Stocks Mixed After Weaker-Than-Expected Retail Sales Report

Market Shows Little Reaction To Retail Sales Report As Traders Stay Focused On Fed

U.S. has just provided Retail Sales report for May. Retail Sales decreased by 1.3% month-over-month in May compared to analyst consensus which called for a decline of 0.8%.

On a year-over-year basis, Retail Sales grew by 28.1% as they were under significant pressure in May 2020. Excluding Autos, Retail Sales decreased by 0.7%.

S&P 500 futures are mostly flat after the release of the Retail Sales report. The report missed analyst estimates, but the market remains focused on the Fed Interest Rate Decision which will be released on Wednesday, and it looks that it is not ready for big moves.

Producer Prices Grew By 0.8% In May

U.S. has also released Producer Prices reports for May. On a month-over-month basis, Producer Prices increased by 0.8% compared to analyst consensus of 0.6%. Year-over-year, Producer Prices grew by 6.6% compared to analyst consensus which called for growth of 6.3%.

Inflation is clearly rising faster than expected, but the key question is whether Fed will do anything about it, or it will remain committed to its dovish stance. If Fed is more hawkish than expected on Wednesday, stocks may find themselves under pressure.

Today, traders will also have a chance to take a look at Industrial Production  and Manufacturing Production reports. Analysts expect that Industrial Production increased by 0.6% month-over-month in May while Manufacturing Production also grew by 0.6%.

WTI Oil Moves To New Highs

WTI oil is currently trying to settle above the $72 level as rally continues. From the technical point of view, RSI has recently moved to the overbought territory so the risks of a pullback are increasing, but traders stay focused on the rebound of demand for oil.

In addition, it looks that there is little progress in negotiations with Iran. At this point, the oil market is not worried about the potential return of Iranian oil, and WTI oil looks ready to get to the test of the psychologically important $75 level.

For a look at all of today’s economic events, check out our economic calendar.

Shiba Inu Tests Key Resistance At $0.000007

Shiba Inu Gains Ground As Bitcoin Tests Resistance At $40,000

Shiba Inu is currently trying to settle back above the key resistance level at $0.000007 while Bitcoin is testing the major resistance at $40,000, which is bullish for crypto markets.

Other cryptocurrencies are also moving higher. Ethereum managed to settle above $2,500 and is testing the resistance at the 50 EMA at $2,620. Meanwhile, Dogecoin is slowly moving towards the resistance at its 50 EMA at $0.3435.

The lack of momentum in Dogecoin has put some pressure on Shiba Inu in recent weeks. However, it looks that Dogecoin managed to find material support near $0.30 and may try to develop additional upside momentum which will be bullish for Shiba Inu.

Technical Analysis

shiba inu june 15 2021

Shiba Inu has recently received support at $0.0000055 and managed to gain upside momentum. Currently, Shiba Inu is trying to settle above the major resistance level at $0.000007 which has previously served as support. A move above this level will show that Shiba Inu managed to recover from the recent sell-off and is ready to develop additional upside momentum.

In this case, Shiba Inu will move towards the next resistance level at $0.000008.  A successful test of this resistance level will open the way to the test of the resistance which is located at $0.000010. In case Shiba Inu manages to settle above the resistance at $0.000010, it will head towards the next resistance level at $0.000012.

On the support side, Shiba Inu needs to stay below $0.000007 to have a chance to develop downside momentum in the near term. The next support level for Shiba Inu is located at $0.0000063. If Shiba Inu declines below this level, it will head towards the next support at the recent lows at $0.0000055. A successful test of the support at $0.0000055 will open the way to the test of the support at $0.0000044. There are no important levels between $0.0000044 and $0.0000055 so this move may be fast.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Daily Forecast – U.S. Dollar Continues To Lose Ground Against Euro

Euro Is Moving Higher Against U.S. Dollar

EUR/USD is currently trying to settle back above the resistance at 1.2130 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get below 90.50 and is moving towards the support level at 90.30. In case the U.S. Dollar Index gets to the test of the support at 90.30, EUR/USD will get more support.

Today, foreign exchange market traders had a chance to take a look at the final reading of inflation report from Germany. Inflation Rate increased by 0.5% month-over-month in May. On a year-over-year basis, Inflation Rate grew by 2.5%.

Germany’s inflation report was in line with the analyst consensus, and traders’ focus will soon shift to economic data from the U.S. Producer Prices are projected to grow by 6.3% on a year-over-year basis, but it remains to be seen whether markets will worry about higher inflation.

