Market Watch Today

Market Overview

Yesterday, FED Chairman Powell addressed the potential for rate cuts, citing the need for more data to ensure that recent weaker inflation readings accurately reflect underlying price pressures. This comes after data revealed persistently tight labor markets, increasing the likelihood of rate cuts this September.

On Tuesday, the Labor Department reported a rise in job openings by 221,000 to 8.140 million as of the last day of May. This is the lowest level since February 2021 but slightly above Wall Street expectations.

Additionally, Monday's data showed a contraction in the ISM Manufacturing PMI, dropping 20 basis points from last months 48.7 to 48.5, falling short of the expected 49.2.

Powell's dovish comments led to a dip in U.S. Treasury notes and a weaker dollar, while global stock exchanges saw gains. The yield on benchmark U.S. 10-year notes fell by 4.9 basis points to 4.43%.

The Dow Jones Industrial Average rose by 0.41% to 39,331.85, the S&P 500 gained 0.62% to 5,509.01, and the Nasdaq Composite advanced by 0.84% to 18,028.76.

Further U.S. news is expected later for Payrolls, Unemployment claims, and Services PMI. This week, we will also see FOMC Meeting Minutes, Hourly Earnings, Employment change, and Unemployment rate, all of which will impact market expectations for a rate cut.

According to the CME FedWatch Tool, traders are currently pricing in about a 67% chance of a Fed rate cut in September.GoldThe gold market remains relatively stable, with prices settling at 2332.174. Our analysis remains unchanged from yesterday as we await further price action. Given Powells comments suggesting potential rate cuts, the metals market might gain momentum and move bullishly.

SilverSilver is gradually increasing towards 29.900. We are monitoring the situation as more data becomes available.

DXY (Dollar Index)The dollar has fallen to trade below 105.840. Despite Powell‘s dovish comments, the price hasn’t moved dramatically. However, we may see a continued decline as bearish market prospects increase.

GBP/USDThe pound has strengthened against the dollar, bouncing off the anchor point at 1.26487. A bullish trend may continue if dovish data persists.

AUD/USDThe AUD has found support at 0.66541 and is attempting to move higher. However, there isnt sufficient momentum to sustain this movement, so we remain watchful.

NZD/USDNZD is trading below 0.60954 but has recovered after failing to reach 0.60455. A return to trading above 0.60847 is possible, but we need to see how the price develops.

EUR/USDEUR has recovered since last month's trading session and is consolidating between 1.07637 and 1.027240. We continue to monitor the price movement.

USD/JPYThe yen remains stagnant around 161.700 following Powells comments. However, a rising trend is observed due to the yen's actual weakness.

USD/CHFThe CHF continues to weaken, influenced by last month's rate cuts. A slight market reaction occurred following Powells dovish comments. We will keep observing the price, expecting a possible continuation of the uptrend.

USD/CADUSD/CAD is consolidating between 1.37435 and 1.36612. The CAD rebounded following Powells comments. We might see the CAD gaining strength in the coming months as the BoC evaluates data before deciding on rate cuts. Depending on the economic performance, the BoC may hold off on cutting rates.