Funding overdrafts – The level of daylight overdrafts — when a bank withdraws more money than it has in its account at the Fed. They recently reached levels and behavior similar to pre-crash conditions of 2019. A bit concerning, it should be noted that major banks also recently resoundingly passed stress tests which is an offset should shock conditions arise, either sudden or gradual. Likely temporary. Also, the two heavy factors of war and elections have not stopped the steady purchasing of US, Euro, and MSCI stocks.
I am fixated on July 15th as having the potential for either strong buying or a shift toward risk off, for a variety of reasons including that fund managers and the like will begin to return from early vacations.
One of those Mondays…Here is my Power of 50 article as GBPUSD, EURUSD, AUDUSD and USDJPY all paused around or shy of respective 50 levels in what turned into a slow drip, paint drying session.
FWIW the softer GBPUSD tine appears toi be coning from EURGBP buying.
A look at the day ahead in U.S. and global markets from Mike Dolan
Wall St stocks start the week surfing new records into another earnings season and Federal Reserve testimony, while surprise French election results saw the country’s left-wing thwart Marine Le Pen’s far right and leave a hung parliament there.
AUDUSD 4 HOUR CHART – STILL BULLISH
AUDUSD finds support by being the onky major CB with talk oif potential rate hikes rather than rate cuts.
As I noited, I had to go to the weekly to find the next key target, which is not until nearly .6900.
In the sbsencde of key resistance, the new level to watch is .6761 high.
Expect support as long as it trades aboive .6710.
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