Biden's infrastructure business deal supports stocks

Lower than expected PCE inflation data (0.5%, 0.6% expected, 0.7% prior) and the bipartisan statement US President Joe Biden secured hiked the stocks.

June 29, 2021 - 04:13 PM 444 views

Stock Market

Market Analysis

© Stock Market

Free Enquiry Now

Lower than expected PCE inflation data (0.5%, 0.6% expected, 0.7% prior) and the bipartisan statement US President Joe Biden secured hiked the stocks.

 The value of Biden’s substructure plan is $1.2 trillion over eight years.

At the same time, the President of Boston Federal Reserve Bank Eric Rosengarten said on Friday that a build-up of financial firmness risks linked to a low-interest rate environment might lead to another downswing.

This would result in interruptions to the labor market recovery and hinder a return to maximum work.


On Friday, the S&P 500 index rose +0.3%, finishing the week up 2.7%.

This was the biggest weekly in five months. The PCE (0.5%, 0.6% expected, 0.7% prior) data for May showed that inflation rose less than expected.

The Dow Jones Business enterprise Average traded 0.7% higher, while Nasdaq (-0.06%) finished the day almost unchanged.

Ten out of 11 S&P 500 sectors finished the day higher, with the financial (+1.21%) and the services (+1.07%) sectors directing and the technology (-0.12%) slightly in the red. 

USD Index (.DXA) traded lower last week as expected. 

DXA closed the week downcast by 0.58%. On Friday the index closed almost unchanged. 

As a result, Gold (+0.06%) and silver (+0.14%) futures traded sideways on Friday, as they did for most of the last week. 

Rally tries in gold were thwarted by sellers at 1795.60 while the silver found bidders around 25.60. 

WTA crude futures mobilized about 1%, finishing the week 3.87% higher.

EURUSD rallied on Friday but right below the 50% Fibonacci retracement level the red team took over and forced the pair down.

 This resulted in a bearish rejection candle that indicates EURUSD we are likely to see weakness in today’s trading. The nearest resistance level area is at 1.1976 – 1.1985 (Friday’s high and the 50% Fibonacci retracement) while the nearest key support level is at 1.1846.

 Price action AUDUSD looks fairly similar to what we saw in EURUSD on Friday. 

The loss of upside momentum represents failing, and a close below Friday’s low would be a confirmation that the sellers are in charge. 

If AUDUSD closes below 0.7580 a move to 0.7538 support looks likely.Should the market, however, manage to challenge the 0.7617 resistance above, we

might see a move towards the upper end of the bearish price channel. The nearest key resistance area is 0.7636 – 0.7652.


Share With -

 

No comments yet for this post

Please Login to comment this article.

If not a registered user yet, Please signup here