Developed macro
1. ‘Risk-off’ mode dominated in overnight trading session
2. EC business confidence surveys widely expected to deteriorate in July
3. German labour market will likely reveal further improvement
Interest rate strategy
1. 10Y Bund-Treasury widening looks set to continue in current risk-off environment
2. Italian auctions should pass test, but peripheral pressure unlikely to ease
3. Eonia remains under downward pressure, as Euro banking tensions increase
FX strategy
1. The USD could find significant relief from any debt ceiling / deficit reduction deal
1. Worries about the eurozone periphery continue to limit the EUR’s ability to benefit from the USD’s woes
2. Pressure for FX intervention in Japan has grown but chances of success are limited
Emerging markets
1. Thai Jun IP to print soft at -4.7% YoY; Hong Kong Jun exports to be weak at +5.6% YoY
2. BSP to keep rate unchanged at 4.5%, but could raise the reserve ratio
3. Brazil announced measure to try to curb BRL appreciation
Commodity markets
1. Impact of a US credit downgrade is bullish for gold
2. Copper: No end in sight to a strike at the world’s largest mine
3. Bearish Weekly API oil statistics
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http://www.easyforexnews.net/wp-content/uploads/2011/07/WMT_2011-07-28.pdf
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