Short recap
Asia in red
Europe opening lower
Flash crash in Silver
Trump to meet with Putin
Very good US NFPs numbers may trigger collapse in
bonds and stocks
As the risk of rising rates further will all implications
will be higher
ECB Minutes with some tightening of financial
conditions
Central Banks’ Reversals Signal the End of One Era and
the Beginning of Another (Bridgewater CIO) link
Equities
EZ stocks under pressure from higher rates and
stronger EUR (like capital/debt intensive utilities)
But banks/financials doing well
In general financials (higher profits), health care
(defensive play), consumer staples and techs (low debt) generally doing better
China pushing GM, Mercedes and Volkswagen
to recall vehicles with air bags produced by Takata
Volvo selling 25% stake in Deutz
Berkshire to buy Oncor (utility)
Microsoft to cut 30k jobs (mostly outside US)
Dish Network and Amazon.com in talks about
partnership
Knee surgery done by robots? Top medical techs working
on…
Axis Capital to buy Lloyd’s Novae
EU to fine Merck, GE and Canon
Celgene and BeiGene agree on tumor cancer
treatment cooperation
Bonds
BoJ to purchase an unlimited amount of 10-yr bonds
at 0.11% yield
10-yr Trys yield at 2.39% vs 2.33% yesterday
morning
10-yr Bund yield at 0.57% vs 0.47% yesterday
morning
Broke an important 0.50% level, next is 0.60% and 1.00%
Looks like the move higher in core EZ bond yields
comes from ECB
As it has not purchased assets fully in line with
allocation key
What in turn supports EUR
Higher gov bond yields represent a risk for
bonds with long durations and EM as such
EURUSD
Bounced off the pivot 1.1300 (post election high)
As mentioned on Monday getting way over 1.1600 not
sustainable
Trading right below strong resistance from descending
trendline and 1.1445, then 1.1615 high
If above resistances are broken we can eventually get
ready for a move towards 1.2000/1.2500
With first target at 1.1714 (1.1750)
In order to look at 1.1580 need get through 1.1450
On the top of very strong resistance range
1.1400, 1.1344 (38.2% hourly Fibo) and 10 DMA at 1.1365
providing some support
But bear in mind that financing long EURUSD positions is
pretty expensive swap wise
USDJPY
Pretty resilient in risk off mood
Broke descending trendline
Resistance at 114.36 high
Support at 113.05 (76.4% Fibo)
Gold
Getting support from geopolitical risks
Support at 1214 low
Resistance at 1231 (200 DMA), 1234 (76.4% Fibo) and
rising trendline
Data/Events
US NFPs
Payrolls 179k exp
vs 138k prior
Unemployment rate
4.3% exp vs 4.3% prior
Earnings 0.3% exp
vs 0.2% prior
Participation …. vs
62.7% prior
Fed to publish its semi-annual report on
mon pol (1500 GMT)
July 7/8 – G20
meeting
To discuss
terrorism, free trade and climate
Trump meeting Putin
while Merkel hosting them
Trump readying for
a steel fight and withdraw from international talks on financial regulation
July 12 – Yellen
testifying before Congress (prepared text to be released at 1230 GMT)
July 20 – ECB
meeting
July 26 – 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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