Morning Brew July 6 2022
Senior Relationship Manager
Summary: Markets are on edge
Yesterday was an interesting day, US Equities closed somewhat friendly with the Dow down 0.42%, the S&P 500 up 0.16% and the Nasdaq up 1.75%. Key movers were the USD which gained substantially and Metals which came under severe pressure on growth fears. Copper is down almost 30% since late May, Gold and Silver are trading 1763 and 18.95. The US Yield Curve inverted, as two-year Treasuries rose above the 10-year. 2 years are at 2.806 and 10 at 2.79.
EURUSD fell to 1.0239 low , currently 1.0250 and GBPUSD at 1.1930. The Pound is further stressed by pressure on BoJo as two ministers resign and express their lack of confidence in him, in various news outlets his resignation is not unlikely. The 1 month Implied Vol of an EURUSD ATM Option is 11%, GBP 12. From a technical view, EURUSD has room for parity. The USD Index is trading at 106.63
German Industrial orders were released stronger than feared at +0.1% vs -0.6% expected,.
Voyager Digital has filed for bankruptcy, , a week after suspending withdrawals. Acc to Reuters, Voyager estimates that it had more than 100,000 creditors holding somewhere between $1 billion and $10 billion in crypto assets.
EU Retail Sales at 11:00 and the US PMI will be in focus. In the evening, the Fed minutes will be closely watched.
Besides the economic data, any news on Gas deliveries to Europe will be closely watched and comments out of central banks and from politicians to adress the current turmoil as well.