July 27, 2017 – Market Update (FOMC on summer vacation, playing safe, DXY close to support levels, EURUSD close to 200 WMA (1.1794), Gold/gold miners going higher? Heavy Deutsche Bank, Facebook enjoying the ride, Cameco – weak uranium price making heavy print)

Mr Price Action/ July 27, 2017/ Market Update, Market Update Posts/ 0 comments

 

Short recap

 

Asia up on dovish feeling Fed (stocks, bonds and commodities up)

Europe opening flat

ECB’s Nowotny – some room to reduce asset purchase from Jan 2018 but not stopping them

EU warned US over new sanctions against Russia as energy security is on the table

UK’s Rudd promised to keep access for EU workers

UK’s car industry production down 14% in June

US New home sales still growing but at a softer pace

 

FOMC – on summer vacation

Market feeling a dovish bias and lower likelihood of another 2017 hike

Balance sheet reduction to start relatively soon (market expecting announcement in Sep)

Repeated that inflation to rise to 2%

But admitted undershooting of 2% target

 

Equities

 

Daimler thinking about splitting some divisions

Third Point betting on Alibaba again as they see opportunities

No new sales of petrol/diesel cars in UK from 2040

Deutsche Bank to list its asset management arm but not before late 2018

Foxconn to build a new plant in US (3000 new jobs)

AGCO buying farm equipment division from Monsanto

 

Earnings

 

Samsung pretty comfortable with chip outlook, reported a record profits

Facebook doing well in mobile ads (up 50%), while strengthening its attraction as a social media

 

Amazon.com – to report better revenue supported by retail and cloud. Hungry a bit? What about the Whole Foods Market acquisition – any hints?

Procter & Gamble – organic sales should help the numbers

Celgene – investors are positive, would like to learn more on licensing deal with BeiGene

Cameco – results to be impacted by still ongoing fall in uranium prices. Market may also be interest in the progress/resolution of Tepco issue?

MasterCard – investors are positive

Intel – investors are positive by data center business will scrutinized

Twitter – market is expecting a decline in revenue on user growth stagnation

Deutsche Bank – investor worry about the results as the bank undergoes restructuring, Brexit and Trump Russian ties. All of that is also combined with ECB’s investigation of Qatar royal family and Chinese HNA who are bank’s largest shareholders.

 

Bonds

 

10-yr Trys yield at 2.28% (up)

10-yr Bund yield at 0.55% (down)

 

DXY

 

Offered tone, sentiment getting more bearish

As cautious Fed and political mess in Washington pressure USD

Close to support levels

 

EURUSD

 

Marching higher, no clear top yet, outside day reversal

Watching: 1.1750, 1.1794 (200 WMA), 1.1810 (38.2% Fibo) and then 1.20/2200

Likely 1.1800 will be respected as ECB to turn dovish soon too

On falling inflation and missing wage growth

So the 1.1750 and 200 WMA may be seen as the top

Support of note 1.1615, then 1.1580

 

USDJPY

 

Pressured by lower US yields, long liquidate seen

Sitting on 111.00 with likely dip demand around 110.80

Option expiries between 111.00-111.30 (more than USD 1.7 bln)

Life insurers with lower interest in foreign bonds

Has some room to get and stay above 114.00 toward year end

 

Gold

 

Resistance at 1264 (38.2% Fibo)

Support at 1255 (50.0% Fibo)

Watch also ascending and descending trendlines

As it trades above 1250 (100 DMA) we may see opportunities from a long side

Not only in spot but also in gold mining stocks

On the back of low inflation, weak USD and Trump

 

 

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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