(15 JUNE 2020)DAILY MARKET BRIEF 2:The stronger US dollar

<p>In the FX, stronger demand in US treasuries and the dollar should lead to a decent profit taking in most majors which have surfed the weaker USD wave over the past weeks. Having pulled out the minor 23.6% Fibonacci retracement on April – June rise, the EURUSD could extend weakness to 1.1160, the major 38.2% retracement, which should distinguish between the actual positive trend and a medium-term bearish reversal. The stronger US dollar will likely throw Cable below the 100-day moving average (1.2455). Meanwhile, the latest CFTC data suggest that the net short speculative positions in sterling continue rising as a sign of a stronger selling pressure in the foreseeable future. Looking at the historical data, the market could easily absorb a further increase in sterling short positions as a result of increased no-deal Brexit bets. On Thursday, the Bank of England (BoE) is expected to leave rates unchanged but step up its asset purchases by 150 billion pounds. WTI crude plunged 4% on Monda</p>