May 26, 2017 – Market Update

Mr Price Action/ May 26, 2017/ Market Update, Market Update Posts/ 0 comments

 

Short recap

 

Asia down as OPEC disappointed the market by not delivering what traders hoped for

Cut extended for 9 and not 12 months, expected deeper cuts

Oil was down 5% and still heavy today

Europe opening lower

 

Risk off continues on OPEC, lower yields and dovish Bullard (inflation worrisome, Fed aggressive)

Looking forward to balance sheet reduction in H2

 

Trump’s son-in-law who is a part of his senior advisers team is under FBI investigation over Russia

USD 20 bln Blackstone-Saudis deal underlies how important Blackstone is for Kushner’s family

As they borrowed from the company few hundred mlns and company worked on their NY mansion

 

Moody’s – China not able to curb the debt, risk of another downgrade

China to change Yuan fixing formula to adjust for lower volatility

China not to pursue a competitive devaluation

 

UK consumers hit by rising prices

UK’s May falling in polls, GBP down

 

Equities

 

Full “bail in” talk of regional banks Popolare di Vicenza and Veneto Banca

Denied by officials

GM facing a lawsuit over emissions

Ford behind GM in new models

Canadian banks don’t see the threat to their business from fallout of Home Capital

 

Bonds

 

10-yr Trys yield at 2.25%%

10-yr Bund yield at 0.36%

 

Fed funds rate vs EURUSD  link

EURUSD

 

Offers around 1.1250-60

Still lots of bid below

1.1314 (76.4% Fibo)

1.1128 (61.8% Fibo)

 

USDJPY

 

Bids towards 111.50, more towards 111.00 – range with heavy option expiries as well

Offers may be present going to 112.00

50 DMA at 111.25 and 50% Fibo at 111.24 acting as support

 

Iron ore

Inventories highest since 2004 (136 mln tonnes)

Important support 450

 

Data

 

G7 meeting (growth, employment, security)

ECB’s Coeure (2000 GMT)

 

May 31 – former FBI director James Comey to testify before Senate

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

 

 

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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