Nov 10, 2017 – Market Update (US tax reform question mark, China to open financial markets/allow investments in companies, Trump with a promise of USD 250 bln deals with China, Brexit – Norther Ireland part of EU single market?, Cameco’s 10% production cut a new bullish trend in uranium?, Monsanto not linked to cancer, 10-yr Bund yields saw a significant jump, DXY to close around key levels, Brent above key 62.00, than 60.00 USD/bbl)

Mr Price Action/ November 10, 2017/ Market Update, Market Update Posts/ 0 comments

 

Short recap

 

Asia in red

Europe opening lower

US tax reform – a potential delay in corporate tax rate cut to 2019 pushed stocks in US and Asian lower

Trump sees current account deficit with China not acceptable, happy with deals worth of USD 250 bln

But overall friendly remarks on both sides

China to open financial markets and allow foreign investments in financial companies

Trump not meeting Putin at APEC conference

Brexit – Northern Ireland part of single market and customs union according to EU internal papers

China to cut corporate tax rates for high tech companies

 

Equities

 

Toshiba planning to raise JPY 600 bln from new shares in a hunt for cash to avoid delisting

Burberry looking more at high-end offering but at what cost?

PSA Group moving fast with pushing its own technology to Opel

Cameco cutting 10% of its uranium production on low prices

Is it a turning point in uranium market after it has lost almost 70% since Fukushima (2011) ?

Allianz’s profit down 17%

Keystone XL having commercial back up

Monsanto not linked to cancer

 

Bonds

 

10-yr Trys yield at 2.34% vs 2.33% yesterday

10-yr Bund yield at 0.37% vs 0.33% yesterday

Very significant jump in yields in Europe yesterday

 

DXY

 

US tax reform a question mark

Weekly close important as we sit above important levels

A continuation of inverted H&S or not?

Support 94.19 (23.6% Fibo), 94.05 (Aug 2016 low), 93.77 (100 DMA)

Resistance 94.62 (10 DMA), 96.03 (38.2% Fibo)

 

EURUSD

 

Market is quiet waiting for a new inspiration from next week’s US data

Consolidating above 1.1605 (50.0% Fibo), 1.1615 (high from May 2016), 1.1620 (200 HMA)

And below 1.1658 (200 WMA), 1.1670 and descending trendline connecting the lows of Oct 2008, Jul 2012

Expiring options (EUR 2.4 bln) with strikes between 1.1500/50

 

USDJPY

 

Quiet trading after not being able to break 114.50 few days ago on lacking US yield support

If we see the cross back above 114.00/25 you may consider rally continuation

But it has to be supported by US data next week

Otherwise if no pick up in 10-yr Trys yields towards 2.40% and above the return to 113.00 to come

Resistance at 113.76 (10 DMA), 114.40/50, 114.72

Support at 113.00, 112.97 (23.6% Fibo)

 

Staying above 112.60 may help bulls (from Thu):

 

 

Oil

 

What’s driving the market?

Saudi Arabia and supply cuts vs strong demand

Rally from USD 42 to 57 was supported by shutdowns due to hurricanes and ongoing Saudi Arabia upheaval

Seems to be exhausted and well overdone

Growing US production will be proved by data soon

On top of that not abiding with production cuts from OPEC members to be visible too

Likely to push prices of oil lower going to year end

 

At the moment traders are hesitant to take profits as they are not sure

How the situation in Saudi Arabia will develop

Likely to take profits after few days of pausing

Brent/WTI spread should stay around USD 6 on transport constrains between Cushing and Gulf coast

 

Brent daily

 

Support levels 62.00 than 60.00

 

Source: Saxo Bank

 

WTI daily

 

Source: Saxo Bank

 

Data/events

 

ECB’s Mersch (1260 GMT)

 

 

Nov 28 – Powell before Senate Banking Committee

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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