Amplify Trading Global Markets Review - 17th July 2019

Amplify Trading Global Markets Review - 17th July 2019

Today's Highlights

  • Iran closes door to Iran missile programme negotiations

  • Canadian Inflation drops short of expectations

  • US Building Permits plunge the most in 3 years

  • Oil DoEs data mixed

Macro Review

Market sending some sort of discomforting signals with the first times since I recall the start of the FED dovishness where too dovish news (bad building permits and bad Canadian inflation data 2.0 vs 2.6% expected for the Core headline ) spark a risk-off reaction sending gold back to 1425 after starting the morning open almost 10 dollars down. Sp500 and Oil slipped with the former breaching the 3000 level for the first time this week. Crude touched broke below the 57 levels for the first time in two weeks.

Global equities traded negative as risk-off revamps after weaker expectations of a quick resolution of the trade conflict between US and China. The risk-off move in US stocks happens as Earning seasons rolls in, so you can expect some profit-taking activity as financial reports fulfil traders expectations. Sp500 settled just around the 3000 levels dragged by losses in the property and insurance sector after the release of weaker than expected building permits data (-6.1% vs 0.1%).

The FX space was mainly led by weakness in the USD dollar which helped GBP and EUR to reverse some of yesterday's losses. JPY was the outperformer also sustained by risk-off tone. AUD extended gains helped by the positive performance in the metal space.

Looking over the commodity complex, Crude Oil slipped after a mixed DOE release which saw Crude inventories falling for the 5th week in a row. However, offset by the biggest build and Gasoline and Distillates since the start of the year. The move lower was also supported by the recent dovishness of Trump towards Iran Nuclear programme. Gold shoot higher bouncing from 1400 amid softer USD and risk-off

US Yields fell amid Risk-off tone remaining above 2%

____________________ EU Close

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