Major US stock-index futures remained firm as investors consider that the worst may be over for the United States economy. The retail sales jumped 17.7% in May, beating expectations of 8.0%, and the prior reading was revised to -14.7% from -16.4%. Still, the risk appetite was checked with a couple of headlines, among them, rising coronavirus cases in different states, and Powell's declaration that the Federal Reserve could taper the corporate bond-buying program if economic activity picks up fast. Stock benchmarks moved south, erasing partial gains, but lastly managed to inch higher again. During the Asian session, the Dow Jones Industrial Average futures rose to 26534, the S&P500 futures rallied to 3151, and Nasdaq futures jumped to 10037.
The dollar index, which measures the greenback against a basket of major currencies, rebounded to 97.25, supported by strong economic figures, and Powell's testimony. The Retail Sales came in well above estimates, signaling that the economic activity is recovering rapidly. On the other hand, during his semi-annual monetary policy testimony, Fed's Powell stated that the Federal Reserve could taper its bond-buying program if market function continued to improve. Lately, the dollar was getting hammered on increased prospects of further stimulus. However, yesterday's developments may have something else to say. The EURUSD dipped to $1.1254, the GBPUSD declined to $1.2541, and the AUDUSD dropped to $0.6851.
Precious metal prices eased slightly as the dollar regained strength. The price of a gold ounce fell to $17.21, the price of a silver ounce held steady near $17.45, and palladium futures hovered around $1930.
Oil prices inched higher, ignoring the inventory buildup. Two main factors were after the move higher. The International Energy Agency raised its oil demand forecast for 2020 to 91.7 million barrels, and the US retail sales were significantly higher in May, signaling rapid economic recovery. On the other hand, the American Petroleum Institute reported that the oil stock rose by 3.9 million barrels. Market participants are looking forward to the official figures by the US Energy Information Administration later today. The West Texas Intermediate July delivery rose to $38.35, and Brent futures rallied to $41.10.
Major Economic Events
|9:00||EZ||CPI (MoM) (May)||-0.1%||0.3%|
|12:30||US||Building Permits (May)||1.225||1.066|
|12:30||US||Housing Starts (May)||1.09||0.891|
|12:30||CA||CPI (MoM) (May)||0.7%||-0.7%|
|14:30||US||Crude Oil Inventories||-1.738||5.720|
|16:00||US||Fed Chair Powell Testifies||-||-|
|22:45||NZ||GDP (QoQ) (Q1)||-1.0%||0.5%|
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