Short recap
Asia down inspired by US session after another delay of
healthcare bill vote
Europe opening lower
World coping with another cyber attack – a new era
to come?
Draghi replaced deflationary forces by reflationary
ones and pushed EUR higher
Sounds like woo-doo to me when we talk about “forces”…
But overall his speech was in line with dovish policy.
More link
Yellen was out with “no new financial crisis in
our lifetime” comment, meaning as long as she is alive. More link
Healthcare reform vote delayed as Republicans
score a goal to their own net
Bonds and equities on defensive overall
yesterday what makes an interesting risk off combination
Carry trades to suffer, thus EM and high yield DM not to
do well if current setup continues
Equities
Techs, biotechs and EM bleeding
Nestle to buy back CHF 20 bln worth of shares over
3 years
Option traders looking at AstraZeneca from a short
side as the market positions itself for lung cancer trial results
Alphabet hit by EUR 2.4 bln fine from EU for
abusive behaviour in search engine
Not effecting long term business as the fine is just 3%
of cash/1.5 month of cash flow
Facebook at 2 bln user mark, doubling since 2012
Syngenta (owned by Chinese) interested in Bayer
assets that need to be sold
As a part of Monsanto takeover deal
Bonds
10-yr Trys yield at 2.22% vs 2.14% yesterday
10-yr Bund yield at 0.39% vs 0.25% yesterday
DXY
Support 95.90, then 94.70 (61.8% Fibo)
Resistance 96.44 (50.0% Fibo)
EURUSD
Market was caught by surprise with Draghi’s reflationary
forces comment
What was also confirmed by price action
If we see the 1.1295/1300 holding, we are likely marching
through 1.1400
But the historical supply range comes towards 1.1500 (check the weekly chart)
Central bankers to drive the show today too
Support at 1.1366, 1.1300
Resistance at 1.1400, 1.1415/30, 1.1464, 1.1500
Weekly chart (Source: Saxo Bank)
Daily chart (Source: Saxo Bank)
USDJPY
Dip buying as a strategy? As some may see carry trade
going to summer pushing JPY lower
Exporters holding sell orders at 112.50
Bids towards 112.00, more below
Support 111.80 (100 DMA) and then 111.50 with USD 2.5 bln
option expiring
Resistance 112.24 (61.8% Fibo), 113.05 (76.4% Fibo)
Data/Events
Fed’s Williams
(0730 GMT)
Central bankers
meeting in Portugal:
ECB’s Mersch (0900
GMT), Lautenschlager (1045 GMT), Constancio (1130 GMT), Draghi (1330 GMT),
BoE’s Carney (1330
GMT)
BoJ’s Kuroda (1330
GMT)
BoC’s Poloz (1330
GMT)
Thu
Fed’s Bullard (1700
GMT)
US Trade deficit
report to be released –
what accusations can we expect?
July 7/8 – G20
meeting – will Trump meet with Putin?
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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