The yield of 10-year Treasuries has recently made an attempt to settle above 1.50% but failed to gain sufficient upside momentum and pulled back. A move above 1.50% will open the way to the test of the 20 EMA at 1.55% which will be bullish for the U.S. dollar, but traders will likely wait for the Fed Interest Rate Decision on Wednesday before making big moves.

Technical Analysis

eur usd june 15 2021

EUR/USD is currently testing the resistance at 1.2130. In case this test is successful, EUR/USD will move towards the next resistance level which is located at the 20 EMA at 1.2155.

A move above the 20 EMA will push EUR/USD towards the resistance at 1.2175. If EUR/USD manages to settle above this level, it will head towards the resistance at 1.2200.

On the support side, EUR/USD needs to get back below 1.2130 to have a chance to develop downside momentum in the near term. The next support level is located at 1.2115. It should be noted that the 50 EMA is in the nearby, so EUR/USD may get material support in the 1.2115 – 1.2130 range. If EUR/USD declines below the support at 1.2115, it will move towards the next support level at 1.2080.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Daily Forecast – British Pound Stays In The Previous Trading Range

British Pound Attempts To Rebound Against U.S. Dollar

GBP/USD is currently trying to get back above the 20 EMA near 1.4130 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made another attempt to settle above the 50 EMA at 90.60 but failed to develop sufficient upside momentum and declined towards 90.50. In case the U.S. Dollar Index manages to settle above the 50 EMA, it will move towards the resistance at 90.90 which will be bearish for GBP/USD.

UK has just released Claimant Count Change report for May which indicated that the number of people claiming unemployment benefits declined by 92,600 compared to analyst consensus which called for a decline of 62,000. Unemployment Rate report showed that Unemployment Rate decreased from 4.8% in March to 4.7% in May, in line with the analyst consensus.

Today, foreign exchange market traders will also have a chance to take a look at economic reports from the U.S. Analysts expect that Retail Sales declined by 0.7% month-over-month in May. Producer Prices are expected to grow by 0.6% on a month-over-month basis. Industrial Production is projected to increase by 0.6% month-over-month in May, while Manufacturing Production is expected to grow by 0.5%.

It remains to be seen whether these reports will trigger big moves as traders may stay focused on Fed Interest Rate Decision which will be released on Wednesday.

Technical Analysis

gbp usd june 15 2021

GBP/USD failed to settle below the support at 1.4080 and rebounded towards the 20 EMA at 1.4130. In case GBP/USD manages to settle above the 20 EMA, it will move towards the next resistance at 1.4150.

A successful test of the resistance at 1.4150 will open the way to the test of the resistance at 1.4180. In case GBP/USD gets above this level, it will move towards the next resistance at 1.4200.

On the support side, the nearest support level for GBP/USD is located at 1.4100. If GBP/USD gets below this level, it will head towards the next support at 1.4080. A move below this level will push GBP/USD towards the 50 EMA at 1.4065. In case GBP/USD declines below the 50 EMA, it will head towards the support at 1.4050.

For a look at all of today’s economic events, check out our economic calendar.

USD/CAD Daily Forecast – Canadian Dollar Starts The Week On A Strong Note

U.S. Dollar Is Losing Ground Against Canadian Dollar

USD/CAD is currently trying to settle back below the support at 1.2130 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index did not manage to settle above the 50 EMA at 90.60 and moved below 90.50. The nearest support level for the U.S. Dollar Index is located at 90.30. If the U.S. Dollar Index gets to the test of this level, USD/CAD will find itself under more pressure.

Today, Canada reported that Manufacturing Sales declined by 2.1% month-over-month in April compared to analyst consensus which called for a decline of 1.1%. New Motor Vehicle Sales totaled 167,000 in April, mostly in line with the analyst forecast of 170,000.

These reports had little impact on USD/CAD as foreign exchange market traders wait for Retail Sales data from the U.S., which will be published on Tuesday, and Fed Interest Rate Decision, which will be released on Wednesday.

The key question is whether Fed will be less dovish as recent data suggests that inflation is rising faster than previously expected while the economic growth is strong. Any hawkish words from Fed may provide significant support to the American currency, although it remains to be seen whether Fed is ready to change its tone.

Technical Analysis

usd cad june 14 2021

USD to CAD failed to settle above the resistance at 1.2170 and is testing the support at 1.2130. In case this test is successful, USD to CAD will move towards the next support which is located at the 20 EMA at 1.2115.

