Erik Schafhauser Zürich

Morning Brew July 15 2021

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Summary:  USD gives up ground on Dove Powell, Equities stable


Good Morning,

Jerome Powell's testimony was more dovish than FX traders had feared but not as dovish as equity traders had hoped.  He basically kept his stance on  the transitory inflation : "The high inflation readings are for a small group of goods and services directly tied to the reopening" he also hinted at measures in the next 6 months.

US Indexes close mixed with the Dow and the S&P can rise moderately, the NASDAQ gives up a little ground. Apple rises on hints at strong IPhone demand, Wells Fargo and Citi could beat expectations in their earnings reports, Citi falls 0.3% Wells Fargo jumps 4%.  

The USD Index dropped to 92.35 with EURUSD off support along with Cable Gold and Silver. EURUSD could gain to 1.1842, GBPUSD at 1.3850. Gold 1830 and Silver 26.35. Bitcoin seems stuck in a tightening range, currently at 32600. Acc to a Reuters report, Saudi Arabia and the UAE could agree on a compromise, oil receded 1%.

Dax remains near 15800 and needs to break that level for a run to 16200 initially. It might be we need the next ECB meeting to decide a clear direction. Daimler just reported better than expected earnings. The SMI remains above 12000 but seems to also need help to move ahead. 

Overnight, Chinese data slightly disappointed versus the official estimates,  but after recent data points this was expected and loosening monetary policy is seen as compensating sufficiently.

The U.S. Senate banned the import of products from China's Xinjiang region in an effort to put pressure on China to respect human rights in the area. 

Today, watch for the earning releases, initial jobless claims and the continuation of the Powell testimony at 15:30 CET.

Todays Earning reports:

Skandinaviska Enskilda Banken, Fast Retailing, Bank of New York Mellon,  Morgan Stanley, UnitedHealth Group, US Bancorp,  Truist Financial, Progressive Corp and Cintas Corp

Please remember that CLQ1 will expire on 20th July at 15:00 GMT

 

Local Start Date

Local Time

Country/Region

Indicator Name

Period

Reuters Poll

15 Jul 2021

03:00

South Korea

Bank of Korea Base Rate

Jul

15 Jul 2021

03:30

Australia

Employment

Jun

30.0k

15 Jul 2021

03:30

Australia

Unemployment Rate

Jun

5.0%

15 Jul 2021

04:00

China (Mainland)

Urban Investment (YTD)YY

Jun

12.1%

15 Jul 2021

04:00

China (Mainland)

Industrial Output YY

Jun

7.8%

15 Jul 2021

04:00

China (Mainland)

Retail Sales YY

Jun

11.0%

15 Jul 2021

04:00

China (Mainland)

GDP YY

Q2

8.1%

15 Jul 2021

08:00

United Kingdom

Claimant Count Unem Chng

Jun

15 Jul 2021

08:00

United Kingdom

ILO Unemployment Rate

May

4.7%

15 Jul 2021

10:00

Italy

CPI (EU Norm) Final MM

Jun

0.2%

15 Jul 2021

10:00

Italy

CPI (EU Norm) Final YY

Jun

1.3%

15 Jul 2021

12:00

Euro Zone

Reserve Assets Total

Jun

15 Jul 2021

14:30

United States

Initial Jobless Clm

10 Jul, w/e

360k

15 Jul 2021

14:30

United States

Philly Fed Business Indx

Jul

28.3

15 Jul 2021

15:15

United States

Industrial Production MM

Jun

0.7%

16 Jul 2021

00:45

New Zealand

CPI QQ

Q2

16 Jul 2021

11:00

Euro Zone

HICP Final MM

Jun

0.3%

16 Jul 2021

11:00

Euro Zone

HICP Final YY

Jun

1.9%

16 Jul 2021

14:15

Canada

House Starts, Annualized

Jun

270.0k

16 Jul 2021

14:30

United States

Retail Sales MM

Jun

16 Jul 2021

16:00

United States

U Mich Sentiment Prelim

Jul

86.5

16 Jul 2021

Japan

JP BOJ Rate Decision

16 Jul

-0.10%

(Refinitiv)

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