US Market Review 14th June 2021

by Elina Nikolova

The Crude Oil Futures registered fresh yearly highs breaking the 70.00 a barrel psychological level. The price is now headed for the 72.00 area trading above the valid trendline formed from the November 2nd bottom. The price is also above the 50 Day Moving Average (MA50) which is sloping upwards coinciding with the valid uptrend line. The RSI is in bullish territory above the mid-50 level sloping upwards, and just above the oversold level of 70.
For the bulls, important resistance points ecxist at the 161.8% Fibonacci extension target at 74.63, also at the 76.90 high of October 4th 2018, and finally at the 84.05 low of November 7th 2012 that acts as an inside swing resistance level.
For the bears, important support levels exist at the 70.00 psychological level, also at 67.98 inside swing support from the top of March 8th 2021, and finally at 65.00 where the valid uptrend line lies with the MA50 coinciding.

• It’s a quiet day ahead on the economic calendar. Later today, CAD Manufacturing Sales m/m are due, as well as possible comments from Fed officials that could cause volatility sparks.

• U.S. stocks closed modestly higher at the end of a torpid week marked with few market-moving catalysts and persistent concerns over whether current inflation spikes could linger and cause the U.S. Federal Reserve to tighten its dovish policy sooner than expected.
The Dow Jones Industrial Average rose 13.36 points, or 0.04%, to 34,479.6, the S&P 500 gained 8.26 points, or 0.19%, to 4,247.44 and the Nasdaq Composite added 49.09 points, or 0.35%, to 14,069.42.

• The Consumer Sentiment Index in the US improved to 86.4 (preliminary) in June from 82.9 in May, the University of Michigan's latest Surveys of Consumers showed on Friday. This reading came in better than the market expectation of 84 by a wide margin. Further details of the publication revealed that the Current Economic Conditions Index edged higher to 90.6 from 89.4 and the Consumer Expectations Index rose to 83.8 from 78.8.

• Oil prices reached fresh multi-year highs on Friday, closing out a third straight week of gains on an improved outlook for worldwide demand as rising COVID-19 vaccination rates help lift pandemic curbs.
Brent crude futures settled at $72.69 a barrel, rising 17 cents after reaching their highest since May 2019. For the week, Brent was up 1%.

• As the week rolled to a close, an all-too familiar pattern reinforced itself on those who still cared to call gold a hedge against inflation — which it clearly was not, given its inability to respond to America’s worst concerns about price pressures in more than a decade.
The front-month gold futures contract on New York’s Comex settled at $1,879.60 per ounce, down $16.80, or 0.9%. For the week, it was down $12.40 or 0.7%.

• Group of Seven leaders were trying to resolve differences over a proposal to reallocate $100 billion from the International Monetary Fund's warchest to help countries struggling to cope with the COVID-19 crisis.
An almost final version of the G7 communique seen by Reuters showed Germany and Italy had yet to back the inclusion of the $100 billion figure in the final statement by leaders.

• At 12:30 (GMT) CAD Manufacturing Sales m/m figure is due. This measures the Change in the total value of sales made by manufacturers. It's a leading indicator of economic health - manufacturers are quickly affected by market conditions, and changes in their sales can be an early signal of future activity such as spending, hiring, and investment.

US Indices yesterday:

• Dow Jones +0.04%
• S&P 500 +0.19%
• Nasdaq +0.35%

Sources: Investing.com, forexfactory.com