A look at the day ahead in U.S. and global markets from Mike Dolan
Wall St stocks start the week surfing new records into another earnings season and Federal Reserve testimony, while surprise French election results saw the country’s left-wing thwart Marine Le Pen’s far right and leave a hung parliament there.
AUDUSD 4 HOUR CHART – STILL BULLISH
AUDUSD finds support by being the onky major CB with talk oif potential rate hikes rather than rate cuts.
As I noited, I had to go to the weekly to find the next key target, which is not until nearly .6900.
In the sbsencde of key resistance, the new level to watch is .6761 high.
Expect support as long as it trades aboive .6710.
THIS WEEK’S MARKET-MOVING EVENTS (all days local)
Fed Chair Jerome Powell will speak Tuesday on Capitol Hill in his semiannual monetary policy testimony. His assessment on disinflation, whether it is resuming, will be the central focus. His testimony will be followed on Thursday by US consumer prices where monthly rates are expected to remain cool but not the annual ex-food ex-energy core which is seen rising to 3.5 from 3.4 percent.
The Reserve Bank of New Zealand is expected to hold policy steady on Wednesday as is the Bank of Korea on Thursday.
Chinese consumer prices on Wednesday are expected to be quiet and flat while Chinese merchandise trade, estimated for Friday, is expected to show a strong rise for exports and also a rise for imports. Monthly UK GDP on Thursday is expected to remain flat, while India’s consumer prices on Friday are expected to remain steady and high.
Econoday
LONDON, July 7 (Reuters) – France was on track for a hung parliament in Sunday’s election, with a leftist alliance unexpectedly taking the top spot ahead of the far right, in a major upset that was set to prevent Marine Le Pen’s National Rally (RN) from running the government.
EURUSD 1 HOUR CHART – OOPS!
EURUSD seemed setup for a gap to the upside but the surprise French vote saw a gap to the downside.
To fill the gap, 1.0838 needs to trade.
On the downside, 1.08 is the obvious pivotal level with support at 1.0794=99 chart support.
This is a tough one to call until the political dust settles so toi keep it simple:
Keeps a bid while 1.0799 holds, below it says that politics rules.
On the upside a move above 1.0850-52 would say politics doesn’t matter.
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