Trading Insights: Lots of cash on the sidelines could lift risk assets further

Commentary & insights

USD cash available for investments are at all time record highs.

Source: TradingView 30.06.2023 7:39 UTC

At the same time risk assets have been trending higher.

Source: Tradingview 30.06.2023 7:43 UTC

The potential for risk assets to surge even higher remains if all that cash sitting on the sidelines starts to flow into stock markets and other investments.

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Today’s economic calendar

Core personal consumption price index (PCE) on deck

• High price action across USD assets expected
• PCE is a key indicator of inflation and one that the US Fed pays a lot of attention to.
• With increasing speculation that the US Fed is not done hiking rates, if today's PCE data come in “hot” then that speculation could move a step closer to becoming a reality.

Source: TradingView / J. Knobel June 30 2023 7:58 UTC

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Technical trade commentary

Dowjones 30 index price remains contained in multi-month upward sloping price channel: Bullish outlook

• Dowjones 30 Index currently at $34,139. Upside prospects for a test of the 52 weeks near the $35,490s remains provided price can remain within the prevailing multi-month upward moving price channel (see chart). Downside risk seen below the $31,680 lower support.

Germany 40 index - bullish outlook on break above the €16,044 resistance

• Germany 40 Index currently at €16,034 and is facing very short term resistance at €16,044. A break above could increase the prospects for an extension move towards the €16,720s, downside risk seen below the €15,800 support.