron calls for the EU to begin talks with Russia’s Putin in a unusual public rebuke were rejected by other EU members.CAD
The Canadian dollar gained slightly overnight and in line with broad US dollar weakness. There are no major economic data releases for Canada today.ASIA/PACIFIC
The Japanese yen and the Chinese yuan gained little overnight and were in line with the dollar’s broad weakness. There were no economic data releases from either country today, although both report key economic stats next week.
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