🌐 MORNING MEETING - MARKET PREVIEW - JULY 08
🔴 USD INDEX
The US dollar retreated from highs after the FOMC minutes release with the UST 2y-10y curve continuing its bull flattening. The falling yields suggest that the US dollar could see some selling pressure, at least against low-yielding currencies. However, with risk aversion present in the markets ahead of the weekend, downsides in the USD may be limited. USD bulls could continue to flex their muscles against risk currencies. Today's US Unemployment Claims are expected slightly lower than in the previous month (345k vs 364k expected).
🔴 GLOBAL STOCK MARKETS
Morning traders, global markets entered a broad risk-off mode after the FOMC minutes showed that the Fed is not as hawkish as previously expected. Asian markets closed lower (Hang Seng is down 2.90%), and European markets followed their Asian peers with losses that exceed 1%. US futures are also down ahead of the NY open.
🔴 CURRENCY STRENGTH
Surprise surprise, the risk-off scissors are here! JPY and CHF are the strongest, while AUD, NZD and CAD are racing who will print the biggest loss.
🔴 ECONOMIC CALENDAR
Early in the morning London time, RBA's Lowe held a webinar speech about monetary policy, but didn't deliver anything the markets don't already know.
The remaining calendar is light with key reports being the US unemployment claims and crude oil inventories.
Inventories have fallen more than anticipated for six previous periods, which is helpful to have on mind.
🔴 TOP TRADE IDEAS FOR JULY 08
- Long USD against high-yielders - While falling UST yields could pose a bearish risk for USD, risk-off may still support the currency.
- Long low-yielders - If technicals allow
🔴 USD INDEX
The US dollar retreated from highs after the FOMC minutes release with the UST 2y-10y curve continuing its bull flattening. The falling yields suggest that the US dollar could see some selling pressure, at least against low-yielding currencies. However, with risk aversion present in the markets ahead of the weekend, downsides in the USD may be limited. USD bulls could continue to flex their muscles against risk currencies. Today's US Unemployment Claims are expected slightly lower than in the previous month (345k vs 364k expected).
🔴 GLOBAL STOCK MARKETS
Morning traders, global markets entered a broad risk-off mode after the FOMC minutes showed that the Fed is not as hawkish as previously expected. Asian markets closed lower (Hang Seng is down 2.90%), and European markets followed their Asian peers with losses that exceed 1%. US futures are also down ahead of the NY open.
🔴 CURRENCY STRENGTH
Surprise surprise, the risk-off scissors are here! JPY and CHF are the strongest, while AUD, NZD and CAD are racing who will print the biggest loss.
🔴 ECONOMIC CALENDAR
Early in the morning London time, RBA's Lowe held a webinar speech about monetary policy, but didn't deliver anything the markets don't already know.
The remaining calendar is light with key reports being the US unemployment claims and crude oil inventories.
Inventories have fallen more than anticipated for six previous periods, which is helpful to have on mind.
🔴 TOP TRADE IDEAS FOR JULY 08
- Long USD against high-yielders - While falling UST yields could pose a bearish risk for USD, risk-off may still support the currency.
- Long low-yielders - If technicals allow
