Market Commentary

European equity indexes and US equity index futures are trad-ing with gains so far today, despite weaker Q2 GDP prints for the Eurozone and Germany. Sentiment continues to predomi-nate as the driving force behind the recent extension higher.

German GDP contracted by 0.2% Q/Q in Q2 vs. an expansion of 0.7% in Q1. EU GDP was flat Q/Q in Q2 vs. prev. 0.2% in Q1.

Political commentary continues with regard to Ukraine and Russia, with Putin’s recent comments highlighting that he will “do utmost to stop bloodshed in Ukraine”. While these com-ments are not backed by anything material, markets seem to be content with taking these comments in in the context of a path to resolution.


Intraday Strategy: E-mini S&P

E-mini S&P broke above the 18th July low (1942.50) yesterday and closed above the level. US equity index futures and EU equity in-dexes are positive on the day so far despite the earlier releases of weaker German and EU GDP figures for Q2.

Our strategy for the day ahead entails buying into a pullback to the pivot, targeting R1 and R2.

E-mini S&P


Intraday Strategy: DAX

The Dax seems to have discounted weaker German Q2 GDP.

Our strategy for the day ahead entails buying into stabilization fol-lowing a pullback to the pivot.

DAX


Intraday Strategy: EUR/USD

The EUR/USD has been oscillating between last week\’s low and the 1.34 handle so far throughout this week, with limited directional-ity, despite a couple of strong spikes to the upside (primarily as a function of USD weakness).

For today’s session we prefer to buy into signs of stabilization at yesterday’s low, targeting the pivot and the 1.34 handle/R1.

EURUSD


Technical Analysis: Nasdaq and DJIA

Nasdaq and DJIA futures are breaking to new highs of the day ahead of the open.

Nasdaq

DJIA


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

German 10-year yield is below 1% this morning. September Bund futures testing the 150.00 handle. US 10-year treasury futures are moving higher on correlation.

Bund

US 10-year T-note


Technical Analysis: GBP/USD and USD/JPY

Aggressive sterling weakness is abating today, allowing GBP/USD to stabilize just below the 1.67 handle.

GBPUSD

USDJPY

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