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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