Short recap
Europe opening higher
Trump Jr – Russia blow here but markets focus on
Yellen
Trump administration constantly distracted, not focussing
on proper work
Gary Cohn Trump’s candidate to replace
Yellen
Fed’s Mester likes taper sooner rather than later
Merkel putting pressure on ECB to raise
rates
JPM’s Dimon – taper can caught people by surprise
Chinese media speculations – PBOC should widen the
2% CNY daily trading band
Funds kept selling USDCNH overnight
Quarels as a Trump Fed nominee getting first
oppose comments
Due to his ties to Wall Street and possibility that
oversight of huge banks would be softer
Moody’s – Lack of clarity in Brexit making question marks
around UK’s credibility
Equities
BlackRock - Investors need to take more risk link
Total to invest USD 3.5 bln in Qatar offshore oil
Siemens chasing their turbines in Crimea even
legally
Chinese banks underperformed their global peers
but offer lower valuations and decent yields
Regulators were out saying the risk is in control
Snap hit by downgrade from Morgan Stanley
(underwriter) on slower ad development
Instagram is biting in to Snap’s largest user base
among young
Bonds
BoJ increased bond purchases in 3-5 yr space
10-yr Trys yield at 2.35% but 5-yr/10-yr may
experience some correction after recent move higher (support around 2.30%)
10-yr Bund yield at 0.61% - sharp jump from around
0.55% after yesterday’s comments from Merkel
EURUSD
Merkel, Trump Jr. – Russia thing, dovish Fed comments
behind the move
1.1450 broken, on the way to 1.1580 as short term longs
were open
Likely looking at 1.1615 as long as 10 DMA (1.1407) not
clearly broken on dips
Next the 1.1714 and 1.1750 may come
Bear in mind that any rally above 1.1600 is way
overstretched and likely not lasting
All about Yellen today, watch especially her remarks on
inflation
But market is very very complacent about Fed moving…
USDJPY
Resistance at 114.36 high
Stops at 113.50 hit but dip demand helped
Support at 113.30 (10 DMA), 113.05 (76.4% Fibo),
descending trendline
Dips below 113.00 may be a good point to renter longs
But 112.00 level can serve as a stop level
Expiring options USD 1.3 bln between 113/114.00
Market is very long USDJPY but short gamma
And 50/100/200 DMA at 111.89/78/66 very close
Again all about Yellen today
Gold
Support at 1214 low held, no more technical selling
through
Resistance at 1231 (200 DMA), 1234 (76.4% Fibo) and
rising trendline
If broken along with 16.20 in Silver we can see more
short covering
But Yellen today again…
Data/Events
Yellen
testifying (1400 GMT)
before Congress Committees today/tomorrow (prepared text to be released at 1230
GMT)
Likely to confirm
the continuation of normalization
Do financial
conditions continue to ease
Job market and
inflation
Balance sheet
reduction – suspension of reinvestment policy coming announcement in Sep ?
Another rate hike
in Dec ? Currently priced at 49%
ECB’s Linde
ECB’ Dalhau,
Dombret
Fed Beige Book
(1800 GMT)
Fed’s George (1815
GMT)
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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