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HEADLINE PACKED DAY

Today had potential for volatility with a heavy news schedule and fireworks were certainly present in the afternoon.

US COVID cases are jumping higher, with Texas hospitalisations hitting a new record and Arizona new cases up 6.5% v's 2.8% expected and Beijing is raising its alert status amid a new outbreak.

In his testimony, Powell indicated that corporate bond buying is more of a contingency rather than something the Fed will carry out aggressively.

Though there was a major drop in risk, with SP500 at one point dropping around 3% from the highs, most of the move has been recovered, helped by more rumours of a new $1trn+ stimulus planned from the US government.

The Vix is still drifting through the 11th June spike, though overall price ranges are higher than the rest of the risk rally so far - an ominous sign.

Consumer Price Index DAY

0700 : GBP UK CPI

1000 : EUR European CPI

1000 : EUR ECB's Mersch speech

1200 : EUR ECB's De Guindos speech

1330 : CAD Canadian CPI

1330 : USD US Building Permits

1700 : USD Fed's Powell testifies

2345 : NZD New Zealand GDP

OIL SHOWS WEAKNESS

All risk assets took a hit today at a key moment, particularly oil which was breaking out of consolidation and past the last failed reversal in the March drop.

Follow through in oil tomorrow will add to the bearish tint in the market that has been holding heavy since the Fed last week.

USDCAD is unchanged on the day and if the oil is heavy tomorrow, this could give CAD another bout of weakness.

#powell #FED #sp500 #ES #oil #chair #COVID19 #USDCAD #CPI #Inflation

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