10 July: Stocks up, US$ mixed – Cable down after Boris Johnson resigns. China CPI, EU ZEW, UK GDP in focus today.

By | July 10, 2018

 

US stock indices rose to their highest in almost a month (DJ +1.3%, S+P + 0.9%) as traders set aside concerns over the escalating trade and political tensions to focus on the coming earnings season. The US$ has been mostly rangebound towards the top end of its current range although Sterling had a rough ride after the resignation of the UK Foreign Minister, Boris Johnson, because of disagreements with the Prime Minister Theresa May over the Brexit strategy. May’s position looks very shaky and seems likely to weigh on Cable in coming sessions. Elsewhere, the metals were volatile but currently remain unchanged on the day, while WTI is also pretty much unchanged.

Tuesday will begin with the NAB Business Confidence/Conditions (exp 8/18), closely followed by the China CPI (exp 0.0%mm, 1.95yy), PPI and Foreign Exchange Reserves for June. Europe will focus on the German/EU ZEW Economic Sentiment Survey and the UK Manufacturing/Industrial Production and Trade Balance, along with the new, monthly release (as opposed to quarterly) of the GDP figures. The US session will be thin for data, with just the NFIB Business Optimism Index although most of the focus will again be on any headlines with regards to the potential trade war.

CURRENCIES
EURUSD: 1.1751
Res  1.1770  1.1790  1.1815
Sup  1.1725  1.1700  1.1680
USDJPY: 110.81
Res  110.90  111.15  111.40
Sup  110.60  110.45  110.25
GBPUSD: 1.3256
Res  1.3290  1.3315  1.3365
Sup  1.3225  1.3190  1.3155
USDCHF: 0.9913
Res  0.9930  0.9945  0.9965
Sup  0.9895  0.9875  0.9855
AUDUSD: 0.7464
Res  0.7480  0.7500  0.7520
Sup  0.7445  0.7425  0.7400
NZDUSD: 0.6834
Res  0.6860  0.6880  0.6920
Sup  0.6825  0.6795  0.6770
INDICES / COMMODITIES
S&P.fs: 2787
Res  2790.00  2800  2810
Sup  2780.00  2770  2760
DJ30.fs: 24770
Res  24855  24930  25015
Sup  24705  24540  24630
SPI200.fs: 6263
Res  6275  6300  6320
Sup  6245  6225  6205
XAUUSD: 1257.47
Res  1260  1265  1270
Sup  1250  1245  1240
XAGUSD: 16.10
Res  16.20  16.30  16.45
Sup  16.00  15.90  15.80
WTI.fs: 73.96
Res  74.25  74.80  75.35
Sup  73.35  72.95  72.10