What will move the market on June 6th–10th?

Last week led to one of the biggest selloffs we have witnessed in markets. Stocks, crypto, gold, and the euro were under huge pressure amid the advent of recession in the US. Here’s what we expect from assets this week

Forex

The ECB will meet on the main refinancing rate (interest rate) on Thursday, 14:45 GMT +3. The six members of the ECB Executive Board and 15 of the 19 governors of the Euro area central banks vote on where to set the rate. Despite the common knowledge that the rate will remain unchanged, ECB will hold a press conference after the monetary policy statement.

The plans to fight inflation in the EU deserve attention. EURUSD will gain volatility and may break through the vital resistance area of 1.0760- 1.0800. In case of a breakout, the next resistance for the pair will be at 1.1030.

Oil & Gold

EU leaders had agreed to ban 90% of Russian crude by the end of the year as a part of the bloc’s sixth sanctions package. Later, Saudi Arabia reported it could step up if Russian output dips under sanctions. Oil didn’t have enough momentum to exit the three-month consolidation with borders at $90–120 per barrel. Still, the outlook for XBRUSD is bullish due to difficulties in switching from Russian imports.

Gold oscillates near the vital support area of $1790–1800. The slide below will mean the bull market for XAUUSD is postponed for several months, and the USD may strengthen simultaneously. However, the greenback prospects are gloomy amid inflation that isn’t slowing down sufficiently.

Stocks

Take a closer look at the HK50 index. The Chinese economy is recovering from lockdowns and supply disruptions, so we can expect some bullish movements soon. Step by step, the country takes control over the microchip production as the settlements with Taiwan suppliers are now partly managed by China. Also, HK50 is close to the strong resistance trendline, which is the final point on the way to the uptrend.

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