Short recap
Asia in green as techs were inspired by Apple’s earnings
Europe opening higher1
BoJ on a halfway to 2% inflation, must keep
powerful QE in place
Structural reforms needed to boost inflation
Trump to address some China trade practices
Iron ore down 1.8% after three day rally
(seems not sustainable) and reaching USD 70 per tonne
As it was on the back of Chinese steel producers just pre
stocking
Drop to USD 50 may follow
Sep debt ceiling debate/vote coming
Plenty of USD liquidity supporting risk assets
Equities
Drop in car sales a risk for US economy
Lots of leased cars coming back to market, so automakers
will face tough times
But stellar earnings from EU and US keep supporting
stocks
Banks not happy with low volatility as it takes
the bond trading profits down
Silicon Valley startups facing more pragmatic
approach from investors, thus less money
Societe Generale putting EUR 300 mln aside
BP in talks with green car producers to offer a
battery charging at its gas stations worldwide
Earnings
Apple surpassed expectations yesterday, hitting
all time high in after market
Still struggling in China but moving focus from cars over
to autonomous software and all around
Today reporting: MetLife, AIG, Time Warner, Symantec,
Molson Coors, Tesla among others
Tesla – market is expecting a rise in revenue but
not turning to profit will take time. Model 3 to be a drag for the time being.
Bonds
10-yr Trys yield at 2.27% vs 2.30% yesterday –
down on US politics and North Korea
10-yr Bund yield at 0.48% vs 0.54% yesterday
Both Trys and Bund yields felt overnight
Situation in Venezuela getting worse
Sharply falling bonds just reflect the risk of potential
sanctions to oil industry
DXY
Strong support at 92.64 and 91.88, weekly close crucial
for further direction
Levels correspond with 1.2000 level in EURUSD
Combined with 200 WMA at 92.37 helped to support USD over
the last 2 years
Likely to have attempts to break these levels
Source: Saxo Bank
EURUSD
Sentiment is on cautious side at these levels, market
reassessing how USD is actually weak
Not likely to move to 1.2000 without any new USD negative
news
What’s coming first? Trump or NFPs?
Support 1.1721 (10 DMA), 1.1785 (200 WMA) – to watch
weekly close above 200 WMA
Closing below 10 DMA would make bullish momentum weaker
Resistance 1.1200 more psychological of nature
USDJPY
Small hurdle at 110.50
Resistance 110.97 (61.8% Fibo)
Support 110.14 (76.4% Fibo)
Bids sitting at 110.00, stops likely below 109.90
Data/events
ECB Governing
Council meeting
Fed’s Mester (1600
GMT)
Fed’s Williams
(1930 GMT)
Fri
US NFPs – 173k exp
Aug 24-26 Jackson
Hole
Draghi’s show up
highly expected in the light of potential tapering
Any clues on EUR 60
bln monthly purchase being taken down o 40…or?
Sep 7 - ECB
Sep 19-20 FOMC
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
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