A move below the 20 EMA will push USD to CAD towards the next support at 1.2100. If USD to CAD declines below this level, it will head towards the support at 1.2080.

On the upside, the nearest resistance level for USD to CAD is located at 1.2170. If USD to CAD manages to settle above this level, it will head towards the next resistance at the 50 EMA at 1.2200. A move above 1.2200 will push USD to CAD towards the resistance at 1.2250.

For a look at all of today’s economic events, check out our economic calendar.

Why BP Stock Is Trading At Yearly Highs

BP Stock Gains Ground As Oil Moves To New Highs

Shares of BP gained strong upside momentum and moved to yearly highs as oil continued to move towards the $75 level.

This year, oil majors faced skepticism from analysts due to pressure from environmental activists and governments around the world. However, BP stock is up by almost 40% this year, and shares of other oil majors are also moving higher.

The rally in the oil market served as the main catalyst for BP, but cheap valuation also played an important role.

Aanalysts expect that BP will report earnings of $2.67 per share this year and $2.92 per share in 2022. At current price levels, the stock is trading at less than 10 forward P/E for 2022 which is cheap for the current market environment.

In fact, BP is trading at a discount to peers like Chevron and Exxon Mobil, which serves an additional bullish catalyst for the company’s shares.

What’s Next For BP Stock?

In the near term, dynamics of BP shares will depend on the fluctuations of the oil market. Oil gained strong upside momentum in recent weeks, which is bullish for oil-related stocks, including BP.

It should be noted that earnings estimates for BP have been moving higher together with the price of oil, and this trend may be continued in the next few weeks since estimates typically lag market developments.

At less than 10 forward P/E for 2022, the stock looks really cheap. Unlike its American peers like Exxon Mobil and Chevron, BP stock is still well below pre-pandemic levels, and there is plenty of work to do to close the gap.

At this point, it looks that it will be hard for traders and investors to ignore cheap oil majors despite risks of the energy transition. In this light, BP stock has decent chances to continue its current upside move.

For a look at all of today’s economic events, check out our economic calendar.

Silver Price Daily Forecast – Key Support At $27.50 Stays Strong

Silver Continues To Trade In The $27.50- $28.30 Range

Silver has recently made another attempt to settle below the key support level at $27.50 but failed to develop sufficient downside momentum and rebounded closer to the resistance at $28.00 while the U.S. dollar declined against a broad basket of currencies.

The U.S. Dollar Index made an attempt to settle above the 50 EMA at 90.60 but lost momentum and pulled back below the support at 90.50. The next material support level for the U.S. Dollar Index is located at 90.30. A move below this level will open the way to the test of the 20 EMA at 90.20 which will be bullish for silver and gold price today.

Gold settled below the 20 EMA at $1875 and tried to get to the test of the 50 EMA at $1840. Gold received material support near the 50 EMA and rebounded towards $1865, but the recent sell-off looks worrisome for gold and silver bulls.

Meanwhile, gold/silver ratio managed to get below the 67 level and is moving towards the support at 66.50 which is bullish for silver.

Technical Analysis

silver june 14 2021

Silver failed to settle below the support at $27.50 and rebounded towards the resistance at $28.00. In case silver manages to settle above this level, it will head towards the next resistance which is located at the high of the current trading range at $28.30. A successful test of the resistance at $28.30 will push silver towards the next resistance at $28.90.

On the support side, silver needs to get below the 20 EMA at $27.70 to have a chance to get to another test of the major support level at $27.50. This support level has already been tested many times and proved its strength.

In case silver settles below the support at $27.50, it will move towards the next support at the 50 EMA at $27.15. A move below the 50 EMA will open the way to the test of the support at $27.00.

For a look at all of today’s economic events, check out our economic calendar.

Stocks Mixed At The Beginning Of The Week

Traders Wait For Additional Catalysts

S&P 500 futures are mostly flat in premarket trading as traders wait for key catalysts that will be released later this week.

There are no important economic reports scheduled to be released today, and traders will have to wait until Tuesday to see the important Retail Sales data for May. Analysts expect that Retail Sales declined by 0.7% on a month-over-month basis.

Traders will also have a chance to take a look at Producer Prices data for May. Producer Prices are expected to grow by 6.3% year-over-year in May, but it remains to be seen whether the market will be impressed by these numbers since it has successfully ignored the recent increase of Inflation Rate.

On Wednesday, market’s focus will shift to Fed Interest Rate Decision and the subsequent commentary. This Fed meeting is especially important since the Fed will release FOMC Economic Projections which will likely have a material impact on markets.

