Vanishing Upside Impulse of Greenback
Greenback and Loonie maintain the position of the firmest. Still, the impulse is vanishing. Australian dollar stays the softest currency. DOW reduced -0.01% and closed at 21478.17. S&P 500 lifted 0.15% and settled at 2432.54. NASDAQ was up 0.67% and stopped at 6150.86. 10 year yield increased to 2.357 but then dropped -0.012 to close at 2.334. Yellow metal is struggling to reach 1225 after hitting the minimum of 1216.5. WTI crude oil is trading near 45.3. FOMC published its protocol. Members lifted the policy rate by 25 basis points. They also discussed the timeline for balance sheet tapering, but there was some intense divergence. Some said the tapering should be started soon, some said it should be realized later.
Christine Lagarde (IMF Managing Director) is worried about financial stability. She said that corporate leverage in many countries is too high. Lagarde added that ECB should fix the balance sheet. Concerning China’s economic progression, IMF director claimed that it will lead to uncontrollable public and private debt.
Australian trade surplus expanded from 0.9 billion to 2.47 billion Aussie in May. Exports lifted 9% and imports grew 1%. Coal exports rose 62%. Today, European Central Bank will have a meeting. Germany will announce factory orders. Swiss will publish Consumer Price Index. The United States will show ADP employment, jobless claims and ISM services. Tomorrow, we’ll take a look at non-farm payrolls and trade balance. Canada will publish trade balance and building permits.