Market Update – July 6 – Dollar Dominates on Global Recession Fears

USD moves to 20-year highs (USDIndex 106.34), US Stocks fell 2% on open but closed positively (NASDAQ +1.75%). Global PMI data overall in line. European markets fell 2%+ & Asian markets are negative (Hang Seng -2.38%, Nikkei -1.2%).  Yields closed down -2.77%. Oil tanked -8.2% trading under $100, Gold closed under $1765 & BTC rotates at $20k. EUR fell to new 20-year lows with parity in sight. Heavy fighting in Donetsk adds to the sombre mood. UK PM lost two cabinet ministers adding to woes for Johnson and Sterling.

USDIndex tested 106.55 and remains on Bid at 106.25 now. 
EquitiesUSA500 closed +6.0 (3831), after a weak day, US500FUTS at 3818 now.
Yields 10-year yield lower, closed at 2.808% , trades at 2.802% now.   
Oil & Gold had weak sessions – USOil tanked under $100.00 to $97.30 lows, back at $100 now. Gold fell to 1762 earlier, 1768 now. 
Bitcoin continues to trade around $20K, testing $20.1K today.
FX MarketsEURUSD remains pressured at 1.0260,  USDJPY rallied from under 135.00 to 135.80 now. Cable trades at 1.1932 now.

Overnight – German Factory Orders better at 0.1% from -1.8%.

Today – EZ Retail Sales, US ISM Services PMI, FOMC Minutes, Speeches from Fed’s Williams & BoE’s Pill.

Biggest FX Mover @ (06:30 GMT) CADJPY (-0.42%). CAD JPY weaker today. Fell from allied from under 106.00 Tuesday to 103.50 today before recovering.  MAs aligning lower, MACD histogram positive & rising, RSI 63.00 & rising, H1 ATR 0.216, Daily ATR 1.402.

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Stuart Cowell

Head Market Analyst

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