WTI Oil Is Moving Towards The $72 Level

WTI oil continues to move higher as traders remain focused on the rebound of oil demand. The recent data from U.S. airlines suggests that demand continues to rise which is bullish for oil.

Interestingly, energy-related stocks failed to gain sufficient upside momentum in recent trading sessions, but the continuation of oil rally will likely push them to higher levels.

Precious Metals Decline At The Start Of The Week

Gold declined below the 20 EMA at $1875 and gained strong downside momentum. Currently, it is trying to get to the test of the 50 EMA which is located at $1840. Silver also found itself under significant pressure and is testing the major support level at $27.50.

It looks that precious metals traders were surprised by the recent strength of the U.S. dollar. U.S. dollar is flat against a broad basket of currencies today, but the U.S. Dollar Index has recently failed to settle below the psychologically important support level at 90 which served as a material bearish catalyst for gold and silver. In this light, gold mining stocks and silver mining stocks will find themselves under pressure at the start of the week.

For a look at all of today’s economic events, check out our economic calendar.

Bitcoin Is Back To The Key Resistance Level At $40,000

Bitcoin Moves Higher At The Start Of The Week

Bitcoin gained additional upside momentum and moved closer to the key resistance level at $40,000 after Elon Musk stated that Tesla would allow customers to use Bitcoin as payment for the company’s cars after Bitcoin miners’ usage of clean energy increases to 50%.

Musk also added that Tesla sold just about 10% of its Bitcoin holdings, which served as an additional bullish catalyst as some traders were worried that Tesla was decreasing its position in Bitcoin.

The second largest cryptocurrency, Ethereum, is also moving higher. Currently, it is trying to settle above the $2,500 level. Dogecoin is mostly flat, and it looks that Bitcoin’s recent upside move was not bullish for all cryptocurrencies.

In fact, Bitcoin Dominance, which measures the market capitalization of Bitcoin as a percentage of total crypto market capitalization, is currently trying to settle above the 20 EMA at 45.75%. A move above this level will indicate that interest in Bitcoin is rising.

Technical Analysis

bitcoin june 14 2021

Bitcoin managed to get back above the 20 EMA near $38,000 and is trying to settle above the key resistance level at $40,000. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If Bitcoin manages to settle above the key resistance at $40,000, it will head towards the next resistance level which is located near the 50 EMA at $42,000. A successful test of the resistance at the 50 EMA will open the way to the test of the next resistance at $44,000. In case Bitcoin gets above $44,000, it will head towards the resistance level which is located at $46,000.

On the support side, the previous resistance level at the 20 EMA near $38,000 will serve as the first support level for Bitcoin. A successful test of the support at the 20 EMA will push Bitcoin towards the next support level at $37,000. If Bitcoin settles below this level, it will head towards the next support at $35,000.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Daily Forecast – U.S. Dollar Stays Strong Against Euro

Euro Is Flat Against U.S. Dollar

EUR/USD managed to get below the 50 EMA at 1.2120 and is trying to settle below 1.2100 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the 50 EMA at 90.60 but failed to develop sufficient upside momentum and pulled back towards 90.50. If the U.S. Dollar Index declines below 90.50, it will move towards the support at 90.30 which will be bullish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at Euro Area Industrial Production report for April. Analysts expect that Euro Area Industrial Production increased by 0.4% month-over-month in April after growing by 0.1% in March. On a year-over-year basis, Euro Area Industrial Production is projected to increase by 37.4% as it was under huge pressure in April 2020.

It remains to be seen whether the U.S. dollar will be able to gain significant momentum ahead of the Fed Interest Rate Decision, which will be released on Wednesday. However, U.S. Retail Sales, Industrial Production, Manufacturing Production and Producer Prices reports, which will be published on Tuesday, may serve as sufficient catalysts for significant moves.

Technical Analysis

eur usd june 14 2021

EUR/USD is currently trying to get below 1.2100. In case this attempt is successful, it will head towards the support level which is located at 1.2080.

A successful test of the support at 1.2080 will open the way to the test of the next support level at 1.2060. If EUR/USD gets below this level, it will move towards the support at 1.2040.

On the upside, the nearest resistance level for EUR/USD is located at the 50 EMA at 1.2120. If EUR/USD gets above this level, it will get to the test of the next resistance at 1.2130.

