26 June: Trade worries again in focus. Empty calendar means politics, central bank speakers to decide direction today.

By | June 26, 2018

 

Trade worries were the main focus on Monday, with stocks falling hard, at one stage down around 2.5%, before a late squeeze higher, with the DJI and the S+P finishing the day down by around 1.3%. The relationship between the US/China was the centre of attention following a report that Trump was considering targeted measures to prevent China from acquiring US technology. A tweet from Mnuchin denied the story, so for the time being the market remains uncertain, as well as very nervous as to what the eventual outcome to all the trade concerns will be.

In the currency markets, the US$ was mixed to lower, with safe-haven demand for the Jpy being evident although US$Jpy has managed a 40 point rally off its session lows. The commodity currencies were weak due to the trade worries, while the Euro was strong – in part due to good IFO numbers in Europe.

Tuesday is rather thin on the ground for economic data and it looks as though politics will drive any potential market moves. Asia is completely empty, with Europe not much better, with only the UK CBI Industrial Trends Survey – Realised to provide any inspiration. The US will look to the Richmond Fed Mfg Index and the Case Shiller House Price Index for guidance along with speeches from the Fed’s Bostic and Kaplan. Have a good day

CURRENCIES
EURUSD: 1.1700
Res  1.1715  1.1740  1.1755
Sup  1.1675  1.1650  1.1625
USDJPY: 109.73
Res  110.00  110.20  110.50
Sup  109.50  109.35  109.20
GBPUSD: 1.3278
Res  1.3290  1.3315  1.3350
Sup  1.3255  1.3245  1.3220
USDCHF: 0.9871
Res  0.9890  0.9915  0.9925
Sup  0.9855  0.9825  0.9790
AUDUSD: 0.7413
Res  0.7435  0.7455  0.7480
Sup  0.7395  0.7370  0.7345
NZDUSD: 0.6887
Res  0.6920  0.6950  0.6975
Sup  0.6875  0.6850  0.6825
INDICES / COMMODITIES
S&P.fs: 2722
Res  2730  2745  2755
Sup  2710  2700  2685
DJ30: 24278
Res  24400  24545  24665
Sup  24155  24075  23955
SPI200: 6098
Res  6110  6135  6160
Sup  6075  6055  6030
XAUUSD: 1265
Res  1270  1275  1280
Sup  1260  1255  1250
XAGUSD: 16.32
Res  16.45  16.60  16.75
Sup  16.20  16.05  15.90
WTI: 68.17
Res  68.65  69.40  70.15
Sup  67.40  66.65  66.05