Feb 22, 2017 – Market Update

Mr Price Action/ February 22, 2017/ Market Update, Market Update Posts/ 0 comments

 

Short recap

Asian markets on positive note

EU to open higher

BoJ planning to be more transparent with announcing specific dates for bond buying operations (likely to avoid recent surprise moves)

Kuroda: ready to easy more

US Treasury Secretary Mnuchin-IMF Lagarde: IMF to evaluate FX levels and police FX policies

Fed Mester – at full employment, prices raising but don’t want to surprise the markets

US VP Pence delivered the marketing message of support for EU and NATO this weekend

But week earlier Chief Strategist Bannon had a different view

Spain is really firing at all cylinders with 2016 exports of EUR 255 bln from EUR 160 bln in 2009

Proof that the reforms they did earlier with weaker EUR work well for them

 

DAX to push higher behind 12 000 mark on strong data

US stocks with strong momentum but getting overvalued

Usually stocks grow with rising bond yields until 10 yr US Trys hit the levels around 3.9%

So there is still room but since US election we’ve got too high to fast

 

Daimler planning to build a plant near Moscow to produce Mercedes-Benz cars

It is a first major investment after announcing sanctions

Verizon agreed with Yahoo on lower takeover offer due to cyber attacks on Yahoo

 

EUR weakness not USD strength

Daily pivot: 1.0558

1st daily support: 1.0502

2nd daily support: 1.0468

3rd daily support: 1.0412

76.4% Fibo: 1.0455, the level 1.0450/60 next strong support range

Low from 1997 at 1.0416

Then the lows of 1.0340 only

 

Gold weakness seen more against EUR than USD

XAUEUR printing new highs

 

Brent crude getting tighter as we get closer to potential squeeze

As calendar spreads for upcoming expiries rose substantially

What in turn can make the storing of oil outside US a losing trade

 

10 yr US Trys yields lower on softer PMI data yesterday but erased the loses later on

Currently at 2.45%, still below important resistance at 2.51/52%

GE-FR spread hitting 78 bps again on Le Pen

 

Data

GE: Ifo Business Climate Survey – to confirm the overall strength of GE economy, no big surprises expected

US: Existing Home Sales – set to surprise on positive side

 

FOMC Minutes – markets still not taking the Mar 15 meeting seriously despite Yellen’s testimony from last week

Minutes can shed a bit more light on whether Fed is eyeing to raise rates in March

 

Fed Powell speaking today, as he is a possible successor of Yellen

It is worth to watch him as he may provide additional clues on March hike amid strong figures from US

 

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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