Short recap
Asia mixed after last week
EU markets opening lower
G20 take away:
Free trade short of support
Mnuchin to correct imbalances – but the simple
message to US is: “Consume less, Save more”
End of globalization trends? Or end of US on
globalization map?
Merkel and Abe showed strong support for
free trade on Sunday (after G20)
G20 outcome is negative for stocks
FOMC feelings still present in the market
Positive on EU stocks (if French elections
positive) but higher EUR is a risk
US stocks negative view, may be playing with put
options going to Q2
Deutsche Bank to issue news shares worth of EUR
bln as a part of strategy shift
Swiss Re to focus more on tailor made solutions to
generate more profits out of the deals
Tesla raised USD 1.2 bln to fund its activities,
especially Model 3 and battery production
The proof that investors are still interested
to participate at Tesla story via shares or convertible notes
Sinopec close to buying refinery from Chevron in
South Africa (USD 1 bln)
Bombardier still struggling to handle the deal
with Toronto Transportation Agency worth of CAD 770 mln
Oil – speculative shorts double while longs
were cut (COT report)
May be pointing to new weakening cycle in oil as
US shale production keeps rising
Critical levels: WTI USD 51.15 and Brent USD 48
Gold – also experienced net long positioning
cut by almost the half (COT report) going to FOMC last week
Risk to upside move higher on weaker USD,
geopolitical risks and huge demand from India
Levels: 1238 (61.8% Fibo), then targeting
last high at 1263
USD close to key support levels, trading below 100
DMA
DXY 99.26 (61.8% Fibo), H+S, descending support line
around 98.90
Few Fed speakers this week with Yellen (Thu)
can clarify the FOMC stance
Important event for USD will be Obamacare repeal vote on Thursday
If passed, likely USD supportive - a sign of Trump having support for his further policies
Important event for USD will be Obamacare repeal vote on Thursday
If passed, likely USD supportive - a sign of Trump having support for his further policies
EURUSD not clearly ready to break 1.0800/50 on
political risks ahead of French elections
But market keeps pricing out the risk of Le Pen
win despite her advances in the polls
Security question back on the table after shooting
at the airport in Paris
10-yr Trys yield at 2.49%, failed to break clearly
2.60% level again
Back to 2.30%-2.50/60% range
Bund yields rising at short end while longer end is
unchanged
10 bps rise in EZ rates by Jan 2018 is already
priced in
Visco (ECB) – rising rates and terminating QE can be
closely linked
Data
EZ: Labour Cost Index – expected to go higher
US: Chicago Fed National Activity Index – expected to go
higher
France – election debate tonight
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
Posts