In case EUR/USD manages to settle above the resistance at 1.2130, it will move towards the next resistance at 1.2155. A move above the resistance at 1.2155 will open the way to the test of the resistance at 1.2175.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Daily Forecast – British Pound Is Mostly Flat Against U.S. Dollar At The Start Of The Week

U.S. Dollar Tries To Gain More Ground Against British Pound

GBP/USD continues its attempts to settle below the support at 1.4100 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index is currently testing the resistance at the 50 EMA at 90.60. In case this test is successful, the U.S. Dollar Index will move towards the resistance at 90.90 which will be bearish for GBP/USD.

There are no important economic reports scheduled to be released in the U.S. and UK today so foreign exchange market traders will focus on general market sentiment and the dynamics of U.S. government bond markets.

Treasury yields are currently located near multi-month lows, but they try to gain some upside momentum. If Treasury yields manage to move higher, U.S. dollar may get more support.

It should be noted that markets have ignored inflation fears in recent trading sessions despite worrisome inflation data from the U.S. However, the situation may change quickly if traders decide that inflation is rising fast. This scenario will likely be bullish for the American currency.

Technical Analysis

gbp usd june 14 2021

GBP/USD is currently trying to settle below the nearest support level at 1.4100. In case this attempt is successful, GBP/USD will move towards the next support which is located at 1.4080.

A move below this level will present a serious problem for GBP/USD bulls as it will indicate that GBP/USD is ready to get out of the current trading range and develop additional downside momentum.

If GBP/USD declines below the support at 1.4080, it will head towards the next support at the 50 EMA at 1.4065. A successful test of this level will open the way to the test of the support at 1.4050.

On the upside, the nearest resistance level for GBP/USD is located at the 20 EMA at 1.4130. If GBP/USD gets above the 20 EMA, it will move towards the next resistance at 1.4150. A move above this level will push GBP/USD towards the resistance at 1.4180.

For a look at all of today’s economic events, check out our economic calendar.

USD/CAD Daily Forecast – Canadian Dollar Is Under Pressure Ahead Of The Weekend

U.S. Dollar Moves Higher Against Canadian Dollar

USD/CAD is currently trying to get to the test of the resistance at 1.2170 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index gained strong upside momentum and is currently testing the resistance at 90.50. If the U.S. Dollar Index moves above this level, it will get to the test of the 50 EMA at 90.60. A move above the 50 EMA will open the way to the test of the resistance at 90.90 which will be bullish for USD/CAD.

Today, U.S. reported that Consumer Sentiment increased from 82.9 in May to 86.4 in June compared to analyst consensus of 84. The stronger-than-expected Consumer Sentiment report provided additional support to the American currency.

Treasury yields have managed to rebound from recent lows, but it remains to be seen whether they will be able to gain upside momentum. At this point, it looks that traders remain confident that current inflation is temporary. If Treasury yields continue their recent downside trend, the U.S. dollar may find itself under more pressure.

Technical Analysis

usd cad june 11 2021

USD to CAD managed to get above the resistance at 1.2130 and is moving towards the next resistance level which is located at 1.2170. In case USD to CAD manages to settle above this level, it will head towards the next resistance at 1.2200.

A successful test of the resistance at 1.2200 will push USD to CAD towards the next resistance at 1.2250. No important levels were formed between 1.2200 and 1.2250 so this move may be fast.

On the support side, USD to CAD needs to get back below 1.2130 to have a chance to develop downside momentum in the near term. The next support level is located at the 20 EMA at 1.2105.

If USD to CAD settles below the 20 EMA, it will head towards the next support at 1.2080. A successful test of the support at 1.2080 will open the way to the test of the support level at 1.2065.

For a look at all of today’s economic events, check out our economic calendar.

Why Philip Morris Stock Is Trading Close To Multi-Year Highs

Philip Morris Stock Moves Higher After The Company Reveals A New Buyback Program

Shares of Philip Morris opened with a gap up and made an attempt to settle above multi-year highs after the company announced a new three-year share repurchase program of up to $7 billion.

Philip Morris expects to spend $5 billion – $7 billion on this program over the next three years. Meanwhile, the quarterly dividend remained intact at $1.20 per share. At current stock price levels, Philip Morris yields about 4.9% and remains attractive for yield-oriented investors.

Previously, the company reaffirmed its 2021 full-year outlook. This year, Philip Morris expects to report adjusted diluted earnings of $5.95 – $6.05 per share, so the stock is currently trading at about 16 forward P/E for 2021.

For the next year, analysts expect that Philip Morris will report earnings of $6.71 per share. It should be noted that analyst estimates have been moving higher in recent weeks which is bullish for the stock.

