What to Trade on June 6-10?
Last week was full of economic events, from the Canadian bank rate and OPEC meeting to US Non-farm employment change. The US Fed is speeding up its monetary tightening, and crypto may experience the most challenging times since the beginning of the market. Commodities are in danger, too. Dive deeper into the most important events of next week!
Forex
The ECB will meet on the main refinancing rate (interest rate) on Thursday, 14:45 GMT+3. The six members of the ECB Executive Board and 15 of the 19 governors of the Euro area central banks vote on where to set the rate. Despite the common knowledge that the rate will remain unchanged, ECB will hold a press conference after the monetary policy statement. We will look at plans to fight inflation in the EU. EURUSD will gain volatility and may break through the vital resistance area of 1.0760-1.0800. In case of a breakout, the next resistance for the pair will be at 1.1030.
Oil & Gold
EU leaders had agreed to ban 90% of Russian crude by the end of the year as part of the bloc’s sixth sanctions package on Russia since it invaded Ukraine. Later, Saudi Arabia reported it could step up if Russian output dips under sanctions. Oil didn’t have enough momentum to exit the three-month consolidation with borders at $90-120 per barrel. Still, the outlook for XBRUSD is bullish due to difficulties in switching from Russian imports.
Gold oscillates near the vital support area of $1790-1800. The slide below will mean the bull market for XAUUSD is postponed for several months, and the USD may strengthen simultaneously. However, the greenback prospects are gloomy amid inflation that doesn't slow down fast enough.
Stocks
Take a closer look at the HK50 index. The Chinese economy is recovering from lockdowns and supply disruptions so we can expect some bullish movements in the nearest time. Step by step, the country takes control over microchip production as the settlements with Taiwan suppliers are now partly managed by China. Also, HK50 is close to the strong resistance trendline, which is the final threshold on the way to the uptrend.