The price of crude oil rose slightly after US conducted airstrikes in Syria and Iraq against two Iran-backed militias. The strikes targeted their operations and storage facilities. There was no immediate report on the number of people killed by the strikes. The price of oil rose because these strikes could provoke retaliatory attacks by the militias, which could hinder oil supplies. At the same time, there are concerns that the US and Iran will not be able to reach an agreement on the JCPOA after the recent Iranian election. The new leaders have not committed to talks with the Biden administration. Brent and West Texas Intermediate (WTI) are both trading above $70.
US futures pointed upwards after the Whitehouse and Senate negotiators attempted to keep the $1 trillion infrastructure deal alive. There were concerns about whether the deal will go on after Biden tried to tie it with another program that will cost trillions of dollars more. In a statement, he committed to proceed with the infrastructure deal that will see improvements on roads and bridges and other projects. Democrats hope to pass the bill by drawing enough Republicans to reach the 60 vote threshold. Futures tied to the Dow Jones and S&P 500 index rose by less than 10 basis points.
The economic calendar will be relatively muted today. In Germany, the statistics office will publish the latest import and export price index in the morning session. These numbers are expected to show that the index rose in May as the country’s recovery accelerated. Sweden will publish the latest retail sales and household spending data while Hong Kong will publish its trade statistics. Later this week, the top earnings to watch will be from Walgreens Boots Alliance, Bed Bath & Beyond, General Mills, and Herman Miller.
XBRUSD
The XBRUSD pair rose to a high of 76.52, which was the highest level in years. On the four-hour chart, the pair’s bullish trend is being supported by the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has continued rising. It is also between the ascending channel shown in red. Therefore, the pair will likely keep rising as bulls target the next psychological level of 80.
EURUSD
The EURUSD pair declined to 1.1922 ahead of the German trade numbers. On the hourly chart, the pair is below the 23.6% Fibonacci retracement level. It is also attempting to move below the horizontal channel shown in pink and has moved below the 25-day moving average. It has also formed a double-top pattern. Therefore, the pair will likely keep falling, with the next key target being at 1.1900.
USDCHF
The USDCHF pair rose to a high of 0.9186. On the hourly chart, the pair has moved slightly above the 25-day and 15-day moving averages. It is also attempting to move above the falling channel shown in red. It is also above the 23.6% Fibonacci retracement level. Therefore, a bullish trend will be confirmed when the price moves above the channel’s upper side.
