USDJPY trading on Tuesday still managed to break above the 110.00 psychological resistance. By 10:00 GMT Wednesday, the dollar holds above 110.20, while maintaining the potential for the development of further bullish rally. The main catalyst for such growth dynamics remain Treasury yields. rate of return on 10-year Treasuries reached 3,095% - the highest level since 2011, while the yield of 2-year bonds rose to 2.591%, the highest since 2008.
For the first time since 2008, the income from investments in short-term government bonds US on par with the dividend yield of the American stock market, as measured by the S & P 500. Index Actually, this was the main cause of yesterday's decline of capitalization of US funds. Treasury yields reacted to the rise in output of strong data on retail sales. In particular, the retail sales increased by 0.3% compared to the previous month, the rise of which was revised from 0.6% to 0.8% in the USA in April. The consensus forecast also assumes an increase of 0.3%. Strong retail is the key to future growth of the US economy, since it is a household are the main contributors to its expansion. After the release of statistical probability that the Fed will raise rates at the meeting of June 13 it reached almost 100%. Taking this into account,
Recommendation USDJPY: BuyLimit 109,80 TP 112,00 SL 109,30
Quotes Brent crude ended the trading session on Tuesday in negative territory, falling to $ 78.18. Daily maximum at the same time been fixed at $ 79.45. There is still a high demand for oil caused by the increase of geopolitical tensions in the Middle East, as well as fears that the US withdrawal from the nuclear deal with Iran will lead to a shortage of raw materials in the global market. It should be noted that the potential impact of such a foundation at the cost of hydrocarbons has been completely exhausted, which makes the oil industry vulnerable to any deterioration of the news background. Since the total long position in crude oil remains at all-time highs, it is necessary to admit the likelihood of sudden onset of a downward correction. Catalyst sales may well perform statistics. Published yesterday, data from the American Petroleum Institute reported an increase in inventories at 4.8 million. Barrels. Today at 17:30 GMT traders attention will be presented to the official data from the Energy Information Administration. In the case of a similar increase in stocks, and also provided the weekly increase in oil production in the US, the market could return and sellers. Should make an additional bet on the growth of the dollar, traditionally affects the price of oil.
Recommendation UKOIL: SellStop 77,00 TP 70,00 SL 77,80
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