10. Cricket: The ICC T20 World Cup Championship will feature South Africa vs. India. The two teams are familiar with each other competitively and the final match will be held at the Kensington Oval in Bridgetown, Barbados on Saturday.
9. Selling Pressure: Lows are being challenged in Bitcoin as it hovers above 61,000.00 USD. Cocoa has stumbled dramatically this week and is below 8,000.00 per metric ton. Who will be courageous and wager on reversals higher? Speculators should remain cautious and understand price velocity that looks tantalizing can also prove costly to trading accounts.
8. Grounded: Boeing's Starliner remains docked to the International Space Station. Problems have plagued The Boeing Company the past handful of months, and their ambitions of becoming a power within NASA's explorations are also underachieving. SpaceX and Airbus are certainly paying attention to Boeing's ineffectiveness.
7. Teetering: The African National Congress and Democratic Alliance political parties in South Africa are feuding about how coalition power will be shared within the National Unity Government. The USD/ZAR has become volatile and is near 18.21000 as tensions mount and reversals hit. Financial institutions are waiting for an optimistic resolution, while also fearing the possibility of an abandonment to positive visions.
6. Inflation: Core Personal Consumer Expenditures Price Index statistics will be released today from the U.S. Yesterday's GDP Price Index came in slightly higher than anticipated which kept USD centric bullish positions relatively strong. However, other American statistics have weakened significantly and the mid-term looks troubling for the U.S economically. Stagflation remains a concern. The Federal Reserve is likely hoping to see today's PCE numbers come in weaker than expected, which would allow the central bank to hint towards Federal Fund Rate cuts later this year.
5. Ennui: President Macron could find his political power further eclipsed after France's first round voting results this coming Sunday. French voters appear ready to deliver a resounding message of dissatisfaction to the listless ruling government. Election turnout statistics should be watched. The second round of voting will be on the 7th of July. Financial institutions have braced for a shift of power already, but the EUR/USD will still produce volatility in the days ahead.
4. Geopolitical Risks: Russia, China and their allies are likely considering how they will prepare for a potential change in the U.S White House. Foreign policy following last night's debate between Biden and Trump must be planned. The fact that Trump is viewed as a rather flamboyant personality and not bound by cautious diplomatic attitudes creates a calculus that U.S adversaries will have to consider. While the potential exists that some nations may try to be more aggressive now, they also know that a Trump victory in November would change the international political landscape long-term.
3. Bank of Japan: The Core Tokyo Consumer Price Index produced a gain of 2.1%, which was above the forecasted amount of 2.0% earlier today. The BoJ continues to remain far too dovish regarding interest rate policy and financial institutions are buying the USD/JPY in massive waves. The USD/JPY is around 160.750 as of this writing and did traverse above 161.000 earlier, these are Forex levels not seen since the late 1980's for the USD/JPY. Japan's attempt to stimulate the economy with a weaker Japanese Yen may work, but the U.S and others may start to look at the BoJ's soft devaluation in a very negative light. Speculators of the currency pair need to be extremely careful, because the BoJ has the ability to intervene violently and cause momentary spikes which could prove deadly for day traders trying to take advantage of the outlandish bullish trend.
2. Behavioral Sentiment: Markets will be a looking glass into the future today, this as trading houses react to the realization that Donald Trump is likely going to be the next U.S President. While there are no guarantees regarding the U.S election outcome yet, the broad markets will certainly feel a shift of momentum in the coming days as large players adjust from a cautious approach to more aggressive postures regarding a Trump presidency. U.S equity indices remain near record highs, and the potential of a more business friendly White House which doesn't threaten tax hikes on U.S corporations will likely affect speculative outlooks.
1. Power: The resounding defeat of Joe Biden last night in the Presidential debate will spark a heated battle among Democratic power brokers. Biden will certainly be asked to step aside after last night's poor performance. However, Biden is stubborn, and Dem leaders like Nancy Pelosi and Barak Obama among others will have a difficult task to try and convince Biden for the sake of the nation that he must do the honorable thing and release his political delegates at the August Democratic National Convention in Chicago. If this doesn't happen, the Republicans may be able to achieve a landslide victory by taking control of not only the White House but the Senate too, along with maintaining power in the House of Representatives. All the camouflage in the world last night, including the liberal media, couldn't mask the inability of Joe Biden to be coherent.
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