Friday 26 May 2017

May 26, 2017 - Market Update

Short recap

Asia down as OPEC disappointed the market by not delivering what traders hoped for
Cut extended for 9 and not 12 months, expected deeper cuts
Oil was down 5% and still heavy today
Europe opening lower


Risk off continues on OPEC, lower yields and dovish Bullard (inflation worrisome, Fed aggressive)
Looking forward to balance sheet reduction in H2

Trump’s son-in-law who is a part of his senior advisers team is under FBI investigation over Russia
USD 20 bln Blackstone-Saudis deal underlies how important Blackstone is for Kushner’s family
As they borrowed from the company few hundred mlns and company worked on their NY mansion

Moody’s - China not able to curb the debt, risk of another downgrade
China to change Yuan fixing formula to adjust for lower volatility
China not to pursue a competitive devaluation

UK consumers hit by rising prices
UK’s May falling in polls, GBP down

Equities

Full “bail in” talk of regional banks Popolare di Vicenza and Veneto Banca
Denied by officials
GM facing a lawsuit over emissions
Ford behind GM in new models
Canadian banks don’t see the threat to their business from fallout of Home Capital

Bonds

10-yr Trys yield at 2.25%%
10-yr Bund yield at 0.36%


Fed funds rate vs EURUSD  link


EURUSD

Offers around 1.1250-60
Still lots of bid below
1.1314 (76.4% Fibo)
1.1128 (61.8% Fibo)

USDJPY

Bids towards 111.50, more towards 111.00 – range with heavy option expiries as well
Offers may be present going to 112.00
50 DMA at 111.25 and 50% Fibo at 111.24 acting as support

Iron ore
Inventories highest since 2004 (136 mln tonnes)
Important support 450

Data,

G7 meeting (growth, employment, security)
ECB’s Coeure (2000 GMT)

May 31 – former FBI director James Comey to testify before Senate
June 8 – ECB meeting
June 8 – UK elections
June 11/18 – French Legislative (Parliamentary) elections (a big question mark for Macron to gain majority)
June 13/14 – FOMC meeting


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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