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 Following Joe Biden’s withdrawal from the re-election race and his endorsement of Vice President Kamala Harris, the US Dollar depreciated while Treasuries experienced an increase.In an effort to stimulate economic growth, the People’s Bank of China decided to lower a short-term rate for the first time in over a year, resulting in a two basis point decrease in the yield on China’s 10-year sovereign note. Foreign ownership in China’s second-largest bond market reached a record high of 4.3 trillion yuan ($591 billion) in a single month, marking the tenth consecutive month of increased investment by international investors.Amidst a downturn in the technology sector, Chinese stocks declined, contributing to overall regional losses spanning from Japan to Australia. The decline in Taiwan Semiconductor Manufacturing reached 3.3%.This week, financial markets will be influenced by the U.S. Federal Reserve’s preferred inflation gauge, flash PMIs for major economies, U.S. second-quarter earnings, and the Bank of Canada’s rate decision. The Fed will enter a blackout period ahead of its July 30-31 meeting, leading to a lull in major central bank speeches, while the global data calendar is relatively light. In the U.S., the focus will be on Friday’s core PCE price index as the Fed considers cutting interest rates due to improved inflation trajectory. Other releases include existing home sales, July S&P Global flash PMIs, trade data and new home sales, durable goods and advance Q2 GDP, personal consumption, and the final reading of the University of Michigan July consumer sentiment and inflation expectations. In Europe, key releases include eurozone flash July consumer confidence and PMIs, German retail sales, and the Ifo survey. The UK’s only top-tier data is flash July PMIs. Japan will publish flash PMIs and Tokyo July CPI. The Bank of Canada will meet on Wednesday, with markets pricing in a 92% probability of a 25 basis-point rate cut following a slower-than-expected rise in consumer prices in June..
 Overnight Newswire Updates of Note

(Sourced from Bloomberg, Reuters and other reliable financial news outlets)
 FX Options Expiries For 10am New York Cut (1BLN+ represent larger expiries, more magnetic when trading within daily ATR)

CFTC Data As Of 16/7/24

Technical & Trade ViewsSP500 Bullish Above Bearish Below 5480

EURUSD Bullish Above Bearish Below 1.09

GBPUSD Bullish Above Bearish Below 1.29

USDJPY Bullish Above Bearish Below 156

XAUUSD Bullish Above Bearish Below 2345

BTCUSD Bullish Above Bearish below 62000

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