News

Dollar Firms Ahead of Data, Stock Futures Tick Higher

USD

The dollar index which measures the greenback against a basket of major currencies inched higher to 90.08, trying to regain yesterday's rally ahead of key data. The Beige book indicated the impact of a strong vaccination rollout on the economic recovery while signaling for higher price pressures due to supply chain disruption and higher input costs. US corporations are increasing wages and signing bonuses to attract and retain workers that are benefiting from the unemployment schemes. On the other hand, investors are looking forward to the ISM Non-manufacturing PMI for May and the jobs report to gain more insight into the economic recovery. The EURUSD dipped to $1.2186, the AUDUSD declined to $0.7723, and the USDJPY rallied to 109.81.

Equities

Futures tied to major US stock indices edged higher but the momentum remained in check. Investors are looking for fresh drivers which could push indices to another all-time higher, but also, they aren't willing to take risks ahead of key economic data. The ISM non-manufacturing and jobs data this week, and the Consumer Price Index for May during the next week. Meanwhile, the Reddit trading frenzy is back on the stage, with AMC and the likes soaring yesterday. The Dow Jones Industrial Average futures rose to 34637, the SPX500 futures rallied to 4212, and Nasdaq futures hovered near 13700.

Metals

Precious metals prices drifted lower amid increased caution from investors ahead of key data. The price of a gold ounce dipped to $1895, the price of a silver ounce eased to $27.85, and palladium held steady near $2850.

Oil

Oil prices extended upside rally supported by OPEC+ discipline. Top oil producers are going forward with their plan to add output but gradually to avoid any headwinds. Meanwhile, the American Petroleum Institute reported a drop in oil stock by 5.360 million barrels. The US Energy Information Administration will report the official figures today. On the other hand, an EU official announced progress in the nuclear deal negotiation, where if confirmed with a deal, could put some pressure on the upside rally. The West Texas Intermediate Crude July contract rose to $69.37, and the Brent blend August contract rallied to $71.97.

Major Economic Events

GMT Country Event Expectation Previous

8:00

EZ

 Services PMI (May)

55.1

60.5

8:30

UK

 Services PMI (May) 

61.8

61.8

12:15

US

 ADP Nonfarm Employment Change (May)

650

742

12:30

US

 Initial Jobless Claims

390

406

14:00

US

 ISM Non-Manufacturing PMI (May)

63.0

62.7

15:00

US

 Crude Oil Inventories

-2.443

-1.662

 

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