GBPUSD TECHS: 50-day EMA Support Cracks
- RES 4: 1.3753 High High Jul 2
- RES 3: 1.3681 High Jul 4
- RES 2: 1.3636 76.4% retracement of the Jul 1 - Aug1 downleg
- RES 1: 1.3595 High Aug 14
- PRICE: 1.3428 @ 16:30 BST Aug 21
- SUP 1: 1.3410 Low Aug 21
- SUP 2: 1.3400 Low Aug 11
- SUP 3: 1.3346 Low Aug 7
- SUP 4: 1.3254 Low Aug 4
GBPUSD is in retracement mode. This appears to be a correction - for now - and a bullish condition remains intact. Recent gains resulted in a breach of 1.3589, the Jul 24 high, signalling scope for a climb towards 1.3636, the 76.4% retracement of the bear leg between Jul 1 and Aug 1. Clearance of this level would strengthen the S/T bull theme. Initial firm support at the 1.3450 50-day EMA has been cleared, and a confirmed break would signal a possible reversal.
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PIPELINE: Corporate Bond Update: $2B General Electric 2Pt Launched
- Date $MM Issuer (Priced *, Launch #)
- 07/22 $2B #General Electric $1B 5Y +47, $1B +10Y +62
- 07/22 $Benchmark NY Life 3Y +40, 3Y SOFR+66
- 07/22 $1.5B #Wells Fargo 2031-tap +72
- Expected Wednesday:
- 07/23 $Benchmark JFM (Japan Finance Org for Munis) 5Y SOFR+68a
US: Trump Admin Spotlights Business Equiptment Production As Growth Indicator
Trump administration economists are spotlighting a little-noticed piece of federal data on production of business equipment that “they argue shows a business investment surge is in the works — one that could have lasting consequences for U.S. growth”, according to Axios.
- Axios notes: “Industrial production of business equipment is an early indicator of capital spending — investments in property, equipment and technology — that ultimately fuels higher productivity and higher incomes."
- Axios adds: “Production of business equipment in the second quarter averaged 7.9% higher than in the final three months of last year, which works out to a 16.5% annual rate. That was the highest two-quarter rise since 1997, other than in the immediate pandemic bounce-back in 2020.”
- Axios has “learned that Treasury officials will soon begin highlighting this data as a key economic achievement of the administration… Trump administration officials view increasing business capital investment as the linchpin of their economic agenda, including ultimately driving gains in blue-collar wages.”
PIPELINE: Corporate Bond Update: $1.5B Wells Fargo 2031-Tap Launched
- Date $MM Issuer (Priced *, Launch #)
- 07/22 $Benchmark General Electric 5Y +47, +10Y +62
- 07/22 $Benchmark NY Life 3Y +40, 3Y SOFR+66
- 07/22 $1.5B #Wells Fargo 2031-tap +72
- Expected Wednesday:
- 07/23 $Benchmark JFM (Japan Finance Org for Munis) 5Y SOFR+68a
