19 July: Stocks firm on positive corporate results. US$ mixed. Australian jobs data ahead.

By | July 19, 2018

 

The US indices are higher on Wednesday after some solid earnings, led by the banks, boosted financial and industrial stocks and reinforced expectations for a strong Q2 reporting season. The US$ is mixed, with commodity currencies bouncing from an early dip, underpinned by positive risk sentiment because of the stock market rally, while Sterling took a hit after the UK CPI missed market expectations, lowering the chances of an August BoE hike. The headline UK CPI was unchanged at 2.4% yy in June, below expectation of 2.6% yy. Ongoing Brexit uncertainty is also weighing on Sterling. In other markets, Gold remains heavy at 12 month lows while WTI had a choppy session but is pretty much unchanged at the end of the day, at $68pb.

In other data on Tuesday, the US housing starts dropped  to 1.17 mio annualised  in June, while the building permits dropped to 1.27 mio.  The EU CPI was finalised at 2.0% yy in June, core CPI at 0.9% yy, in line with expectations.

Thursday will begin with a busy session for Australia, which will include the Q2 NAB Business Confidence/Conditions and the June Unemployment figure (exp 5.5%, +17K, PR; 65.5). After that though It all becomes rather thin, with just the UK Retail Sales for June (exp 0.4%mm, 3.9%yy; Ex-Fuel 0.3%mm, 3.7%yy), and then later in the session, the Philadelphia Fed Mfg Survey, the weekly US Jobless Claims and a speech from the Fed’s Quarles.

CURRENCIES
EURUSD: 1.1641
Res  1.1660  1.1690  1.1725
Sup  1.1600  1.1565  1.1525
USDJPY: 112.87
Res  113.00  113.15  113.40
Sup  112.70  112.45  112.20
GBPUSD: 1.3069
Res  1.3095  1.3115  1.3140
Sup  1.3050  1.3035  1.3005
USDCHF: 0.9988
Res  1.0030  1.0070  1.0100
Sup  0.9965  0.9925  0.9880
AUDUSD: 0.7398
Res  0.7405  0.7415  0.7430
Sup  0.7385  0.7370  0.7345
NZDUSD: 0.6794
Res  0.6805  0.6820  0.6840
Sup  0.6775  0.6760  0.6740
INDICES / COMMODITIES
S&P.fs: 2814
Res  2830  2820  2840
Sup  2805  2795  2785
DJ30.fs: 25159
Res  25195  25265  25345
Sup  25085  25015  24960
SPI200.fs: 6204
Res  6225  6245  6265
Sup  6185  6165  6145
XAUUSD: 1227.47
Res  1230  1235  1240
Sup  1225  1220  1215
XAGUSD: 15.55
Res  15.65  15.80  15.95
Sup  15.50  15.40  15.25
WTI.fs: 67.85
Res  68.45  69.20  70.05
Sup  67.05  66.30  65.50