US Closing Price – Shares Gain After Hot Data Taper Fears, Oil Reduces Weekly Loss, Gold Gives Off PMI Gains, Bitcoin Falls Again On The Heat In China
US stocks reversed after both hawkish comments from the Fed harker and an impressive flash PMI hit another streak high as average sales prices for goods and services continue to rise at unprecedented rates. Harker commented that the Fed should have talks about a rejuvenation sooner rather than later. In the FOMC minutes, the rejuvenation made the cat speak out, and now we hear where the policymakers stand when they remove a shelter.
U.S. factories and services are seeing impressive growth, suggesting this economy will run hot for a few months, and fear the Fed will have to rejuvenate much earlier than it expected. The Flash Composite Output Index, Services Business Activity Index, and Manufacturing PMI, all of which have record highs. The story of the US state of growth emergency will fuel the rejuvenation debate as real inflationary arguments continue to be put forward across America.
Crude oil prices are rebounding after much of the energy market priced in more Iranian crude oil production later this summer and after robust PMI data in Europe and the US suggest a stronger near-term recovery in crude demand. The outlook for crude oil demand remains very strong for the second half of the year, so it will be difficult for oil traders not to buy every drop. Some relief to the demand outlook is optimism that despite a sharp surge in cases with Indian variants, the UK will continue to be able to end its lockdown. Britain could be the template that the rest of the world will follow.
Gold prices cut profits after another high-volume record of PMI data for manufacturing and service drove the dollar higher. Gold was prone to profit-taking, which went into the European closing price, and the excellent US data kicked off the week for many traders.
The outlook for gold is still looking good as the Fed appears to have handcuffed government bond yields, keeping them lower for an extended period of time. The week ahead is filled with Fed-Speak and economic data that shouldn’t rock the boat. Gold is facing temporary resistance around the $ 1,900 level, but if it breaks quickly early next week the momentum could be very strong.
Bitcoin gave up previous gains after another wave of critical comments from Beijing sparked a wave of concern that China may not be able to power Bitcoin in the short term. China pledged to resolutely prevent financial risk and reiterated its intention to crack down on Bitcoin mining and trading.
Bitcoin has two issues, ESG and a lower reliance on China, both of which can take some time to complete.
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With more than 20 years of trading experience, Ed Moya is a leading market analyst at OANDA providing up-to-date intermarket analysis, coverage of geopolitical events, central bank policies and market reactions to company news. His particular expertise lies in a variety of asset classes, including forex, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokers, research teams, and news departments on Wall Street, including Global Forex Trading, FX Solutions, and Trading Advantage. Most recently, he worked at TradeTheNews.com, where he provided market analysis of economic data and company news. Ed lives in New York and is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s best-known news outlets such as Reuters, Bloomberg and the Associated Press. He is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, the New York Times, and the Wall Street Journal. Ed has a BA in Economics from Rutgers University.