26 July: Stocks up, US$ down after Trump gains EU trade concessions. ECB Meeting, US Durable Goods ahead today.

By | July 26, 2018

 

Stocks are up and the US$ is lower on Thursday after Donald Trump secured concessions from the EU to avoid a trade war. Stocks soared by 1% after the announcement of a deal while the US$ weakened and it looks as though we could be in for some follow-through trade in the session ahead. The meeting resulted in EU Commission President Jean-Claude Juncker agreeing to work with Trump to lower industrial tariffs on both sides, to increase natural gas exports and soy beans to Europe and harmonize regulatory standards to allow for medical devices to have better market access in Europe.

In other markets, commodities went higher, enjoying a relief rally as fears of a trade war eased, with Gold up by $7oz, while WTI was up by 1% and Copper rallied by 2%.

Thursday will get off to a quiet start in Asia, with just the Australian Import/Export Index to provide any inspiration. Things will heat up in Europe though with the ECB Meeting and Interest Rate Decision. No change to policy is expected so all the focus is going to be on Mario Draghi’s Press Conference. The US session will feature the June Durable Goods Orders (exp 2.5%, Ex-Transport 0.3%) as well as the Preliminary Wholesale Inventories (exp 0.3%) and the June Goods Trade Balance. Have a good day.

CURRENCIES
EURUSD: 1.1734
Res  1.1740  1.1760  1.1795
Sup  1.1700  1.1675  1.1655
USDJPY: 110.92
Res  111.20  111.55  111.80
Sup  110.65  110.30  110.00
GBPUSD: 1.3195
Res  1.3200  1.3235  1.3270
Sup  1.3170  1.3150  1.3130
USDCHF: 0.9913
Res  0.9950  1.0015  1.0065
Sup  0.9900  0.9855  0.9785
AUDUSD: 0.7456
Res  0.7465  0.7485  0.7505
Sup  0.7435  0.7415  0.7390
NZDUSD: 0.6840
Res  0.6845  0.6860  0.6880
Sup  0.6825  0.6805  0.6785
INDICES / COMMODITIES
S&P: 2843
Res  2850  2860  2870
Sup  2830  2820  2810
DJ30: 25421
Res  25430  25510  25595
Sup  25325  25265  25195
SPI200: 6200
Res  6220  6235  6250
Sup  6195  6180  6160
XAUUSD: 1231
Res  1235  1240  1245
Sup  1230  1225  1220
XAGUSD: 15.61
Res  15.60  15.70  15.80
Sup  15.55  15.45  15.30
WTI: 69.23
Res  69.65  70.35  71.05
Sup  68.80  68.20  67.55