Short recap
Asia up despite cyber attack and North Korea
Europe opening higher despite more cyber attack threats
Chinese Belt and Silk Road initiative uniting
Asia, Africa and EU versus Trump’s America first
ECB’s Weidmann – Macron’s win and strengthening
recovery sets ECB to unwind the ultra-loose policy
But inflation needs to be more sustainable
Fed’s Evans – to start balance sheet reduction at
the end of 2017 and can take 3-4 years
Low volatility – need to wait for business cycle
reversal to see the volatility spiking as political or security risks are not
good enough reasons
Equities
HFs, MMs and top investors to reveal
their Q1 regulatory fillings of their purchases/sales of stocks
Would be very interesting reading with respect to Trump
trade
Dassault Aviation looking at new contract next
year
Lidl to make a footprint in US this summer
GE supporting NAFTA, to continue growth in Mexico
And double its purchases from there
Spotify to launch listing on NYSE (USD 13 bln)
AstraZeneca up on lung cancer drug trial results
Lilly confident with migraine treatment results
Home Capital planning asset sales to repay CAD 2
bln loan
CIBC got green light to buy PrivateBancorp
No more upfront bonuses from BoAML
Bonds
10-yr Trys yield at 2.33%
10-yr Bund yield at 0.39%
June hike probability down to around 78% from above 90%
DXY
USD stayed quite resilient despite weaker US data, yields
and political mess in US
Needs better Q2 data and Washington to deliver
Otherwise the 1.1022 (FR election high will be in focus)
Resistance 99.26 (Fibo 61.8%), 99.18 (200 DMA), 99.08 (10
DMA)
EURUSD
EUR net specs turned long 1st time since May
2014
EZ data and Merkel’s advance supportive
Had bit of consolidation above 200 DMA at 1.0824
Selling area may be around 1.0950/75 ahead of rising
trendline at 1.0982
Interest to buy likely towards 1.0830/40
61.8% Fibo at 1.0933 acting as resistance
10 DMA at 1.0918
USDJPY
Resistance 113.76 (76.4% Fibo)
Offers likely around 113.50 and towards 114.00
Support at 113.20 (10 DMA), 112.97 (100 DMA) and 112.68
(61.8% Fibo)
Gold
Was on the way toward 1200 but North Korea, weaker US
data and unpredictability of Trump stopped the move
COT report – no selling/increase of shorts just longs
liquidation
Resistance at 1245 (200 DMA), 1255 (61.8% Fibo)
Support at 1230 (50% Fibo & 10 DMA)), 1228 (100 DMA)
and 1204 (38.2% Fibo)
Oil
Russia, Saudis supporting 9-month cut deal extension
Oil run on short-covering only
Floating storage down by 1/3
Chinese eying oil and gas from US
Chinese steel production at record high (to
benefit from rising prices) while demand flat
Despite gov attempts to curb production
Upcoming
Speakers:
Nouy (ECB), Dombret (Buba) 1050 GMT
Praet
(ECB) 1145 GMT
Angeloni
(ECB) 1645 GMT
Tue
ECB’s Nowotny, Coeure speaking
Thu
ECB’s Mersh speaking
Fed’s Mester speaking
Fri
ECB’s Constancio speaking
Fe’s Bullard speaking
May 25 – OPEC/Non-OPEC meeting
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 – market pricing rate hike
above 78%
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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