Mar 9, 2017 - Market Update

Short recap

China PPI higher, CPI lower

Novo Nordisk bidding for Global Blood Therapeutics

Akzo Nobel considering a merger or sale, now in talks with PPG Industries

Suez acquiring GE Water (EUR 3.2 bln)

AIG to relocate HQ for EU market to Luxembourg due to Brexit

Senior level positions as well, but no details yet

Technology companies to prepare fixes in the light of CIA spying revelations

But how deep their pocket is or how truly willing are they?

Trump in a search for money for infrastructural projects

Meeting with private real estate developers and business people (Elon Musk as well)

Brexit – 2^nd Scottish independence referendum may take place in the fall next year

No final decision yet

Oil dropped on further US inventories build up due to rising imports

Especially from Saudi Arabia, a warning shot for OPEC deal

Overall risk reduction across commodity sector after recent extreme speculative position building

Development in energy may be a leading signal for stocks

Data

US: Job Cut Report – expecting further slowdown in layoffs

ECB – Draghi doesn’t want say or do anything (that’s the message at this point)

Ahead of elections in NL and FR despite political risks fading

Expecting just some verbal tweaks on QE, bond buying, may be touching maturities

Markets to search for any hints on rising prices, better macro data and future of QE

No major change expected despite Buba seeing world differently

Will be difficult for Draghi to say nothing but let’s see…

EURUSD – overall dovish view hasn’t changed

If markets take Draghi’s comments from hawkish side

We may see spike on higher bond yields across EZ

Yield rise likely disproportionate what in turn will be negative for EUR

EURUSD daily levels:

3^rd res 1.0605

2^nd res 1.0589

1^st res 1.0565

Pivot 1.0550

1^st sup 1.0526

2^nd sup 1.0510

3^rd sup 1.0486

USDJPY daily levels:

3^rd res 116.03

2^nd res 115.39

1^st res 114.88

Pivot 114.24

1^st sup 113.73

2^nd sup 113.09

3^rd sup 112.58

Fri:

US NFPs – headline figure, unemployment rate not that important

Earnings is the number to look at if no bad surprise in headline

All is about Average hourly earnings after January drop

Important for future rate hikes pace

Market pricing June hike at 52%

DXY not reflecting fully positive US macro data

10-yr US Trys at 2.57% on the way to break 2.60%

From technical perspective closing above 2.55% will open further door higher towards 2.80% potentially towards 3.00%

Bill Gross on breaching 2.60%: “This will signal the start of a bear market, should it hold on a weekly basis”

Source: Reuters

Should you have any questions feel free to contact me anytime.

Good luck Champs!

Mr Hawk

DISCLAIMER: This material was created for informational purposes only and represents the Land of Trading team’s view of the past and current economic and capital market environment. It is not an investment advice and should not be viewed that way at all, and the creators of this material cannot be held liable for any potential losses resulting from trading, where despite this disclaimer someone would consider this material as an investment advice. All rights reserved ©2016. Contact: landoftradingATgmailDOTcom