FED: Statement Updates Nod to Moderation In Domestic Demand
Jul-30 18:06
As we'd suggested, the new statement cleans up the language in the first two paragraphs a little, with a slightly dovish twist.
- It maintains the language around the "swings in net exports", but makes note of growth in economic activity having "moderated in the first half of the year" (versus the prior mention of "has continued to expand at a solid pace"). That's potentially a nod to softer domestic demand amid the swings in headline GDP. We expect this to be addressed by Powell in his press conference at 2:30pm.
- The language about the labor market (unemployment rate remains low, conditions remain solid) and inflation (remains somewhat elevated) are unsurprisingly unchanged.
- The removal of "has diminished but" re uncertainty (which still "remains elevated") in then 2nd paragraph was fully expected, and the two dissents by Waller and Bowman in favor of a cut were also expected by most.
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PIPELINE: Corporate Bond Update: $4B SMFG 5Pt Launched
Jun-30 18:01
- Date $MM Issuer (Priced *, Launch #)
- 06/30 $4B #SMFG $700M 6NC5 +87, $900M 6NC5 SOFR+119, $700M 8NC7 +97, $700M 11NC10 +102, $1B 21NC20 +102
- 06/30 $2.5B Venture Global Plaquemines 8.5NCL 6.5%a, 10.5NCL 6.75%a
- 06/30 $1.5B *ABN Amro $750M 3Y +50, $750M 3Y SOFR+75
- 06/30 $1.25B #Niagara Mohawk Power $500M +5Y +85, $750M 30Y +120
- 06/30 $1B #SoftBank $500M 5Y +90, $500M 10Y +110
EURGBP TECHS: Bullish Trend Condition
Jun-30 18:00
- RES 4: 0.8648 76.4% retracement of the Apr 11 - May 29 downleg
- RES 3: 0.8624 High Apr 21
- RES 2: 0.8592 61.8% retracement of the Apr 11 - May 29 downleg
- RES 1: 0.8581 High Jun 30
- PRICE: 0.8577 @ 17:02 BST Jun 30
- SUP 1: 0.8507/8478 20- and 50-day EMA values
- SUP 2: 0.8459 Low Jun 11
- SUP 3: 0.8407 Low Jun 4
- SUP 4: 0.8356 Low May 29 and the bear trigger
The trend condition in EURGBP remains bullish and the cross is trading closer to its recent highs. Moving average studies have recently crossed and are currently in a bull-mode position - this reinforces the current uptrend. Scope is seen for a test of 0.8592 next, a Fibonacci retracement. On the downside, support to watch lies at 0.8478, the 50-day EMA. Clearance of this level would highlight a possible reversal.
CARNEY SAYS CANADA AND US MAKING PROGRESS TO FINAL TRADE DEAL
Jun-30 17:58
- CARNEY SAYS CANADA AND US MAKING PROGRESS TO FINAL TRADE DEAL
