Corrections Across the Board Amid US Bank Holiday
19 June 2023
Monday's market action is characterized by a quieter tone, largely due to a bank holiday in the US. In the Forex market, we're witnessing a correction phase across several currency pairs. EURUSD is slightly down after an impressive performance last week, while AUDUSD, which had a robust first half of June, is also pulling back as traders take profits. A similar correction is seen in USDCAD which suffered heavy losses this month, and now showing a small upswing.
Similarly, USDJPY is on the downside, going against its dominant bullish trend. The indices are also showing signs of a pullback. On Friday, both the S&P 500 and Dow Jones formed shooting star patterns, often seen as bearish reversal signals, and today both indices are declining. The Nasdaq started a correction on Friday as well and continues to trend lower today.
Meanwhile, the Japanese Yen, which was notably weak throughout June, is showing slight strength today, but it's nothing remarkable as the currency remains relatively weak overall.
On the commodities front, there's not much noteworthy movement to start the week, with most commodities experiencing minor declines. However, the picture could change once the European session kicks in.
Overall, we're expecting a quieter trading day with most instruments counteracting their dominant trends from the previous week. The US bank holiday will likely contribute to lower volatility in today's market.