Currencies
EUR/USD – moved up in tandem with the GBP after it became clear that Theresa May will become Britain’s next PM. This became clear just as we approached the support around the 1.10 level. We are currently nearing the resistance around the 1.1116 level.
USD/JPY – moved up after PM announced that he will soon announce new stimulus measures, which he is now able to pass through without a problem after having secured a supermajority in the upper house. This has helped to break through the resistance around the 101.26 level. The next resistance levels can be found above the 104 level.
GBP/USD – has moved up after the announcement that Andrea Leadsom will not contend for the leadership of the conservative party. This paved the way for Theresa May to become Britain’s next PM. This will happen sooner than anticipated, as later in the day PM Cameron announced he will be stepping down this Wednesday. This has caused the GBP to move up, as it lifts part of the political uncertainty. However, on the other hand we shouldn’t forget that this could pave the way for the UK to enact chapter 50 sooner rather than later, paving the way for a Brexit. After struggling with the 1.30 level for quite some time, we are currently trading above this level.
AUD/USD – moved up and has been in somewhat of an uptrend since late June. A lot will depend on the data out of China which will be released tomorrow during the night/morning.
Indices
DAX 30 – indeed tried to breach the resistance around the 9815 level, but was unable to do so. With still positive sentiment in the markets we could see another attempt today.
Dollar Index – is moving down at the moment, as we can see there is some resistance around the 96.5 level.
S&P 500 – reached an all-time high during trading yesterday, but closed a bit below it. It is also the start of the earnings season so there can be volatility in certain stocks and could boost the equity market or do the opposite, depending on the results.
Commodities
Gold – had the worst day since mid-June as the USD strengthened somewhat and also the fear in the market dissipated somewhat. In addition to that the renewed expectation for monetary stimulus is moving some focus towards equities and also the events in Japan resulted in less demand for gold.
Oil – was trading beautifully technically, as it moved up after reaching the support around the 44.42 level and then moved back up to test the resistance around the 45.80 level. We are currently moving down again and trading below the 45 level. A lot of attention will go out as usual to the crude stock, although we have seen in recent weeks that there can be a large discrepancy between the crude stock and the inventories.
Stocks
Boeing (NYSE:BA) – is in a strong competition with Airbus to close a deal estimated worth some $12 billion to supply SpiceJet with 100 aircraft. In addition Boeing is in negotiations with Qatar Airways for the sale of 30 Boeing 737’s. Overall Boeing is forecasting that over the next 20 years nearly $6 trillion will be spend on buying new aircraft.
Tesla (NASDAQ:TSLA) – stays in the news, as all news is good news? This time the news is not that good as it is likely to be investigated by the SEC regarding the fatal car crash.