June 10, 2021
USD/JPY: The USD/JPY started Thursday’s Asian session on a higher note. The pair has been trading around the local high for the last 6 days. Investors stay cautious about the rising inflation on the back of strong US economic data. The US economy is successfully coming out of the pandemic recession thanks to the vaccination programs and the government’s fiscal stimulus. On the other hand, the Japanese yen is facing a domestic economic submissive outlook. The yen suffers as global markets are looking forward to interest rates to be increased in almost every developed economy except Japan. On the contrary, deflation and crisis settings keep pressuring the yen’s performance, pushing traders to increase net long positions in the USD/JPY pair.
BUY 109.60/TP 111.00/SL 109.00
NZD/USD: NZD/USD sellers dominated yesterday as the US dollar broadly gained at the beginning of the US session. It keeps trading lower for the third day in a row during Thursday’s Asian session. The kiwi pair demonstrates sluggish market sentiment, also responding to the downbeat data and risk-off catalysts. However, a lack of major events in Asia and pre-US CPI caution can cause some concerns among the traders. US 10-year Treasury yields dropped to the two-month lows, supporting the US dollar, but the Wall Street benchmarks and S&P 500 Futures remain mixed. The same concerns commodities and oceanic currencies, including the NZD/USD pair. Based on the Asian economic calendar, which doesn’t have important news, NZD/USD traders should rely on risk catalysts and today’s US statistics for fresh impulses.
WTI: WTI pulled back from the recent highs affected by the EIA data published yesterday. We would like to remind you that oil showed growth when US Secretary said sanctions imposed on Iran are likely to remain in place even if a new nuclear deal is reached. However, it fell from almost 3 year highs yesterday due to a big rise in US gasoline inventories. The Energy Information Administration reported that US oil inventories fell by 5.2-million barrels last week, which is much higher than it was expected. However, the fact that Iran sanctions will remain in place should help bulls keep their dominationating positions near daily highs of $70 level. Additionally, the American Petroleum Institute on Tuesday reported that U.S. oil inventories fell by 2.1 million barrels last week.