Fundamental Trading Opportunities

Ok Sunday review on Cable;

BOE - negative rates won't happen for at least a year- as the systems needs to be updated to handle it.
But it will only happen if the bank feels that the economy needs the stimulus to hit the 2% interest rate level according to Bailey
So 15 July CPI figures are going to be important.
At the moment CPI is on a downward trajectory- although PMIs have improved- and the economy is opening.
The week of 15 July is going to be important.

Atm all the money is flowing out of the dollar and into risk currencies.
Bonds.....hmm....

Brexit negotiations back on again next week

1.2500 important level

Aussie cash rate meeting this week....

Macro Update
The Chancellor brought forward a mini budget which is really going to boost the economy
Cable rallied on the back of that – plus we got a great discount
The sell off today was really in respect of the credit markets they're not too happy at all.
David Frost travels to the EU next week to carry on with Brexit negotiations
So probably will not get too much in the way of updates tomorrow
Although there are meant to still be wide differences between the UK and the EU
That is all fully priced in- so any + news is a plus
Boris Johnson seems to want to have an Australia style agreement I don't think the city is too happy about that
Canadian employment figures are due tomorrow so assuming they look half decent we could have a trade on that side of things- Especially as oil is taking a real bath this afternoon

Got short on the DollarCad from the London open
Cable longs as well....

The issue is the credit markets......to use the technical phrase - they are stuffed atm
Although they seem to be more supportive during the London session
Will have to see how they treat CAD employment release
My thinking is they will have to buy it
Hopefully it will reach the POC
If UC rallies into this data release...then its likely to be a sell- and this would tie up with the UC seller at the London open

Right - they rallied UC into the data release and then sold it ….
they re-tested into the POC...which was nice
And now selling off nicely...

but there is a large POC....