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Wednesday's session brought a deepening correction in the stock market, with major European stock indices ending the trading session lower. The DAX lost 0.55%, the CAC40 declined by 0.46%, and the FTSE100 slipped only 0.13%.
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The worsening sentiment can be attributed to Jerome Powell's speech, in which he indicated that with inflation persisting above the target, further interest rate hikes should be expected.
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Currently, the market prices in a nearly 80% probability of the Fed implementing another 25 basis points rate hike at the July meeting.
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Strong retail sales data from Canada showed better-than-expected results, with retail sales MoM at 1.1% compared to analysts' expectations of 0.4% and a previous reading of -1.4%.
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Since the data release, the Canadian dollar (CAD) has been strengthening against the USD. USDCAD is down over 0.5% today.
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According to the published minutes from the Bank of Canada meeting, the board discussed maintaining rates at current levels and signaling a rate hike only in July (BoC raised rates by 25 basis points on June 7th).
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In the forex market, we can observe weakness in the US dollar. The USD is declining the most against the NZD and EUR. The exchange rate of the major currency pair, EURUSD, has returned to an upward trend after a few days of pause. The EURUSD quotes have surpassed the peak from June 16th and risen above 1.0970.
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The cryptocurrency market continues to rise today, fueled by optimism surrounding ETF applications submitted to the SEC by institutions. The first application was filed by the world's largest investment fund, BlackRock. Bitcoin is up 6.0% and has surpassed $30,000, while ETH has gained slightly less at 4.5% and is trading around $1,860.
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In the oil market, solid gains are observed today. However, it should be noted that the API report on crude oil inventories will be released in the evening, which is expected to show a decrease of 0.4 million barrels.
Silver prices have reached a new local minimum today. However, in the past few hours, there has been an attempt at a rebound. The price is trying to stay above the low from May 25th. If a demand signal appears here, it could lead to a corrective uptrend. Otherwise, the sell-off may deepen towards external Fibonacci retracement levels. Source: xStation5
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