The E-mini S&P spent the majority of yesterday

Market Commentary

The final EU services PMI for July came in at 54.2 vs. prev. 54.4. On a country by country basis, services PMIs came in stronger for Spain and Germany, remained unchanged for Spain and declined for Italy. UK Services PMI for July came in at 59.1 vs. prev. 57.9.

EU Retail Sales for Jun came in at 0.4% vs. prev. 0.3%.

The flow of macroeconomic data will pick up in the afternoon session, with ISM Non-Manufacturing being a key data release for the day.

Intraday Strategy: E-mini S&P

The E-mini S&P spent the majority of yesterday’s session in a phase of consolidation before extending the day’s trading range post cash equity open. While the price has remained accepted in the upper boundary of yesterday’s trading range in overnight trade, weaker Chinese and EU Services PMI data prompted a mild de-cline in tandem with European equity indexes.

For today’s session we aim to sell into a pullback to 1942.50. The main caveat for our approach is the event risk posed by the upcom-ing US data releases.

Intraday Strategy: DAX

The Dax continues to trade within a consolidation range, having extended the low briefly in yesterday’s session. A strong final revi-sion for the German Services PMI has been keeping the Dax rela-tively buoyant throughout the session so far.

Our strategy for the day entails selling into a pullback to R1, target-ing the pivot and yesterday’s low.

Intraday Strategy: EUR/USD

The EUR/USD has been declining sharply from the highs of the session so far today, with the onset of weakness in the currency pair coinciding with the release of weaker EU Services PMI.

Broad USD strength is evident in the FX space and this is exacer-bating the scale of the move lower in the EUR/USD.

For today’s session our approach is to sell into a pullback to S1, targeting S3 and last week’s low.

Technical Analysis: Nasdaq and DJIA

Nasdaq and DJIA continue receding from yesterday’s highs.

Technical Analysis: Bund and US 10-year T-note Futures

Bunds and US 10-year treasurys are paring some of yesterday’s gains.

Technical Analysis: GBP/USD and USD/JPY

GBP briefly strengthened against the dollar, but pared those gains following the emergence of broad USD strength.

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