IRAN: WSJ: White House Spurns a Return to June MOU

Fox News reports that US voters are “hitting the brakes on data centers, as more prefer taking time to address local concerns than rushing expansion to maintain a competitive global edge.” According to the survey, “By a 40-point margin, voters oppose building data centers in their area to support artificial intelligence (30% favor, 70% oppose)."

• Nvidia CEO Jensen Huang is on Capitol Hill today to meet with lawmakers amid growing congressional security concerns about AI. OpenAI CEO Sam Altman will be in DC tomorrow for meetings with Cabinet secretaries and lawmakers about regulation and his company’s newest models, per Politico.
• The AI-focused meetings come as volatility roils the global AI trade. Along with concerns over capital overinvestment, a catalyst is the rapid expansion of China’s domestic AI capacity, with the start-up Moonshot publicly releasing details of its latest AI model. Reports that China has produced a key chipmaking tool dominated by ASML also appeared to prompt an equity sell-off yesterday. If China has developed technology to manufacture immersion deep ultraviolet lithography (DUV) machines, it would remove a primary lever in the West’s export control toolbox to contain the development of Beijing’s tech and AI sectors.
• “Earnings from Meta, Microsoft, and Amazon expected later this week could fuel further volatility, amid fears of the “air being let out” of the AI bubble, a portfolio manager said,” per Semafor.

Figure 1: “Would you favor or oppose the building of a data center in your area to support artificial intelligence technology?”

Source: Fox News

• RES 4: 1.3658 High May 1 and a key resistance   
• RES 3: 1.3590 61.8% retracement of the Jan 27 - Jun 24 bear cycle
• RES 2: 1.3481/1.3558 High Jul 20 / 15 and a key S/T resistance 
• RES 1: 1.3376 50-day EMA  
• PRICE: 1.3299 @ 18:33 BST Jul 28
• SUP 1: 1.3274 Low Jul 28 
• SUP 2: 1.3239 76.4% retracement of the Jun 24 - Jul15 bull leg 
• SUP 3: 1.3191 Low Jun 29
• SUP 4: 1.3140 Low Jun 24 and a key support 

GBPUSD maintains a softer tone and this week’s move lower reinforces the current bear theme. Both the 20- and 50-day EMAs have been breached and, last Thursday’s extension resulted in a break of a key short-term support at 1.3342, the Jul 14 low. The clear breach of this level undermines the recent bull theme and highlights a stronger reversal towards 1.3239, a Fibonacci retracement. Initial resistance is 1.3376, the 50-day EMA.

• +9,375 TYZ6 107/110 strangles, 1-19 ref 108-19.5 at 1339:56ET