Euro Stoxx 50 & IBEX 35 Retreat from Records Amid Inflation, Virus Fears
2021-07-14 00:00:00
Brendan Fagan,
IBEX 35, Euro Stoxx 50, Delta Variant, US CPI Talking Points:
IBEX 35 holds key technical level, recent downtrend fueled by virus fears remains firmly intact
EuroStoxx 50 gearing up for test of 4,100 following recent bounce off of 200-day moving average
European Union members reimplement restrictions following COVID breakouts
European stocks have been mixed of late as fears return over additional COVID restrictions following a sustained breakout of the Delta variant. Market participants would have had one eye on Tuesday’s US CPI print, which recorded the highest inflation increase since 2009. Some sense of normality resumed over the weekend as the European Championship final was hosted in London with over 60,000 spectators in attendance. The final highlighted the staggering difference between European countries in terms of virus containment protocols. The U.K. governme
AUD/USD Bounce Continues Following Strong Chinese Trade Data
2021-07-13 03:30:00
Brendan Fagan,
AUD/USD, Chinese Balance of Trade, PBOC Talking Points:
Chinese trade balance blows away expectations, coming in at $51.53 B vs. $44.2 B est.
China continues to worry about potential slowdown, easy monetary policy returns
AUD/USD looks to test 0.7500 despite COVID fears weighing on sentiment
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Chinese export data blew expectations out of the water Tuesday morning, despite recent worries over a slowing domestic economy. Exports for June rose 32.2% (in USD) over the same period last year. The balance of trade for June came in at $51.53 billion, vs. a consensus estimate of $44.2 billion. For the first half of 2021, China reported a trade surplus with the United States of $164.92 billion. The trade surplus with the US for the month of June came in at $32.58 billion, up from $31.78 billion in the month of May. Despite recent price pressures and intervention from Beijing, Chi
AUD/USD Bears May Remain In Control as Chinese CPI Disappoints
2021-07-09 02:00:00
Brendan Fagan,
AUD/USD, PBOC, Chinese Inflation, China Talking Points:
Chinese CPI for June comes in at 1.1% (YoY) vs. consensus estimate of 1.3%
AUD/USD remains near September 2020 high amid virus fears and Federal Reserve hawkishness
Regulatory pressure remains heavy as Beijing cracks down on foreign listed entities
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China’s June Consumer Price Index (CPI) disappointed on Friday morning, coming in at 1.1% against an expected reading of 1.3% on a year-over-year basis. The Producer Price Index (PPI) for June was in line with estimates, coming in at 8.8%. The data will certainly catch the attention of Beijing, who just this week publicly stated their intention to implement further monetary easing to help the economy. The slightly disappointing prints come amid a period of sustained strength for the Greenback against the Offshore Yuan (CNH). Dollar strength of late comes on the he
Japanese Yen Outlook: USD/JPY Remains Under Pressure Following Mixed Tankan Data
2021-07-01 00:30:00
Brendan Fagan,
Japanese Yen, USD/JPY, Tankan – Outlook and Capex Talking Points
Tankan Large All Industry Capex comes in at 9.6%, against a consensus estimate of 7.2%
Tankan Large Manufacturing comes in at 14, just below the expected reading of 15
USD/JPY remains on the charge, making a clean break above the March swing high
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The Bank of Japan released key economic data on Thursday morning, highlighting the ongoing rebound across the domestic manufacturing sector. While the Tankan Large Manufacturing Index and Outlook reports both posted significant increases over their Q1 readings, they fell short of market estimates. The Tankan Large Manufacturers Index produced a reading of 14 for Q2, against a consensus estimate of 15. The Tankan Large Manufacturers Outlook posted a larger miss, coming in at 13 vs. an expected reading of 18. Despite missing expectations, the