US Open Note – Calm day ahead of busy week; US futures are flat



Quiet day ahead of Fed meeting this week

The US dollar has a negative momentum ahead of the FOMC meeting this current week. US 10-year treasury yields declined to a record low of 1.13% before recovering to 1.20 driving the dollar index down to 92.70. Dollar/yen is holding near 110.30 and is currently red, while US futures are neutral. The Fed meeting will focus on the concerns about the economy and the expectation is to tread carefully on the path to tapering as inflation rises higher.

If negotiators can finish the details, the Senate might vote again this week on whether to begin debating a crucial portion of President Joe Biden's agenda, a $1.2 trillion bipartisan infrastructure plan to restore the nation's roads and bridges.

In terms of earnings releases, Tesla, Inc. is expected to report earnings after the market's close. The report will be for the half ending June 2021.

Euro and pound improve the bullish move

Concerns about inflation, the impact of mounting Covid-19 cases, and additional constraints on the global economic recovery weighed on European stocks on Monday. Meanwhile, the mood was pulled down by Beijing's broadening internet-sector crackdown, with tech investor Prosus leading the losses as China strengthened sanctions against Tencent, in which the Dutch company owns a 28.9% interest. The euro is posting a slightly positive move around 1.1780 versus the greenback, although it is finding resistance at the 20-day simple moving average (SMA).

The virus situation in the United Kingdom is getting better. Markets will most likely focus on the viral figures due to a lack of other economic data. In that regard, recent news has been encouraging, with new cases dropping for the sixth day in a row to roughly 29,000. It is too early to rejoice though, because the virus figures have yet to reflect the potential impact of last Monday's Freedom Day. Cable is struggling to surpass the 20-day SMA and the 1.3800 handle.

Antipodean currencies and commodities are neutral

The calm day is affecting trading in the commodity currencies as well. Aussie/dollar is currently near its opening level at 0.7362 and kiwi/dollar is marginally up near 0.6970. Dollar/loonie is flattening below the 200-day SMA and is completing the third neutral day in a row.

Elsewhere, oil prices are moving around the $71.80/per barrel, failing to continue the previous’ days positive momentum, while the yellow metal is hovering near the $1,800/per ounce.

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