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Navigate Global Payments – Markets Today 13th July 2022

 

MARKET WRAP July 13 2022

  • US stock markets finished negative as global growth and COVID concerns lingered, while the upcoming risk events including Wednesday’s CPI data added to the cautious mood. DXY was choppy ahead of the inflation data but eventually returned flat with late support amid the soured risk tone, while EUR/USD bounced back after approaching parity.
  •  The brewing COVID backdrop and the poor German ZEW data were enough to sustain the global growth fear loop which hammered commodities lower and saw oil benchmarks slip beneath the USD 100/bbl figure.
  • In FX, the Dollar was choppy but ultimately flat, while EUR/USD bounced off parity, holding the linedespite an abysmal German ZEW survey that saw Bunds lifted.

FX

  • Dollar was choppy on Tuesday, but ultimately flat, after hitting a 20yr high of 108.56 earlier in the session, with market participants awaiting US CPI Wednesday, followed by retail sales on Friday. The releases will help participants gauge how much further Fed policy can (Dollar-bullishly) diverge from its peers such as the ECB and BoJ. Furthermore, a strong CPI print Wednesday and PPI on Thursday would keep the heat on the Fed to hike rates by 75bps again this month before slowing the tightening pace.
  • In the European morning AUD/USD hit a 2yr low of 0.6709, but the Aussie recovered some of these losses as the risk off tone averted, slightly.
  • EUR ended flat, but that tells only half the story, as EUR/USD tested parity, albeit momentarily, on Tuesday. Nonetheless, Euro looked almost certain to breach further beneath the historic level on more than one occasion as pressure built, but it survived the most severe test with some assistance via barrier defences following a gloomy ZEW survey that highlighted the extent of energy crisis contagion in Germany and across the Eurozone generally.


TODAY’S KEY RISK EVENTS

  • Looking ahead, highlights include New Zealand Food prices, RBNZ Rate Decision, BOK Rate Decision, Chinese Trade Data & Australian Supply. China Retail Sales –

CURRENCY/INDICIES RANGES

Currency Pair Low High
AUD/USD 0.67115 0.67785
EUR/USD 1.00005 1.0074
GBP/USD 1.18075 1.1914
USD/JPY 136.47 137.53
NZD/USD 0.61025 0.6145
USD/CAD 1.29845 1.305
USD/CNH 6.7239 6.753
AUD/JPY 91.92 92.66
AUD/NZD 1.0994 1.1033
DXY 107.843 108.562

 

Equity Index Daily % Change Closing Level
ASX 0.1% 6606
SHANGHAI COMP -1.0% 3281
NIKKEI -1.8% 26337
FTSE 0.2% 7210
DAX 0.6% 12905
CAC 0.8% 6044
DOW JONES -0.6% 30981
S&P 500 -0.9% 3819
NASDAQ -0.9% 11265
VIX 4.3% 27.29
     
     
Commodity Daily % Change Closing Level
CRUDE OIL -8.1% 95.7
ICE NAT GAS 9.8% 244.0
GOLD -0.2% 1725.5
SILVER -0.6% 18.9
SGX IRON ORE 1.0% 106.1
CMX COPPER -5.0% 325.8
ICE SUGAR -0.9% 18.7
ICE COTTON -4.2% 244.0
CBT WHEAT -5.3% 811.5
BITCOIN -2.0% 19477.5
     
     
Rates Markets Yield Daily Change
US 2 YEAR 3.05% -2.6
US 10 YEAR 2.97% -2.3
AUST 2 YEAR 2.51% -9.3
AUST 10 YEAR 3.42% -9.4

 

   

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Disclaimer: This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711. The material contains general commentary only and does not constitute investment or any other advice. Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors. This information has been prepared without considering your objectives, financial situation or needs. Please seek your own independent legal or financial advice before proceeding with any investment decision. The information is believed to be accurate at the time of compilation and is provided in good faith. Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract. This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change. Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.

 

 

 

 

 

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Disclaimer:This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711.  The material contains general commentary only and does not constitute investment or any other advice.  Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors.  This information has been prepared without considering your objectives, financial situation or needs.  Please seek your own independent legal or financial advice before proceeding with any investment decision. The information is believed to be accurate at the time of compilation and is provided in good faith.  Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract.  This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change.  Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.

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