STOCKS RETREAT AS MUSK FEELS ‘SUPER BAD’ ABOUT THE ECONOMY

American stock futures declined as investors continued to focus on warnings from top companies and CEOs. On Thursday, Microsoft warned that its revenue and profitability growth will be impacted by the strong US dollar. This means that other companies that have a large international exposure will be impacted. The statement came a day after Jamie Dimon of JP Morgan warned about an economic hurricane in the coming months as inflation and high rates continue. And on Friday, it was reported that Tesla would lay-off 10% of its staff as Elon Musk said he felt super bad about the economy.

The price of crude oil moved sideways after the New York Times reported that Joe Biden was considering a visit to Saudi Arabia. He is expected to meet Mohammed Salman, the current crown prince. This trip is a surprise because Biden has shunned the kingdom during his presidency. However, with inflation rising in the US, the trip is seen as being necessary because of Saudi Arabia’s role in the energy industry. The trip comes after Saudi Arabia said that it will consider boosting production depending on how Russia’s slowdown affects markets.

The US dollar moved sideways after the US published the latest jobs numbers. According to the Bureau of Labor Statistics (BLS), hiring slowed in May as companies continue battling inflation. The economy added 390k jobs in May after adding an adjusted 436k in April. The figure was better than the median estimate of 325k. The unemployment rate rose to 3.6% while average hourly earnings dropped from 5.5% to 5.2%. Still, analysts believe that the Federal Reserve will maintain its hawkish tone in a bid to fight inflation. Other notable headlines are the acquisition of Turning Point Therapeutics by Bristol Myers and the bid for Kohls by Sycamore and Franchise Group.

EURUSD

The EURUSD pair is trading at 1.0730, which is slightly below this week’s high of 1.0755. This price is slightly below the important resistance at 1.0790. It is also along the 25-day moving averages while the Relative Strength Index (RSI) has been falling. The pair has also formed what looks like a double-top pattern whose chin is at 1.0615. Therefore, there is a likelihood that the pair will continue falling as bears target the key support at 1.0615.

ETHUSD

The ETHUSD pair is trading at 1,770, which is close to its lowest level this week. It has dropped from its weekly high at 1,975. The pair has moved below the 25-day and 50-day moving averages while the MACD and the Relative Strength Index have moved lower. Therefore, the pair will likely continue falling during the weekend.

AUDUSD

The AUDUSD pair is trading at 0.7245, which is close to the highest level since May 9. The current price is along the 50% Fibonacci retracement level. It has also moved above the 25-day moving average and the dots of the parabolic SAR. The Relative Strength Index has moved slightly below the overbought level. Therefore, the pair will likely keep rising as bulls target the key resistance at 0.7315.