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Market News and Charts for June 28, 2021

Hey traders! Below are the latest forex chart updates for Monday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!

EUR/USD

The pair will continue to trade lower in sessions to retest a key support area at the 1.17000 price level. Federal Reserve Governor Jerome Powell is under increased pressure to raise the US interest rate from the current 0.25%. This was following the rising inflation in the country as shown in the Personal Consumption Expenditures (PCE) and Consumer Price Index (CPI) reports. The PCE Price Index YoY advanced by 3.9% in May. In the same month, the CPI data soared 5.0%. Both figures represent a 13-year high or since the last financial crisis. However, Powell said that the surging inflation is temporary as America transitions to a post-pandemic economy. However, the continued massive spending by the US government could result in a further increase in prices. Recently, President Joe Biden gave a nod to the 1.2 trillion infrastructure bill with a big focus on roads, railways, and power grids. Biden also plans to increase the corporate tax from 21% to 28%,

FinanceBrokerage - Market News: EUR/USD Chart USD/JPY

The USDJPY pair will trail the uptrend channel to reach the 114.000 resistance area. Investors will continue to divest in Japanese yen as the future performance of the world’s third-largest economy remains bleak. While the rest of the world battles with soaring prices, Japan’s challenge for the past decades is deflation. The Bank of Japan, the government, and Tokyo all had a flat zero result in May’s inflation reports. The country also had its highest unemployment rate this year in May at 3.0% as the fourth wave of the pandemic hit its peak in the reported month. Meanwhile, Japan’s Jobs/Application ratio stood at 1.09%. The government plans to kickstart the economy with the Tokyo Olympics starting in July. However, many experts worry that this might result in another outbreak of cases that will further cripple the economy. The event is expected to bring 16 billion to the economy. This is already lower by 4.9% as the attendance limit is set at 10,000.

FinanceBrokerage - Market News: USD/JPY Chart

NZD/CAD

The pair will break out from the “Falling Wedge” pattern resistance line in the coming days to retest the 0.90000 level. While the year-on-year (YoY) figure shows net exports shrinking by 60 million, the first time in 10 months, the monthly figure continues to show improvement. In May, the trade balance was up by 469 million against a revised result in April of 414 million. Also, the exports are showing a bigger number at 5.87 billion against imports at 5.40 million. On the other hand, recent reports from Canada also show impressive results. Preliminary results for the manufacturing and wholesale sales were up 1.0% and 1.1%, respectively. However, the plan to inject more stimulus in Ottawa to support the local economy brings the value of the Canadian dollar lower. Last week, lawmakers in the country passed PM Justine Trudeau’s bill extending government support to businesses and individuals as the parliament goes on summer break.

FinanceBrokerage - Market News: NZD/CAD Chart

GBP/USD

The GBPUSD pair will break down from an uptrend support line and plunge around the 1.34000 area. The Bank of England (BOE) retained its benchmark interest rate at a historical low of 0.10% on Thursday, June 24. At the same time, the central bank reaffirmed its quantitative easing program worth 875 billion in June. At the previous meeting, the Federal Reserve also held at its 0.25% rate. But there is a higher pressure for the US central bank to tighten its monetary policy. This was due to soaring inflation. The United States has a record of 5.0% CPI in May. Although, both central banks anticipate the fiscal 2021 figure to come above 3.0%. The Bank of England (BOE) and the Federal Reserve have an annual inflation target of 2.0%. Another worry by analysts is the tension between the spending plan by UK Prime Minister Boris Johnson, who backs higher spending, and Finance Minister Rishi Sunak, who is a proponent of mindful spending by the British government.

FinanceBrokerage - Market News: GBP/USD Chart



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