June 13, 2017 - Market Update

Short recap

Asia up

Europe opening higher

EU not happy with lack of clarity on UK side

Working on moving trading and clearing of EUR denominated assets out of UK

Basics of financial reform in US unveiled

Equities

US techs heavy yesterday but got some bids at the end of session

Is a 4% correction enough?

Material stocks can be back in vogue on copper break…

Hong Kong listed stocks trade at 30% discount to US peers

While offering attractive yields

Risk is China data

GE to review its business activities as the new CEO comes in

Bit of financial world…UK financials keep moving staff out of UK despite softer Brexit talk

LSE expecting profit growth to be driven by indices and clearing

Allied Irish Banks to sell 25% stake to rise EUR 3.3 bln

US banks launching their own payment app to compete with peer-to-peer Venmo

Honeywell to spin off profitable aerospace

Slovakian ESET and US Dragos warn of a malware that can attack critical infrastructure

That was behind last year’s Ukraine power blackout link

Bonds

10-yr Trys yield at 2.21%

10-yr Bund yield at 0.25%

BoJ slowed down bond buying as the rising yields stabilized

As the US Trys yields have fallen

DXY

Nothing new from yesterday…

Should FOMC keeps hawkish wording, USD to benefit

If not, USD sell off to be small and short

Support at 96.44 (61.8% Fibo)

Resistance at 97.85 (50% Fibo), followed by 99.26 (38.2% Fibo)

EURUSD

Seems soft ahead of FOMC

Resistance at 1.1200, 1.1232 (10 DMA), 1.1284, then 1.1300

Support at 1.1180 (23.6% Fibo) and 1.1114 (38.2% Fibo)

USDJPY

US yields lending some support

Lots of offers above 110.00, more above 110.50

Large options with strike 110.00 expiring today

Crucial resistance at 110.50 (61.8% Fibo) and 110.54 (200 DMA)

Support at 109.60 (76.4% Fibo), then at 108.12

Gold

Double top

Resistance at 1275 (10 DMA), 1276 (23.6% Fibo)

Support at 1264 (38.2% Fibo), 1261 (50 DMA), 1255 (50.0% Fibo)

Eventually, 1245 (61.8% Fibo and 100 DMA) depending on how hawkish FOMC wording will be

Upcoming Data/Events

GE: Schaeuble speaking

ECB’s Weidmann speaking

ECB’s Lautenschlager 1000 GMT

Tue/Wed – FOMC meeting

Dovish hike priced in

Market can get surprised if Fed keeps talking hawkish

Forward guidance critical (Yellen holds a press conference)

Economic projections to be released

Thu/Fri – EcoFin meeting to discuss Greece

Fri – Fed’s Kaplan speaking

June 18 – French Legislative (Parliamentary) elections

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

Good luck Champs!

Mr Hawk

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