Amplify Trading Market Wrap - 2nd July 2019

Amplify Trading Market Wrap - 2nd July 2019

Today's Highlights

  • Opec extends cuts till March 2020

  • ECB Policy Makers "No need to cut in July"

Macro Review

Tough trading conditions out there today with most of price action driven by end of the month flows and profit taking in the mix considering the upcoming US holiday on Thursday and the US Job report on Friday. June will mark the month of the "Buy-Everything Fobia" wth 38 assets ending the month with a positive total return - according to Deutche Bank.

US Equities traded choppy amid light volumes and profit taking activity ahead of US market closure and NFP on Friday. SP500 traded in a relatively tight range amid lack of clear driver.

Lack of direction in the US Dollar caused erratic price action over the FX complex. Notably EUR broke back below the 200 DMA and 1.1400 handle overnight amid weaker round of Chinese and EU data. The single currency failed to break above yesterday's high despite ECB policy maker comments, however in line with current forward guidance of keeping rate at current levels until mid-2020. AUD broke above the 0.700 level despite the overnight rate cut from the RBA, expectioning to further cuts ahead. 

Crude Oil dropped plunged below the 57 level as traders book profit after Opec cut extensionGold rallied 20 dollar back above the 1400 amid a very illiquid session exacherbated by late in the session risk-off tone and mild USD wekaness.

The Yields drama continues with the Spanish 10Y now approaching the total amount of the world negative yielding debt at 13 trilion USD. Fixed Income maket to be watched very closely in the next months.

EU Close

If you missed the morning briefing from the desk click HERE

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