Market Drivers – US Session – Monday, June 27

Mohamed Abdelhamid 28 June, 2022 3:38 am Commodities, Forex Market, Global Stock Market, Market Update

Gold advanced at the beginning of the day, but finishes it in the red at around $1,824.00 per ounce. WTI, records a solid bounce after testing the 100-EMA on the downside near $105.88 a barrel near the daily low and got bolstered late, as OPEC+ cuts 2022 market surplus from 1.4 million bpd to 1 million. WTI trades at $109.90 after reaching a weekly high of around $110.22 per barrel.

Major currency pairs maintained a mixed performance and swinged between gains and losses but ultimately managed to hold to familiar levels. The US dollar is down against most of its rivals, but there was no technical breakout during the US session.

Economic Data

The data published, on monthly basis, by the National Association of Realtors showed on Monday that Pending Home Sales rose by 0.7% in May following April’s decline of 4%. This data came in better than the market expectation for a contraction of 3.7%. Despite this monthly increase, Pending Home Sales were down 13.6% on a yearly basis.

The data published, on monthly basis, by the National Association of Realtors showed on Monday that Pending Home Sales rose by 0.7% in May following April’s decline of 4%.

Earlier on Monday, Durable Goods Orders in the US increased by 0.7%, or by $1.9 billion, on a monthly basis in May to $267.2 billion, the monthly data published by the US Census Bureau revealed. Investors were expecting the data to remain unchanged.

Other Developments

Investors and traders are watching inflation and recession concerns, and central bankers get ready to take further action against inflation without hurting the economy. The market sentiment was generally positive at the weekly opening but soured after S&P downwardly reviewed economic growth.

Stock markets managed to hold on to positive territory in Europe and Asia, but Wall Street closed in the red. US government bond yields continue to edge up alongside market fears. The yield on the 10-year Treasury note peaked at 3.21%, now hovering nearby, up for the day.

The USD/CAD pair edged lower, now trading at around 1.2870, helped by higher crude oil prices, as WTI is now changing hands at $109.50 a barrel. AUD/USD, on the other hand, is under pressure, trading at around 0.6920.

The ECB hosts this week the Forum on Central Banking in Portugal. President Christine Lagarde offered the welcoming remarks. On Tuesday, several ECB members will be on the wires as per their participation in the forum, while leaders from around the world will speak on Wednesday.

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