Erik Erik Erik

Morning Brew July 29 2022

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Summary:  Risk On Sentiment gains traction on weak GDP


Good Mornings,

Monday is the Swiss national holiday, we will be back Tuesday.

We are observing Risk On sentiment across the board, Indexes rose app 1% and could continue with  approximately another percent gain over night fueled by Apple and Amazon. Both companies could exceed expectations and rose 3% and 12% after hours. The GER40 is nearing the important resistance just below 13400.

A quite severe miss in the first reading of US GBP for Q2 at -0.9 vs an expectation of +0.5% raised hopes of fewer rate hikes and there were also reports of investors getting back into positions after the rate decisions to not miss summer opportunities now that the rate hike risk in the US is over. Volumes were above average. 

In FX, the USD Index fell to below 106, a 6 week low and EURUSD is trading at 1.0216, GBPUSD at 1.2195 and the JPY at 132.95!

Gold and Silver rose to 1765 and Silver breached the 20 again, to trade at 20.15, Bitcoin rose to 24k.

EURCHF is trading just 20 pips above 0.97 and the release of the Swiss National Banks reserves at 9:00 will be interesting. Is the Bank still active to weaken the Frank or has it even started to reducer it`s foreign reserves?

The Japanese production data over night surprised to the upside significantly, while 3.7% were expected, they rose by 8.9% and the French GDP came 0.3% higher than expected.

Todays key data is the French KOF and Official Reserves at 9:00, German Employment data at 9:55 and 10:00 as well as the EI HICP and GDP at 11:00, at 14:30 and 16:00 the US Consumption and University of Michigan Sentiment. Canadas GDP will be released at 14:30.

Key earnings are Exxonmobile P&G CBOE and Chevron

Our Kim Cramer was extremely productive yesterday with chart collections on :

European Equities: https://www.home.saxo/content/articles/equity/ta-eustocks-28072022

US Indexes: https://www.home.saxo/content/articles/equity/ta-us-stocks-28072022

US Treasuries: https://www.home.saxo/content/articles/commodities/ta-us10year-28072022

Yen: https://www.home.saxo/content/articles/forex/ta-jpy-28072022

Expiries

        Physically Settled Futures:

HOQ2, RBQ2 will expire 29th July at 15:00 GMT.

Expiring CFDs:

OILUKSEP22 will expire 29th July at 15:00 GMT.

LIVECATTLEAUG22 will expire 4th Aug at 15:00 GMT.

 

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.