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Market news: Federal Reserve Chairman Warsh told staff in a memo that he would engage in dialogue on Fed reform with a “clear eye” while adhering to the Fed’s best traditions.① Iran 1. Iran says repairs to damaged energy facilities are progressing faster than expected. 2. Explosions were heard on Qeshm Island in southern Iran. ② United States 1. US media reports a US pilot was shot down twice: once by friendly fire and once by an Iranian attack. 2. The US military claims to have attacked an Iranian oil tanker, rendering it unable to navigate. 3. US Central Command: Since imposing a blockade on all maritime traffic to and from Iranian ports on April 13, the US military has crippled six merchant ships and forced another 122 to change course. ③ Israel 1. Israeli Defense Minister Katz: If northern Israel is attacked again, strikes will be launched against the suburbs of Beirut, Lebanon. The US has "approved" the policy of striking the Beirut suburbs. 2. Israel clarifies reports of a phone call between Trump and Netanyahu. Trump did not comment on the imprisonment issue, nor did he claim that Netanyahu is hated globally. 3. Israeli Foreign Ministry: Despite yesterdays renewed ceasefire announcement, Hezbollah continues to violate the ceasefire agreement. Just last night, Hezbollah launched multiple missile and drone attacks from Lebanon into Israeli communities. 4. The Israeli Prime Minister vowed the Iranian regime would fall. 5. Netanyahu: Iran will not be allowed to threaten Israels survival. ④ Strait of Hormuz 1. Iranian media: Applications for passage permits to the Strait of Hormuz are now open. ⑤ Ceasefire negotiations 1. According to Irans Meh News Agency: Sources say Irans final text is still under discussion in Tehran and has not yet been responded to by the US. 2. Iranian media: Information exchange between Iran and the US has been interrupted for several days. 3. According to Israels i24News: Israeli and Lebanese officials are holding their fourth round of talks in Washington, D.C. 4. Rubio: The US and Iran are still talking, and it is uncertain when an agreement will be reached. 5. According to AFP: Hezbollah in Lebanon will not accept a "partial ceasefire" with Israel. 6. Trump demands a stronger commitment from Iran on the nuclear issue. 7. Trump: "The US and Iran stopped talking a few days ago" is fake news; dialogue between the two sides has been ongoing. ⑥ Other situations: 1. Bahrains Ministry of the Interior: Due to the current security tensions, citizens are prohibited from traveling to Iran and Iraq. 2. The UAE plans to build an oil product pipeline that bypasses the Strait of Hormuz.Canadian Minister for Trade with the United States, Robert LeBlanc: We are confident in discussing rules of origin for automobiles with the United States and Mexico.Canadian Minister for Trade with the United States, Robert LeBlanc: We are in bilateral discussions with Mexico regarding the United States-Mexico-Canada Agreement (USMCA).Canadian Minister for Trade with the United States, Robert LeBlanc: We have been preparing for the U.S. Section 301 tariff investigation.

Two Trades to Watch: DAX, GBP/USD

Jimmy Khan

May 07, 2022 10:43


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The DAX is falling as industrial output declines.


After a slaughter on Wall Street that saw the Nasdaq finsh 5% down, European equities have begun in the red, extending losses from the previous day.


Fears of inflation, stagflation, and recession are weighing on the market as we approach the weekend. The DAX is expected to shed 1.4 percent this week, marking the fifth consecutive week of losses.


In March, German industrial output decreased -3.9 percent on a month-over-month basis, down from 0.2 percent in February and considerably below the -1 percent drop forecast. The negative report comes on the heels of a sharp drop in German manufacturing orders in March. The data represents the economic effect of the Russian conflict on Germany and the Eurozone as a whole.


Germany does not have any additional statistics due today. Sentiment and the US NFP announcement will affect European indexes.