Short recap
Asia lower
Europe opening lower
FOMC – more hawkish than expected
Inflation expectations adjusted but Yellen sees a good
ground for prices to keep rising
Likely start to taper in Sep, another rate hike in Dec
Some may ask why Fed doesn’t want inflation to overshoot
Trump under investigation for obstruction of
justice
Looks like they are still trying to find something on him
or is he really such a mess…?
ECB’s Nowotny questioning 2% inflation target as
tons of money still not pushing prices to the target
Equities
Nokia entering the router market, where Juniper
and Cisco do well, by launching the fastest network chips
Rosneft going offshore
Private equity eager investors pump USD 7 bln to new fund
from Goldman Sachs
Bank of America sees opportunities in
international cash management
US banks eying Saudi’s market as Morgan Stanley and Citi
are there, and Goldman Sachs applying for a license
Looks like few reforms, upcoming Aramco IPO, Trump’s
visit can make Saudi Arabia an investment destination
Google reached an agreement with Indonesia over
future tax payments (I like this one…who wouldn’t like to cap the upcoming tax
bill)
Thomson Reuters launching a set up to offer its
data flow via blockchain technology
So the firms can use Ethereum and Corda based trading
systems with Reuters data
US financials, especially life insurers, to
benefit from rising rates
While utilities, telcos and real estate
on short term negative side
Resources stocks to offer an interesting value
In particular energy but need some credit events
and cleaning within the space
Canadian Natural Resources, AltaGas, Roxgold
can be looked at
Bonds
10-yr Trys yield at 2.14% - yield development is crucial
for further direction of EURUSD and USDJPY
10-yr Bund yield at 0.23%
EURUSD
What’s next? 1.0500 again or 1.1500? …asked the questions
yesterday but today too…
Consolidation lower after FOMC is on the cards
Resistance at 1.1231 (10 DMA) with sellers sitting around
Then 1.1300 (based on FOMC price action)
Support at 1.1200, 1.1180 (23.6% Fibo) and 1.1120 (38.2% Fibo) but strong at 1.1013 (61.8% Fibo)
USDJPY
Bids sitting between 109-109.50
Offers seen going to 110.00
With decent options expiring today and tomorrow at this
level
Crucial resistance at 110.50 (61.8% Fibo) and 110.61 (200
DMA)
Support at 109.60 (76.4% Fibo), then at 108.12
Upcoming Data/Events
Basel Committee concluding meeting over bank rules
ECB’s Draghi and Coeure at Eurogroup meeting
Greece – any resolution? Again at least temporary?
Fri – Fed’s Kaplan speaking
June 18 – French Legislative (Parliamentary) elections
June 19 – Brexit
talks starting ?
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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