What’s Next For Philip Morris Stock?

Treasury yields have moved lower in recent trading sessions which is bullish for dividend stocks like Philip Morris. While investors are sometimes concerned about the future of tobacco companies, the reasonable valuation and decent yields continue to attract those investors who search for good deals in the current market environment.

The stock is currently trading near multi-year highs, but it looks that there is plenty of room to gain additional upside momentum, especially in case inflation fears continue to decrease.

Analyst estimates call for solid earnings growth in 2022, which is good for the company of this size. Philip Morris will report its second-quarter results on July 20, 2021, so traders will have to wait for more than a month for new significant catalysts, but reasonable valuation and new buyback program may be sufficient enough to push the stock to new highs ahead of the earnings report.

For a look at all of today’s economic events, check out our economic calendar.

Silver Price Daily Forecast – Silver Gains Ground Despite Stronger Dollar

Silver Moves Higher As Gold/Silver Ratio Declines

Silver is currently trying to settle above the resistance at $28.30 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to get above the resistance at the 20 EMA at 90.20 and is trying to get to the test of the next resistance level at 90.50. The 50 EMA is located at 90.60, so the U.S. Dollar Index will likely face material resistance in the 90.50 – 90.60 area. In case the U.S. Dollar Index gets above the 50 EMA, it will gain additional upside momentum which will be bearish for silver and gold price today.

Interestingly, gold is under pressure today after another unsuccessful attempt to settle above the resistance at $1900. The nearest support level for gold is located at the 20 EMA at $1880. In case gold manages to settle below this level, it will move towards the support at $1865 which will be bearish for silver.

Gold/silver ratio is currently trying to settle below the 67 level. If this attempt is successful, gold/silver ratio will head towards the support at 66.50 which will be bullish for silver.

Technical Analysis

silver june 11 2021

Silver managed to get above the resistance at $28.00 and is trying to settle above the next resistance level which is located at $28.30. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum.

If silver gets above $28.30, it will head towards the next resistance level at $28.90. A move above this level will push silver towards the resistance which is located at $29.30.

On the support side, the previous resistance at $28.00 will likely serve as the first support level for silver. If silver declines below this level, it will head towards the next support near the 20 EMA at $27.75. A successful test of the support at the 20 EMA at $27.75 will open the way to the test of the major support level which is located at $27.50.

For a look at all of today’s economic events, check out our economic calendar.

Stocks Move Higher As Traders Believe That Inflation Remains Under Control

The Market Is Not Afraid Of Inflation

S&P 500 futures are gaining some ground in premarket trading as traders remain confident that the Fed keeps inflation under control.

Yesterday, U.S. reported that Inflation Rate increased by 5% year-over-year in May compared to analyst consensus of 4.7%. The report did not put any pressure on the stock market as analysts pointed out that the surge in prices of used trucks and cars played a crucial role in pushing inflation above previous estimates.

Bond traders remained confident in Fed’s ability to control inflation, and the yield of 10-year Treasuries declined below 1.44% before moving back above 1.45%. A week ago, the yields of 10-year Treasuries were close to 1.60%, so market sentiment changed materially in recent trading sessions.

WTI Oil Gets Back Above The $70 Level

Yesterday, WTI oil dipped below the $69 level after U.S. announced that it removed sanctions on several former Iranian officials. The move was unrelated to current talks about Iran nuclear deal, but traders (and algorithms) reacted to the headlines.

The market quickly learned that the move had no relation to nuclear talks, and oil moved back to the $70 level. At this point, traders remain focused on the robust rebound of the U.S. economy and increased demand during the summer driving season.

The recent EIA Weekly Petroleum Status Report indicated that crude inventories declined by 5.2 million barrels, which served as an additional positive catalyst for oil. Interestingly, gasoline inventories increased by 7 million barrels, but they remained at the five-year average for this time of the year.

U.S. Dollar Tries To Gain Upside Momentum

Lower Treasury yields did not put pressure on the U.S. dollar. The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, received support at the 90 level and moved above the 20 EMA at 90.20.

It looks that precious metals traders are puzzled by recent moves in Treasuries and U.S. dollar, as gold remains stuck in a tight range below the psychologically important resistance level at $1900. If gold manages to get above this level, it will gain additional upside momentum which will be bullish for gold mining stocks.

For a look at all of today’s economic events, check out our economic calendar.

Shiba Inu Drops Below Key Support Level

Shiba Inu Moves Lower As Dogecoin Remains Under Pressure

Shiba Inu declined below the key support level at $0.000007 and continued to move lower while the crypto market was under some pressure ahead of the weekend.

