23 July: A quiet session as traders look towards Thuersday’s ECB meeting. UK to announce a new PM today.

By | July 23, 2019

 

Markets are generally little changed on Tuesday morning as traders stand aside while waiting on the policy decisions ahead from the US Fed and the ECB, due in the days ahead. Most FX pairs are pretty much unchanged, although Sterling was under some mild downside pressure on Monday as the UK’s conservative MP’s voted on who will become the next Prime Minister. Boris Johnson, a strong Brexiteer, is the firm favorite to take over from Theresa May and an announcement is due at some stage on Tuesday. Stocks are firm, with the tech sector underpinned by some positive outlooks (Apple +2.3%, Intel +2.1%, Microsoft +1.3%, Facebook +2.0%) from various analysts while the metals and oil are slightly higher at the end of a quiet session.

Tuesday will have a rather empty calendar and apart from a couple of central bank speakers (RBA: Kent, BOE; Haldane) the only real items of note today will be the EU Preliminary Consumer Confidence for July (exp -7.2), the ECB Bank Lending Survey, and then from the US, the Existing Home Sales (exp 1.2%mm), House Price Index (exp 0.3%mm) and the Richmond Fed Mfg Index (exp 5). It looks likely to be another sideways session as traders continue to look forward to Thursday’s ECB Meeting, where, given the lack of improvement in growth and inflation in the EU, combined with recent comments from various ECB Council members, the case for further easing has strengthened.  Mario Draghi’s Press Conference will likely be the major focus. Have a good day.

Economic data highlights will include:

Tue: RBA’s Kent Speech, ECB Lending Survey, BOE Haldane Speech, UK Vote on new PM, US House Price Index, Existing Home Sales, EU Consumer Confidence, Richmond Fed Mfg Index, API Weekly Crude Oil Stock Inventory

Market moves, in brief:

FX: DXY 97.29 (+0.23%)

Bonds: US10Y; 2.050% (-0.3%), German 10Y; -0.345% (-7.5%), UK 10Y; 0.713% (-3.1%), Australian 10Y; 1.342% (-1.6%), NZ 10Y; 1.585% (+0.60 %), China 10Y; 3.19% (+0.03%)

Stock Indices: DJI; +0.07%, S+P; +0.28%, NASDAQ; +0.71%, EUStoxx50; 0.28%, FTSE100; +0.09%, Shanghai Composite; -1.27%,

Metals: Gold $1427 oz (-0.08%), Silver $16.35 oz (+0.92%), Copper $2.72 lb (-1.11%), Iron Ore $120.01 per tonne (NYMEX) (-0.08%),

Oil: WTI $56.22 pb (+0.90%)

CURRENCIES
EURUSD: 1.1208
Res  1.1230  1.1255  1.1280
Sup  1.1200  1.1180  1.1150
USDJPY: 107.89
Res  108.05  108.25  108.50
Sup  107.65  107.45  107.20
GBPUSD: 1.2477
Res  1.2505  1.2540  1.2575
Sup  1.2450  1.2415  1.2380
USDCHF: 0.9821
Res  0.9835  0.9860  0.9885
Sup  0.9800  0.9775  0.9750
AUDUSD: 0.7036
Res  0.7060  0.7075  0.7090
Sup  0.7025  0.7010  0.6995
NZDUSD: 0.6764
Res  0.6785  0.6800  0.6820
Sup  0.6750  0.6730  0.6705
INDICES / COMMODITIES
S&P.fs: 2989.03
Res  2995.00  3010.00  3025.00
Sup  2975.00  2960.00  2945.00
DJ30.fs: 27179.00
Res  27245.00  27410.00  27610.00
Sup  27025.00  26845.00  26695.00
SPI200.fs: 6638
Res  6645  6655  6665
Sup  6630  6620  6610
XAUUSD: 1424.95
Res  1440.00  1450.00  1460.00
Sup  1415.00  1405.00  1395.00
XAGUSD: 16.36
Res  16.50  16.75  17.00
Sup  16.20  15.95  15.70
WTI.fs: 56.28
Res  56.90  58.00  58.90
Sup  55.30  54.20  52.95