Bitcoin slides after Feds seize Colonial ransom

“All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out.” — Peter Lynch

 

FOREX

 

FX volatility low, dollar up slightly as investors wait on inflation

 

The U.S. dollar edged up slightly and currency market volatility on Tuesday hit the lowest level in more than a year, as investors sat on the sidelines waiting for clearer signals on inflation levels and central bank policies around the world.

 

GBP/USD in the hands of US pres Biden around G7 /Irish border

 

Tensions between the UK and the EU regarding the implementation of the Northern Ireland protocol will be a focus for the week (or possibly for weeks ahead) as the problems surrounding its implementations will be a topic of discussion between the US President Job Biden and PM Boris Johnson ahead of the G7 summit in Cornwall starting on June 11. 

 

COMMODITIES

 

Oil Closes Above $70 a Barrel for First Time in Over Two Years

 

West Texas Intermediate futures surpassed the $70 mark to close at its highest since Oct. 2018 after briefly touching the key psychological level earlier this week. Investors focused on the health of the U.S. market ahead of inventory data on Wednesday. Confidence in the outlook for oil demand continues to grow as accelerating vaccinations allow people to travel more.

 

Gold prices mark first loss in 3 sessions after tapping highs above $1,900

 

Gold futures pulled back on Tuesday after touching highs above the key $1,900 an ounce level, prompting prices to suffer their first loss in three sessions.

 

With bond traders unsure what to expect in Thursday’s U.S. consumer price index data, “it’s no surprise to find $1,900 proving a tough psychological level for gold to break above,” Adrian Ash, director of research at BullionVault, told MarketWatch.

 

STOCKS

 

Wall Street closes little changed as "meme stocks" extend rally

 

Wall Street stocks struggled for closing gains on Tuesday as a lack of clear market catalysts kept institutional investors in a holding pattern, while retail traders kept the rally of so-called meme stocks alive.

 

Stocks touch new highs as volatility eases

 

MSCI's all-country world index, a U.S.-centric benchmark for global equity markets rose 0.02% to 717.17 after earlier scaling a fresh intraday high. In Europe, the pan FTSEurofirst 300 index added 0.08% to close at a new record high, while the STOXX 600 index rose 0.15% to also set a new closing high.

 

CRYPTO

 

Bitcoin falls to 3-week low as IRS seeks approval for reporting rule

 

Bitcoin fell to a three-week low on Tuesday amid signs of institutional investor caution, while the head of the U.S. Internal Revenue Service called for lawmakers to provide authority for tighter reporting rules on crypto transfers.

 

MORE HEADLINES

 

•    London’s Ring metals trading floor wins battle to reopen
•    U.S. investigates disclosure of tax records on rich Americans
•    Bezos, Buffett, Bloomberg, Musk, Icahn and Soros pay tiny fraction of wealth in income taxes, report reveals
•    Tesla veteran Jerome Guillen leaves after less than three months leading trucking business
•    A top antitrust advisor at the White House is reportedly a bitcoin millionaire

 

ANALYSIS

 

AUD/USD set to surge towards 0.82 by year-end – Westpac

 

“Our base case remains for the aussie to trend higher, to 0.80 by end-Q3 and 0.82 by year-end.” 

“A$ should benefit from anticipation of synchronised global recovery over 2021. However, A$ is the weakest G10 currency over the past month, reflecting the RBA’s aggressive balance sheet expansion (QE exceeding the pace of debt issuance) and perhaps also investor anticipation of China-related headwinds for Australian exports and FDI beyond the current resources boom.”

“Ranges may take some time to give way on the top side.”

 

CHART

 

Ethereum – Daily Candlesticks

 

  
Source: GKFX Prime Metatrader 4 

ETHUSD has fallen back to a rising trendline connecting the lows since January. A break below the trendline could open up more price weakness, perhaps to the $1000 psychological level. - Prepared by Trading Writers*

 

CALENDAR

 

*Times in GMT

 

 
Source: FX Street Economic Calendar

 

Source

 

https://www.fxstreet.com/economic-calendar
https://finance.yahoo.com/news/us-stocks-wall-street-closes-200032362.html
https://finance.yahoo.com/news/global-markets-stocks-touch-highs-195003391.html
https://finance.yahoo.com/news/oil-edges-lower-rally-cooling-235629048.html
https://finance.yahoo.com/news/1-bitcoin-falls-3-week-193057563.html
https://www.reuters.com/article/global-forex/forex-fx-volatility-low-dollar-up-slightly-as-investors-wait-on-inflation-idUSL2N2NQ26K
https://www.ft.com/content/935d47ba-b6cc-4ccb-9aa9-cad3debc33cd
https://www.marketwatch.com/story/gold-futures-struggle-to-find-purchase-above-1-900-11623154085
https://www.fxstreet.com/news/gbp-usd-in-the-hands-of-us-pres-biden-around-g7-irish-border-202106081801
https://www.investing.com/news/economy/us-investigates-disclosure-of-tax-records-on-rich-americans-2526734
https://www.cnbc.com/2021/06/08/bezos-musk-buffett-bloomberg-icahn-and-soros-pay-little-in-taxes.html
https://www.cnbc.com/2021/06/07/tesla-veteran-jerome-guillen-departs-.html?recirc=taboolainternal
https://www.cnbc.com/2021/06/08/tim-wu-advisor-to-biden-administration-is-a-bitcoin-millionaire.html
https://www.fxstreet.com/news/aud-usd-set-to-surge-towards-082-by-year-end-westpac-202106080646