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16th Jun 2021. 7.44am

Regency View:

Morning Report – Wednesday 16th June

FTSE to open at 7185 (+13pts)

Today will be dominated by the Federal Reserve as it releases updated economic projections this evening, along with a press conference from Chairman Jay Powell.

Whilst the US central bank is widely expected to maintain its $120bn of monthly bond purchases, traders will be watching closely for clues on the future path of monetary policy.

An upgrade to the Fed’s economic outlook is likely and this may pull forward their projections for the first rate hike to 2023 (from 2024).

Jay Powell’s comments on US consumer price inflation hitting 5% in May is also likely move the markets, especially given the recent shift towards the belief that inflation will be transitory – as indicated by a drop in US 10yr bond yields.

S&P 500-0.20%Bearish for UK stocks
Hang Seng-0.50%Bearish for UK stocks
Gold+0.11%Neutral for UK stocks
AUD/JPY+0.17%Bullish for UK stocks
US 10yr Yield-0.25%Neutral for UK stocks
Regency Risk Barometer Snapshot

The FTSE spent a second day flirting with the March swing highs yesterday…

Futures prices closed just above the swing resistance level, although remained below Tuesday’s pin bar high.

Yesterday’s range was fully contained within Tuesday’s range – forming an ‘inside day’ pattern and indicating that a directional move could be on the way ahead of this evening’s comments from the Fed.

FTSE 100 Daily Rolling Futures – Key Levels

FTSE 100 Daily Rolling Futures – Key Levels
Final Results
Best (BOTB)
Castings (CGS)
Trading Announcements
Origin (OGN)
UK Economic Announcements
(07:00) Consumer Price Index
(07:00) Producer Price Index
(07:00) Retail Price Index
International Economic Announcements
(12:00) MBA Mortgage Applications (US)
(13:30) Housing Starts (US)
(13:30) Import and Export Price Indices (US)
(13:30) Building Permits (US)
(15:30) Crude Oil Inventories (US)
(19:00) FOMC Economic Projections
(19:00) Fed Interest Rate Decision
(19:00) Fed’s Monetary Policy Statement
(19:30) FOMC Press Conference
Today’s Financial Diary

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This research is prepared for general information only and should not be construed as any form of investment advice.