Erik Schafhauser Zürich Erik Schafhauser Zürich Erik Schafhauser Zürich

Morning Brew July 8 2021

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Good Morning,

The message from the FOMC minutes was less clear than hoped. The key messages were

  • the recovery was strong but not completed,
  • Inflation is high but largely transitory
  • Unemployment still elevated

Probably the key message was that the Fed was that several Fed Members anticipate to start tapering earlier than previously anticipated but using a patient approach.

Almost more interesting than the FOMC Minutes was the fact that traders are expecting a raise if the debt ceiling in the near future. That will cause more bond issuances by the US. 10 Year Yields fell to below 1.30 % for the first time since February.

The USD Index fives up some gains in early Europe, currently 92.65 after a high at 92.80.

Equities could initially gain but futures came under pressure in the Asian session. Risk averseness was triggered by rising corona cases and worries that regulation may hurt tech shares as just seen with Didi.

Key Indexes are down 0.2-0.5% so not a huge move, EURUSD is trading at 1.1800 and Gold and Silver retreat to 27.90 and 1797. The Hang Seng fell below the 200 day Moving Average. Oil seems to have calmed a little after the Opec+ meeting/ Non-meeting turmoil, the CL contract seems to stabilize at around 72

The only key agenda item is the US Initial Jobless claims.

You can now trade Crypto Currencies as FX Cross:

SaxoTraderGO

Please be aware that cryptocurrencies are very volatile. Losses can exceed deposits. This marketing material does not constitute an offer or a recommendation to invest. Consult the risk disclosure statement on our website before investing

We offer ETHUSD; BTCUSD, LTCUSD, ETHEUR, BTCEUR and LTCEUR as long or short.

Please remember that cryptocurrencies are very volatile and make sure to check the trading conditions before starting to trade.

Headlines:

  • China is hinting at lower Reserve Ratio Requirements for banks to boost economic recovery
  • Watch the Google stock after 37 US States filed a lawsuit against the company for abusing monopoly power in it`s play store.
  • South Korea records the highest number of corona infections - though “only” (1275)
  • Didi falls further to 11.93

 

Local Start Date

Local Time

Country/Region

Indicator Name

Period

Reuters Poll

8 Jul 2021

01:50

Japan

Current Account NSA JPY

May

1,820.4B

8 Jul 2021

14:00

Brazil

IPCA Inflation Index MM

Jun

0.60%

8 Jul 2021

14:30

United States

Initial Jobless Clm

3 Jul, w/e

350k

9 Jul 2021

03:30

China (Mainland)

PPI YY

Jun

8.8%

9 Jul 2021

03:30

China (Mainland)

CPI YY

Jun

1.3%

9 Jul 2021

08:00

United Kingdom

GDP Est 3M/3M

May

3.9%

9 Jul 2021

08:00

United Kingdom

GDP Estimate MM

May

1.5%

9 Jul 2021

08:00

United Kingdom

GDP Estimate YY

May

25.9%

9 Jul 2021

08:00

United Kingdom

Manufacturing Output MM

May

1.0%

9 Jul 2021

08:00

Norway

Consumer Price Index MM

Jun

0.4%

9 Jul 2021

08:00

Norway

Consumer Price Index YY

Jun

2.9%

9 Jul 2021

09:00

Turkey

Current Account Balance

May

-3.025B

9 Jul 2021

14:30

Canada

Employment Change

Jun

195.0k

9 Jul 2021

14:30

Canada

Unemployment Rate

Jun

7.7%

12 Jul 2021

01:50

Japan

Corp Goods Price MM

Jun

12 Jul 2021

01:50

Japan

Corp Goods Price YY

Jun

12 Jul 2021

01:50

Japan

Machinery Orders MM

May

12 Jul 2021

01:50

Japan

Machinery Orders YY

May

12 Jul 2021

08:00

Denmark

CPI YY

Jun

12 Jul 2021

China (Mainland)

Total Social Financing

Jun

2,800.00B

12 Jul 2021

China (Mainland)

M2 Money Supply YY

Jun

8.2%

12 Jul 2021

China (Mainland)

New Yuan Loans

Jun

1,800.0B

(Refinitiv)


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.