US economic calendar slows for two days before the big CPI read on Wednesday, states Bill Baruch, president of BlueLineFutures.com.
Nonfarm Payrolls for June on Friday beat expectations with 372k jobs created versus 238k expected. Manufacturing topped at 29k versus 15k. Wage Growth was firm at +0.3% MoM, in line, and 5.1% YoY versus 5.0% expected. However, May was revised higher by 0.1 for both.
Wages are broadly sticky, but some pockets are beginning to slow such as warehouse and leisure/hospitality employees.
Despite the strong data, the US Dollar Index finished -0.13% and -0.74% from its session high. The dollar is not subdued long as Asia and Europe again lift the Dollar Index to fresh 20-year highs. The strong data from last Friday helped lift the ten-year yield for a third straight session, pinging a high of 3.10%. Look to the psychological 3.0% as a barometer of risk-on/off tailwinds.
Liberal Democratic Party leads elections in Japan, strong turnout on the heels of Abe's assassination.
The energy crisis and bullseye on parody with the USD continuing to drag the Euro through the mud. Gas prices going out to 2023-2024 built their premiums, high ppb is here to stay.
Global unrest is spreading mostly due to food shortages, the increasing cost of living, and poor political climate policy, from Sri Lanka to Italy to the Netherlands.
Virus update: mass testing in China has risk assets on edge; if you test, you will find cases. Restrictions have been implemented across many Chinese cities, impacting nearly 30 million people in light of a new variant detected in Shanghai.
The US Treasury will auction $43 billion in three years today and $33 billion in ten years tomorrow. Keep your eyes peeled for opportunities.
Earnings season kicks off this week:
PepsiCo (PEP) earnings drop today and Delta Airlines (DAL) Wednesday.
JPMorgan (JPM), Morgan Stanley (MS), Taiwan Semiconductor (TSM), and more Thursday
United Healthcare Incorporated (UNH), Wells Fargo (WFC), Citi (C), and more Friday.
Learn more about Bill Baruch at Blue Line Futures.