Bitcoin continues its attempts to settle above the resistance at $37,000, but it remains to be seen whether it will be able to develop sufficient upside momentum.

Dogecoin, which has a material impact on Shiba Inu, failed to settle above the 50 EMA at $0.3470 and made an attempt to settle below $0.3200. Dogecoin remains in a downside trend and its trading volume is declining, which is bearish for Shiba Inu.

I’d note that Bitcoin Dominance, which shows Bitcoin’s market capitalization as a percentage of the total crypto market capitalization, rallied in recent days, indicating that market’s interest in altcoins declined.

Technical Analysis

shiba inu june 11 2021

Shiba Inu managed to get below the major support level at $0.000007 and is moving towards the recent lows at $0.00000630. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If Shiba Inu settles below the support at $0.00000630, it will head towards the next support level at $0.00000440. No important levels were formed between the support at $0.00000440 and the resistance at $0.00000630 so this move may be fast. A successful test of the support level at $0.00000440 will push Shiba Inu towards the next support level at $0.00000340.

On the upside, Shiba Inu needs to get back above $0.000007 to have a chance to gain upside momentum in the near term. In case Shiba Inu gets above this level, it will head towards the next resistance which is located at $0.000008. A successful test of this level will push Shiba Inu towards the major resistance level at $0.000010.

From a big picture point of view, the technical picture for Shiba Inu looks bearish, and Shiba Inu needs additional positive catalysts to break the current downside trend.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Daily Forecast – U.S. Dollar Remains Under Pressure

Euro Is Moving Higher Against U.S. Dollar

EUR/USD has managed to settle back above the 20 EMA at 1.2175 while the U.S. dollar is under some pressure against a broad basket of currencies.

The U.S. Dollar Index is testing the nearest support level which is located at 90. A successful test of this level will push the U.S. Dollar Index towards the support at 89.75 which will be bullish for EUR/USD.

Yesterday, the European Central Bank left the interest rate unchanged. There were no surprises in the Bank’s commentary, and ECB Interest Rate Decision had minimal impact on EUR/USD.

Interestingly, U.S. inflation data failed to put pressure on EUR/USD despite the fact that U.S. Inflation Rate grew by 5% year-over-year in May compared to analyst consensus which called for growth of 4.7%.

Today, foreign exchange market traders will focus on preliminary Michigan Consumer Sentiment report for June. Analysts expect that Consumer Sentiment improved from 82.9 in May to 84 in June as the economy continued to grow.

Technical Analysis

eur usd june 11 2021

EUR/USD is currently moving towards the resistance level at 1.2200. If EUR/USD manages to settle above this level, it will head towards the next resistance at 1.2220.

A successful test of the resistance at 1.2220 will open the way to the test of the next resistance level which is located at 1.2250. A move above this level will signal that EUR/USD will try to develop additional upside momentum.

On the support side, the nearest support level for EUR/USD is located at the 20 EMA at 1.2175. If EUR/USD gets below this level, it will move towards the next support at 1.2155.

A successful test of the support at 1.2155 will push EUR/USD towards the next support near the 50 EMA at 1.2130. If EUR/USD manages to settle below the 50 EMA, it will gain additional downside momentum and head towards the support at 1.2115.

From a big picture point of view, EUR/USD remains stuck in the range between the support at 1.2115 and the resistance at 1.2250, and it will need additional catalysts to get out of this range.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Daily Forecast – British Pound Attempts To Gain More Ground Ahead Of The Weekend

British Pound Is Mostly Flat Against U.S. Dollar

GBP/USD is currently trying to settle above the resistance at 1.4180 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle below the support at 90. If the U.S. Dollar Index manages to settle below this level, it will head towards the next support at 89.75 which will be bullish for GBP/USD.

UK has just reported that Industrial Production declined by 1.3% month-over-month in April compared to analyst consensus which called for gorwth of 1.2%. On a year-over-year basis, Industrial Production grew by 27.5% as it was under huge pressure in April 2020. Meanwhile, Manufacturing Production decreased by 0.3% compared to analyst consensus which called for growth of 1.5%.

Foreign exchange market traders will continue to monitor the developments in U.S. government bond markets as Treasury yields remain under pressure after the release of U.S. inflation data. While U.S. Inflation Rate exceeded analyst expectations, traders remain confident that inflation is temporary, which is bullish for bonds and bearish for the American currency.

