Again, ES (SPX futures) which hit $1705 yesterday morning and closed at $1702.75 at 4 p.m. are sitting at $1698.50 right now.
There was a ramp effort, 3C called it perfectly and trading overnight futures should maybe bean addition to the service, I'll just have to learn how to sleep an hour a day...
It seems this was led by littler more than JPY weakening for a bit overnight...
I imagine there may have been some more carry activity (closeouts) as the RBA cut an expected 25 bp, the AUD looked like this which helped the AUD/JPY pair at the exact right time
If you look at the 3 major carry crosses, they all faded at 5 a.m.
Some call this the Summer Doldrums, I haven't seen those for what seems like maybe 5 or 6 years, I'm not so sure, to me it feels like retail just has no more dry powder and pros are on the other side of the fence. If it is the Summer Doldrums, uh! Those are depressing, but I don't think so, I think it is the available dry powder killing demand from the only corner there is, retail.
Overnight the PBoC added another $12bn CNY through a reverse repo as concerns over inter-bank liquidity remain, this was at a lower rate of 4% vs. 4.4% on the previous injection of $14bn CNY through reverse repos.
Germany STUNNED with Factory Orders which came in at +3.8% vs consensus of 1%, but if it weren't for the Paris Air show, they would have come in at -0.7% so in the background you hear the hiss of air escaping the enthusiasm or that declining, "Whaa, whaa, whaaaa...." sound.
Italian GDP was slightly better at -.2% vs consensus of .4%, it seemed the EUR/USD got a little boost around the European open.
The June International Trade Data came out at 8:30 this morning (EDT) ...
| Released On 8/6/2013 8:30:00 AM For Jun, 2013 | ||||||||||
Exports were up at a record high of $191.2 bn which is $4.1 bn more than May, imports declined by -5.8bn to $225.4bn leaving a deficit of -$34.2bn , almost 25% lower than the $44.1 bn in May, giving us the lowest Trade Deficit in almost FOUR YEARS... This is the biggest beat since 2005, but is it because of the revised GDP measures? Q2 GDP did rise after last week's revision of GDP going back, I don't recall, something like the early 1900's... End result, THE ECONOMY IS GROWING... well, as long as you are allowed to re-write GDP figures at whim and will (most likely). Like I said, when the F_E_D switched from a Calendar date guidance to a economic model for policy, it allowed all kinds of shenanigans that would allow them to create whatever circumstances they needed to withdraw from the scene, this is when I was first SURE they were looking for a way out, when they started with "talk" about using a new method based on easily manipulated economic data. How this doesn't kill QE-fed bulls, I don't know, I think it will, but there was surprisingly little reaction except for a rise in rates, the $USD reacted a little, but gold and Index futures barely budged, still it can't be good for the QE crowd and is obviously "Taper On". So here we go, I have alerts going off, Financials down, AAPL hit a trigger, USO and JPM mentioned yesterday as very likable as a short in yesterday's area... Here we go... We'll see about the "Summer Doldrums" after the close. |
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