Overnight Developments

  • Happy July fourth to all US readers and TGI-Friday.
  • IMF warns of negative spiral on France as recession looms again AEP
  • US’s Lew: China needs to be more transparent, has to be clear when the government is intervening and why
  • Sweden’s Borg: Unemployment remains too high / Public finances look somewhat weak
  • A nothing to see session, no economic data, nobody really said anything and most were happy to sit on their hands and do nothing. Why expect anything different post ECB/NFP and on Independence Day?
  • Currency markets ground to a halt, Asian equities started out strongly and then died.
  • The Nikkei is currently up 0,57%% at 15,435, the Hang Seng is flat at 23,593, the Asx is also up +0,70% at 5,529 and the Shanghai Composite is down -0,33% at 2,056.
  • Gold is flat 1320, Silver is up +0,15% at 21,168, Crude is down -0,08% at 103,98, the US 10YR is up 0,5% at 2,641.

FX Update

Another “blast from the past” yesterday, as USDJPY took up the baton as most reactive currency to US data. However, there were more sellers of USDJPY and EURJPY than the price action suggests with both RM and some macros happy to sell the bounce. But it was nice to see nonetheless.

EURUSD is sleeping. Opened at 1.3610 and tested the waters a handful of pips north & south of that. Offers still there at 1.3675 with stops above and more offers at 1.3690. Small bids close to market at 1.3600 with stops at 1.3590 and macro bids at 1.3550.

AUDUSD is as boring as the Euro, opening at 9343 and drifting to 9355. Stops seen at 9385 with offers at 9400 and stops just above. Bids at 9330 with stops at 9320 and large bids at 9300.

USDCAD is hosting the slumber party today. Sitting at 1.0634, there are leveraged offers at 1.0650 with stops at 1.0675 and offers at 1.0690. Corporate bids are seen at 1.0620 with large bids at 1.0605 and a Barrier touted at 1.0600.

NZDUSD seemed somewhat more active, opening at 8756, dipping to 8743 and now back to the start. Offers are seen at 8780, with stops at 8790 and offers just ahead of the Barrier touted at 8800. Bids seen at 8740 with stops at 8725.

GBPUSD on the other hand (mirroring EURGBP) is showing the market who’s boss during Stateside holidays. Opened at 1.7150 and trotted to 1.7170 where we sit now. Offers are seen here into 1.7175 with more to come at 1.7190/7200. Macro bids still resting at 1.7100 with stops at 1.7095.

USDJPY is retracing somewhat after the stellar day yesterday. Opened at 102,17, rose to 102,22 and is now at 102,07. Leveraged offers seen at 102.30 and equally strong offers seen at 102.50. Stops at 102.55. Sell stops seen at 101.80 with bids at 101.75 and stops just below at 101.70.

Data on Tap today (all times GMT)

Good Luck today, and have a great weekend.