Technical Analysis

gbp usd june 11 2021

GBP/USD managed to settle above the 20 EMA at 1.4145 and is testing the resistance at 1.4180. In case this test is successful, GBP/USD will head towards the next resistance level at 1.4200.

A move above the resistance at 1.4200 will push GBP/USD towards the next resistance at 1.4240. In case GBP/USD settles above this level, it will head towards the resistance at 1.4280.

A successful test of the resistance at 1.4280 will open the way to the test of the next resistance at 1.4345. I’d note that GBP/USD has not visited this territory for several years so it remains to be seen whether previous levels will be relevant for today’s trading.

On the support side, the previous resistance at the 20 EMA at 1.4145 will serve as the first support level for GBP/USD. In case GBP/USD declines below this level, it will head towards the major support level which is located at 1.4100.

For a look at all of today’s economic events, check out our economic calendar.

USD/CAD Daily Forecast – Canadian Dollar Continues To Trade In A Tight Range

USD/CAD Video 10.06.21.

U.S. Dollar Is Mostly Flat Against Canadian Dollar

USD/CAD is still trading near the 20 EMA at 1.2100 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle below the support at the 90 level but failed to develop sufficient downside momentum and rebounded back above this level. As a result, the U.S. Dollar Index remains stuck between 90 and the resistance at the 20 EMA at 90.20. If the U.S. Dollar Index gets above the 20 EMA, it will move towards 90.50 which will be bullish for USD/CAD.

Today, the U.S. reported that Inflation Rate increased by 5% year-over-year in May compared to analyst consensus which called for an increase of 4.7%. On a month-over-month basis, Inflation Rate grew by 0.6% compared to analyst consensus of 0.4%. Core Inflation Rate was also higher than expected as it grew by 3.8% year-over-year compared to analyst consensus of 3.4%.

The reports indicated that inflation continued to gain ground but the reaction of foreign exchange market traders was muted. The reaction of the bond market was even more strange as Treasury yields moved to multi-week lows. At this point, it looks that Fed officials managed to calm traders who remain confident that high inflation numbers are temporary.

Technical Analysis

usd cad june 10 2021

USD to CAD is currently trying to stay above the 20 EMA at 1.2100. In case USD to CAD manages to stay above this level, it will head towards the resistance at 1.2130.

If USD to CAD gets above 1.2130, it will move towards the next resistance level which is located at 1.2170. A successful test of the resistance at 1.2170 will push USD to CAD towards the resistance at 1.2200.

On the support side, a move below the 20 EMA will push USD to CAD towards the support at 1.2080. If USD to CAD gets below this level, it will move towards the support at 1.2065. A successful test of the support at 1.2065 will open the way to the test of the next support at 1.2040.

For a look at all of today’s economic events, check out our economic calendar.

Why GameStop Stock Is Down By 13% Today

GameStop Video 10.06.21.

GameStop Stock Moves Lower As Company Expects To Sell More Shares

Shares of GameStop gained downside momentum after the company released its quarterly results.

GameStop reported an adjusted loss of $0.45 per share and revenue of $1.28 billion, easily beating analyst estimates on both earnings and revenue. GameStop noted that it had $770.8 million of cash and restricted cash on May 1, 2021, while it had not borrowings under the asset-based revolving credit facility and no long-term debt.

GameStop also stated that it may offer and sell up to 5 million shares of its common stock in “at-the-market” offerings.

The company has also announced that Matt Furlong will become CEO while Mike Recupero will become CFO. Both executives come from Amazon.

GameStop added that its May total sales increased by about 27% compared to last year, but the company continued to suspend guidance for the full year.

What’s Next For GameStop Stock?

While the company’s report exceeded analyst expectations, the news about another share sale served as a bearish catalyst for GameStop shares. The company’s management is using the stock’s popularity to boost GameStop’s balance sheet, which is the right thing to do from the business point of view.

However, the “at-the-market” share sale may put pressure on GameStop shares as trading volume has declined significantly in recent months compared to January – March period.

From the fundamental point of view, the stock remains significantly overvalued despite the positive trends highlighted by the report. In this light, the near-term dynamics of the stock depend on the activity of retail traders.

It remains to be seen whether the current pullback will turn into a strong sell-off as professional short-sellers will likely stay away from GameStop after three major short squeezes in 2021.

Without selling pressure from professionals, GameStop’s fate will be in the hands of retail traders which were not worried about the company’s fundamentals before, and may continue to hold GameStop stock.

For a look at all of today’s economic events, check out our economic calendar.