S&P500

The US market has lost its upside momentum, both due to market fatigue and a slowdown in US economic growth.

Asian markets today: China indices + 0.7%, Japanese indices -1.8%

European markets are coming under strong pressure from the risk of a third wave of the coronavirus pandemic. France, Italy, Czech Republic, Ukraine, and Poland reported a sharp rise in new COVID-19 cases. France records above +20 K new cases per day. The slow pace of COVID-19 vaccinations in the EU has been a cause of great concern. The conflict around the AstraZeneca vaccine is over, and its vaccine is allowed again, but this situation has undermined public confidence in vaccine safety. US studies have shown that AstraZeneca's vaccine is 79% effective and has no side effects.

Emerging markets are coming under pressure from rising US government bond yields. The Turkish lira collapsed by 9%. Moreover, it experienced a 14% drop during the trading session. Such a steep decline was triggered by the unexpected resignation of the head of Turkey's central bank. His policy was opposed by President Erdogan, a vocal opponent of high rates. This came after Turkey's central bank sharply hiked its main interest rate to 19% on Thursday. Russia's central bank also unexpectedly raised its key interest by 0.25% to 4.5%, noting that there could be another rate hike. At the same time, Geoffrey Okamoto, the first deputy managing director of the International Monetary Fund, said that the spread of COVID-19 vaccines would power a stronger global economic recovery in 2021.

Today's macroeconomic calendar includes some important releases from the United States. Thus, Fed Chairman Powell has given a speech today. However, the market did not expect anything new from his speech. The regulator has explained its policy stance to investors in detail. The Fed is going to keep interest rates near zero until 2023.

According to the report on US home sales, experts predict a decline in sales by 3%. At the moment, data on home sales is not a very important indicator for the market. A decline is likely to be seasonal in nature, as Americans traditionally buy houses in the summer.

Oil: As expected, the number of producing wells in the United States reached the highest level since the beginning of the year amid high oil prices. However, this may prevent oil prices from moving higher.

The Dow Jones Industrial Average was trading at 32,630 at the opening of the market. However, the trading day is likely to be closed with losses. The range is 33,000–33,000.

WTI was trading at 61.05, down by 0.6% at the opening of the market. The index is expected to trade within the $59-62 range.

USD/CAD. The pair bounced back sharply to 1.2500, as expected. The trading range is 1.2400-1.2580. The quotes stopped as the Canadian dollar hit a new high against the US dollar.

USDX. The US dollar index seems to be stronger than other currencies and it is expected to rise after consolidation. The trading range is 91.50–92.50.