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USD Risk: Long Euro & Yuan

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      10/06/21 10:53

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    • Early Morning Call: Indices mostly higher; BA cancels more flights; gold at 9-month low Indices are mostly higher despite FOMC minutes and IMF highlighting the need for higher rates. Watching IAG as British Airways cancels a further 10,300 flights this summer. And oil up after 3-month lows, gold at 9-month lows.      Jeremy Naylor | Writer, London | Publication date: Thursday 07 July 2022  Indices outlook Indices in the Asia-Pacific region mostly rose overnight, led by a similar performance stateside. Markets seem to appreciate the clarity and consistency of the message delivered by financial leaders. The Federal Reserve (Fed) minutes reiterated yesterday that a “more restrictive stance” in policy will be suitable until inflation targets are reached. The document said that “participants recognised that policy firming could slow the pace of economic growth for a time, but they saw the return of inflation to 2% as critical to achieving maximum employment on a sustained basis.” In terms of what's expected, members said the July meeting would likely see another 50- or 75-basis point (bps) move. International Monetary Fund (IMF) director, Kristalina Georgieva, while warning of a possible global recession, expressed her support towards central bank actions by saying that slower economic growth may be a "necessary price to pay", as there is a pressing need to restore price stability. In Europe, equity markets opened in positive territory, following a solid performance yesterday. France’s CAC 40 outperformed main indices in the region, closing 2.03% higher. In Australia, trade surplus widened in May to a record high of $16 billion, easily beating market forecasts of a $10.7bn surplus. Exports rose more than imports, helped by soaring commodity prices. Exports increased by 9.5% month-on-month (MoM) to a fresh record of $58.4bn, while imports increased by 5.8% MoM, also to a new record of $42.4bn. The Australian dollar reacted positively to the news. In Germany, industrial production rose by 0.2% in May on a month-on-month basis, below economists’ expectations of 0.4%. At 1.30pm look out for initial jobless claims. Economists expect 230,000 new claimants for last week, a figure that has been creeping up since the March low. The last four weeks' data has been oscillating between 231,000 and 232,000. Equities Persimmon released a trading update showing total revenue of £1.69bn for the first six months of the year (H1), lower than the £1.84bn of H1 last year, with forward sales marginally higher than last year. Currys' adjusted profit before tax rose to £186 million, while like-for-like revenue fell 3%. The group proposed a final dividend of 2.15 pence, taking total dividend to 3.15 pence, up 5%. British Airways (BA) has cut a further 10,300 short-haul flights between August and October, which means the airline will drop almost 30,000 flights during the summer season. In the US, Levi Strauss is reporting tonight after market close. Analysts expect a mixed report. On one hand, the company has seen recent robust demand for its products as people return to the shops. But on the other, given the worsening economic situation, consumers are poised to tighten their spending on discretionary products, which include clothing and accessories. Earnings per share (EPS) is expected at 23 cents on revenue of $1.43bn but, as with other earnings, it's likely to be all about the outlook. Commodities On the commodity front, gold recorded a second day of heavy losses yesterday. The precious metal is trading higher this morning, but remains at levels not seen since October 2021. Oil prices are rising this morning, paring some of yesterday afternoon’s losses. The American Petroleum Institute (API) yesterday evening reported an increase in crude oil stocks of 3.8 million barrels last week, when oil analysts had expected a decrease of 1.1 million barrels. Gasoline inventories fell by 1.8 million barrels, while distillate stocks fell by 635,000.     This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
    • Bitcoin USD price, analysis (live) charts, news videos. Learn about BTC Elliott Wave bitcoin cryptocurrency, crypto trading. Bitcoin Headline News Today: Bank of America's Crypto traders drop 50% in this bear Market Crypto Market Summary Elliott Wave Analysis : Elliott Wave c of (ii)  or c of (iv) corrective rally in line with the tech stocks Bitcoin Trading Strategy: Today I' looking at both the bearish and bullish Elliott wave counts and pointing out at what point they confirm as bullish or bearish. Analyst Peter Mathers TradingLounge™     
    • While the Fed minutes last night stressed that more rate hikes would be needed, signs of weakness in commodity prices have given markets hope that perhaps the worst of the inflation surge is now behind us. Markets can, perhaps, cope with rate rises as long as the outlook further down the road is looking brighter. Asian indices made headway, taking their cue from the recovery in the US yesterday after a shaky couple of days. In the UK the political drama drags on, with no sign that the Prime Minister intends to resign yet even as resignations continue to flow from his cabinet and the wider government payroll. Investors now begin to turn their attention towards Friday's payroll figures, the main event of the week.   
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