5 July: Quiet markets due to US holiday. All eyes now on the upcoming US/China trade tariffs & the the NFP, Friday.

By | July 5, 2018

 

The US holiday has meant quiet conditions in all markets on Wednesday although traders are looking ahead with some nervousness, as the potential trade war remains the main theme, with US tariffs on China and the latter’s retaliation becoming effective on July 6. With the NFP due on Friday, it could be a busy end to the week!

In terms of data, the main interest was in the UK Services PMI which rose to 55.1, up from 54.0 and beat expectation of 53.9, which opens the way for a possible August BoE hike.

Unfortunately, the day looks like getting off to a very slow start following on from the US holiday, with nothing at all to be released in Asia and then with precious little to come from the EU either, aside from the German Factory Orders for May and a speech each from the Bank of England Governor, Mark Carney and the BuBa’s Weidmann. The US will disturb the peace and quiet though with the result of the June FOMC Minutes, which should have a hawkish tilt given the rate hike last month, with the chance of more to come. Also, to be released will be the ISM Non-Mfg for June (exp 58.2), the Markit Services/Composite PMIs (exp 55.4/56), the weekly jobless claims and the ADP Private Jobs data (exp +180K), and which comes ahead of tomorrow’s US Jobs/NFP/Average Hourly Earnings (exp 3.8%, 190K, 0.3%). WTI trades will be looking out for the EIA weekly crude oil stock change. Have a good day.

CURRENCIES
EURUSD: 1.1655
Res  1.1675  1.1690  1.1720
Sup  1.1630  1.1615  1.1590
USDJPY: 110.48
Res  110.80  111.15  111.40
Sup  110.25  110.00  109.70
GBPUSD: 1.3232
Res  1.3250  1.3290  1.3315
Sup  1.3210  1.3185  1.3160
USDCHF: 0.9924
Res  0.9950  0.9965  0.9990
Sup  0.9905  0.9890  0.9855
AUDUSD: 0.7381
Res  0.7405  0.7425  0.7445
Sup  0.7370  0.7345  0.7310
NZDUSD: 0.6760
Res  0.6790  0.6825  0.6860
Sup  0.6720  0.6685  0.6650
INDICES / COMMODITIES
S&P.fs: 2721.65
Res  2725.00  2735.00  2745.00
Sup  2705.00  2695.00  2685.00
DJ30.fs: 24200.00
Res  24300.00  24440.00  24560.00
Sup  24050.00  23970.00  23860.00
SPI200.fs: 6145
Res  6165  6185  6200
Sup  6135  6120  6100
XAUUSD: 1257.03
Res  1260.00  1265.00  1270.00
Sup  1250.00  1245.00  1240.00
XAGUSD: 16.07
Res  16.15  16.30  16.45
Sup  15.90  15.75  15.50
WTI.fs: 74.32
Res  74.45  75.30  76.00
Sup  73.40  72.75  72.20