Intraday Market Thoughts ArchivesDisplaying results for week of Jul 19, 2020
Silver's reflationary status is also shared by copper—known as the PhD in Economics for its close relation with the economic cycle -- but silver is considered as macro-driven as well as more speculative in nature. The reflation trade may get more wind in its sail if US crude closes above $42, which it currently seems to do.
Equity traders shift to this evening's earnings from Tesla and Microsoft, with an eye on number of deliveries and the extent of earnings losses for the former; and cloud services sales for the latter.
DOW30, currently +3% above its 200-DMA, faces next crucial resistance at 27150/80, with further upside seen if oil closes above $42. SPX, currently +8% above its 200-DMA is far from filling the Feb gap, highlighted by the 3335-3269.Italy, the biggest gainer of the EU package will get over EUR 200 bn with as much as EUR 80 bn in grants and Greece gets over EUR 30 bn in total. This is further narrowing Italian bond spreads and fortifying EUR crosses.
Austria, Denmark, Netherlands and Sweden have agreed that the EU's EUR 750 bn stimulus program will comprise of EUR 390 billion in grants and the rest in loans. It all changed for EURUSD on June 23rd when it held the 1.1180s upon Germany's proposed stimulus. It was on June 23rd when Ashraf called mentioned EURUSD's technical flawlessness.