- Draghi to announce his resignation in the Chamber tomorrow
- Canada June CPI +8.1% y/y +% vs +8.4% y/y expected
- US June existing home sales 5.12m vs 5.38m expected
- Eurozone July flast consumer confidence -27.0 vs -24.9 expected
- The final is set: It will be Sunak or Truss as the next UK Prime Minister
- Ford plans to cut as many as 8000 jobs in the coming weeks
- Did Joe Biden just say that he has cancer?
- US treasury auctions off $14 billion of 20 year bonds at a high yield of 3.42%
- Germany gas transportation company says it assumes Nord Stream will return at 40%
- US weekly crude oil inventories -446K vs +1357K expected
- IMF lowers German GDP forecasts but the economy still hangs on natural gas
- US MBA mortgage applications w.e. 15 July -6.3% vs -1.7% prior
Markets:
- Gold down $18 to $1694
- US 10-year yields up 1 bps to 3.03%
- S&P 500 up 23 points or 0.6% to 3964
- Nasdaq up 1.6%
- WTI crude oil down 92-cents to $99.84. August contract final trade settles at $102.26
- USD leads, EUR lags
Tomorrow is shaping up to be a huge day in Europe and for the euro with Draghi to reportedly resign (for real this time), the ECB decision and Russia's decision on Nord Stream. The mountain of risks led to caution in EUR trading as it lagged and Italian yields rose. EUR/USD fell 48 pips to 1.0176. It initially fell early in Europe, then bounced all the way back then made new lows late.
The UK heatwave continued at natural gas prices there shot higher. I don't think either of those were big drivers but cable fell back below 1.20 on moderate USD bids.
USD/JPY chopped sideways despite some volatility in yields. Rates were lower in the early going but rebounded to finish slightly higher across the curve. A strong bid in the 20-year sale added to the downward pressure late.
The commodity currencies gained early in Europe but gave it all back in North American trade despite the strong bid in risk assets. Some of that might have been softness in oil along with USD-flows into the suddenly-hot tech trade.
