July 6, 2017 – Market Update (Trump in Poland, EUR – lower global use on high hedging cost, EURUSD – focus on Minutes & 1.1300 with lots of expiring options, USDZAR – central bank to be nationalized, Gold supported by geopolitical risks, ExxonMobil, Shell, Total courting Qatar gas, Volvo – green from 2019, Nokia sharing patents with Xiaomi)

Mr Price Action/ July 6, 2017/ Market Update, Market Update Posts/ 0 comments

 

Short recap

 

Asia mostly in red

Europe opening higher

Trump in Poland to reassure about commitment to Eastern Europe through gas and military support

Before meeting with Putin

Also to outline the future relationship with Europe as such

FOMC Minutes show a split and no timing on balance sheet reduction

US ready to use force against North Korea but looking for a diplomatic solution

EUR experienced lower use as international currency and as a funding currency last year

Due to high hedging cost against its decline using swaps

 

Equities

 

ExxonMobilShellTotal getting closer to win the big share of a Qatar gas pie despite local tensions

Vantiv buying Worldpay for USD 10 bln

Marc Cohodes known for his short selling activities now targets Exchange Income after taking on Valeant and Home Capital previously

Stating that rich dividend is not supported

Novo Nordisk having some safety issues with insulin pens in Canada

Nokia signing a patent deal with Xiaomi (guys don’t forget that Nokia is sitting on thousands of patents that can/do bring a nice cash flow)

Car sharing biz getting tougher as Avis’ Zipcar leaves Austrian market after Car2Go (Daimler) and DriveNow (BMWSixt) are tough to take on

Volvo to sell hybrid or electric cars from 2019 only

Such moves to create pressure within the industry as well as on auto parts producers

Tesla breaking down the rising trendline on lower demand

 

Bonds

 

10-yr Trys yield at 2.33%

10-yr Bund yield at 0.47%

 

DXY

 

Support at 94.70 (76.4% Fibo)

Resistance at 96.44 (61.8% Fibo)

 

EURUSD

 

Market watching 1.1300 (post election high) on the back of recent correction and today’s ECB Minutes

10 DMA at 1.1336 and 1.1344 (38.2% hourly Fibo) providing some support

Further resistance/support levels come from hourly Ichimoku

But large expiring options sitting at 1.1290/00 (EUR 2.1 bln), 1.1320/30 (EUR 1.5 bln)

 

USDJPY

 

Flat yields helped to mute the move higher

Resistance from declining trendline

Support at 112.24 (61.8% Fibo), 113.05 (76.4% Fibo)

 

USDZAR

 

Yesterday’s announcement of intention to nationalize the South African central bank which is privately held

Pushed the cross spiking to 13.5000

Resistance 13.4253 (200 DMA) and 13.5547 (23.6% Fibo)

Support 13.3166 (38.2% Fibo)

 

Gold

 

Getting support from geopolitical risks

After the sell off and JPY stabilisation

Support at 1214

Resistance at 1231 (200 DMA), 1234 (76.4% Fibo) and rising trendline

 

Data/Events

 

ECB Minutes

Fed’s Williams (0745 GMT)

ECB’s Praet (1000 GMT)

Fed’s Powell (1400 GMT)

Fed’s Fischer (2330 GMT)

 

July 7 – US NFPs

July 7 – Fed to publish its semi-annual report on mon pol (1500 GMT)

 

July 7/8 – G20 meeting

Trump meeting Putin while Merkel hosting them

Trump readying for a steel fight and withdraw from international talks on financial regulation

 

July 12 – Yellen testifying before Congress (prepared text to be released at 1230 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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