Short recap
Asia mixed
Europe opening higher
Oil was heavily hit by strong rise in US inventories and products amid OPEC efforts to cut production/supply
According to Comey’s prepared statement Trump asked him to drop an investigation of Flynn
But nothing new what would surprise markets
Markets getting ready for ECB, Comey, UK elections and Qatar/N. Korea mess
Canada to boost defence spending as US is less reliable
I like this one too as many countries used to take US defence umbrella for cheap money and are not happy with Trump now
Equities
Banco Popular rescue scheme can be use for Italian banks as well
Delphi Automotive partnering with Transdev Group in the field of shuffle service
Apple working to shorten repair times
BlackBerry out with car computer system
Goldman Sachs to increase deposit rates
Bonds
10-yr Trys yield at 2.18%
10-yr Bund yield at 0.26%
DXY
Support at 96.44 (38.2% Fibo) holding
Resistance at 97.85 (50% Fibo)
EURUSD
Recouped the losses after inflation downgrade leak yesterday
As market still believes in hawkish ECB
Resistance at 1.1284, then 1.1300
Offers towards 1.1300 (option barrier), likely lots of stops above
Support at 1.1230 (10 DMA), then 1.1180 (23.6% Fibo)
Expiring options at 1.1200 (EUR 1.7 bln)
Tomorrow we have heavy expiries both below and above 1.1300
USDJPY
110.00 important with heavy option expiries tomorrow too
Support at 109.60 (76.4% Fibo), then at 108.12
Resistance at 110.44 (200 DMA)
GBPUSD
Still holding well despite upcoming Brexit talks
1.2974 in focus followed by 1.3046
With stops sitting above 1.3050 and 1.3100
Support at 1.2802 (50 DMA), then 1.2768
Stops sitting below these levels
Should see a relief rally after Conservative win
But to fade later as we refocus on Brexit talks
EURGBP
0.8786 and 0.8850 may be in sight
Gold
Resistance at 1300, then at 1308
Support at 1286 (76.4% Fibo)
Upcoming Data/Events
G20 meeting
ECB meeting – getting grow but where is the inflation?
Draghi being alone but inflation data from EZ, US and JP suggest ECB to carry on with ultra-loose stimulus
ECB likely to adjust the risk to economy wording but no change to asset purchases
QE exit likely touched a bit with no precise dates
New staff predictions for 2017-19 to be released
Overall, Draghi will have top dovish performance while bit of admitting of a small shift
Sep meeting to be critical with respect to forward guidance
Former FBI director James Comey to testify before Senate (1400 GMT)
Prepared remarks for semi-official hearing
link
'I need loyalty, I expect loyalty'
"I didn't move, speak, or change my facial expression in any way during the awkward silence that followed."
If Comey doesn’t reveal anything new at the hearing, markets should take it as a risk on and USD to benefit
Overall little impact on markets
UK elections including Scotland, if SNP/Sturgeon wins the independence referendum likely to follow
Not the UK elections count but Brexit talks
2100 GMT - Exit polls
2200 GMT – First districts counted
02-0400 GMT – decisive amount of districts counted
June 11/18 – French Legislative (Parliamentary) elections(a big question mark for Macron to gain majority)
June 13/14 – FOMC meeting – Jun hike probability at 95%, Sep at 28% and Dec at 40%. After Friday’s NFPs Sep hike may be skipped if data doesn’t come strong.
June 15/16 – EcoFin meeting to discuss Greece
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