Short recap
Asia mixed
Europe opening higher
Saudi Arabia, Egypt and Bahrain cutting diplomatic
ties with Qatar over support of Iran (Islamic Brotherhood and Hamas)
Pushing oil more than 1% higher
All of that coming after Trump’s visit and security
threats (banning travellers or notebooks on the planes)
Russia sees oil down to USD 40
UK – attacks and risk of no majority government
increasing
It may weight on GBP as UK heads towards weaker
government mandate
ECB’s Visco – Italy down most in 10 years
High debt because of low growth but still the
average Italian household is wealthier the German one
Fed on track for June hike after weaker Friday’s
NFPs but further hikes in question
Unless we see a pick up in inflation and Trump coming
with positive fiscal news
Trump to come up with Dodd Frank revamp on Tuesday
But the reality is he doesn’t have enough votes in
Congress to push it through
Equities
Investindustrial and Alibaba likely to
submit a join bid for The Body Shop from L’Oreal
Blackstone selling Logicor to China
Investment Corp (EUR 12.25 bln)
KKR raised USD 9.3 bln in new Asia buyout fund
Exxon misleadig about climate change impact of its
business
Pfizer to hike prices of some drugs in US by 20%
Goldman Sachs eying to trade Saudis stocks
Home Capital to face regulators on June 26
Bonds
10-yr Trys yield at 2.17%% (2.16% critical level, on
Friday closed below 200 DMA)
10-yr Bund yield at 0.27%
EURUSD
Resistance at 1.1284, 1.1300 (big level), 1.1355/65and
1.14/15/1600 range
Should see lots of hesitation ahead of 1.1300
Support at 1.1213 (10 DMA), 1.1200 and 1.1179 (23.6%
Fibo)
New trading range 1.1000-1.1500 ?
Morgan Stanley switching from end year 0.97 level
for EURUSD to 1.1800
On strong data, political stability, valuations and
equity market inflows
A very nice switch…
USDJPY
US yields taking the cross lower
Support at 200 DMA at 110.34, 110.10 (Ichimoku) and
109.60 (76.4% Fibo)
Bids sitting ahead of 110.00, with stops below
Resistance at 110.50 (61.8% Fibo), heavy level
New trading range 108.00-112.00 ?
GBPJPY - With GBP under pressure and strong JPY
double whammy possible here... looking for lower levels
AUDJPY - Are bears controlling the market?
Weekly Commodity: Oil and Sugar under pressure, Grains
in a vacuum Link
Upcoming Data/Events
June 8 – ECB meeting – Draghi being alone but
inflation data from US and JP suggesting ECB to carry on with ultra-loose
stimulus
ECB likely to adjust the risk to economy wording but no
change to asset purchases
June 8 – UK elections including Scotland, if
SNP/Sturgeon wins the independence referendum likely to follow
June 8 - Former FBI director James Comey
to testify before Senate
June 11/18 – French Legislative (Parliamentary) elections
(a big question mark for Macron to gain majority)
June 13/14 – FOMC meeting – Jun hike probability
at 95%, Sep at 28% and Dec at 40%. After Friday’s NFPs Sep hike may be skipped
if data doesn’t come strong.
June 15/16 – EcoFin meeting to discuss Greece
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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