Wednesday, June 16, 2021

XAG/USD extends three-day downtrend under $28.00 amid firmer USD

Silver refreshes intraday low as US greenback picks up bids. Buck shrugs off downbeat Treasury yields forward of US Retail…

By Staff , in Silver , at June 15, 2021

  • Silver refreshes intraday low as US greenback picks up bids.
  • Buck shrugs off downbeat Treasury yields forward of US Retail Gross sales, FOMC.
  • Danger catalysts hold driver’s seat, Fed’s transfer eyed.

Silver (XAG/USD) stays on the again foot for the third consecutive day, taking presents round an intraday low of $27.59 amid early Tuesday. In doing so, the white metallic reacts to the newest pick-up within the US greenback index (DXY) amid cautious markets.

DXY regains upside momentum, following a sluggish begin to the week, whereas selecting up bids close to 90.53, up 0.05% intraday, by the press time. The buck gauge appears to disregard the latest fall within the US 10-year Treasury yields amid the market’s indecision forward of Wednesday’s Federal Open Market Committee (FOMC). That stated, the US 10-year Treasury yields drop for the primary time in three-day, down 1.4 foundation factors (bps) to 1.487% whereas writing.

It ought to, nonetheless, be famous that the latest restoration within the US inflation expectations, per the information conveyed by the Federal Reserve banks of New York and St. Louis, underpin safe-haven demand of the buck amid fears of Fed’s tapering.

Additionally on the identical line might be the chatters that extra Fed policymakers will convey their bullish bias for the dot-plot in Wednesday’s assembly.

Moreover, fears of the Delta variant of the covid and full markets’ response to the Group of Seven (G7) assembly updates, primarily regarding China information, exerts further draw back strain in the marketplace sentiment and weighs on the silver costs.

As we speak’s US Retail Gross sales might provide intermediate bounce to the white metallic if the precise readings for Could match downbeat forecasts, by probing the chances of the Fed’s tapering. Nonetheless, merchants are more likely to stay cautious and should select to increase the earlier downtrend forward of the Fed’s verdict.

Learn: Federal Reserve Preview: First up, then down? Playbook for buying and selling the Fed

Technical evaluation

A transparent draw back break of 21-day SMA directs silver costs to an ascending help line from April 29.


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