US: Corporate Credit Update: Holding Steady

Investment-grade corporate credit risk running marginally higher at the moment, lower half of range as major stock indexes trading mildly weaker after midday: SPX eminis trading -3.5 (-0.1%) at 3830.5; DJIA -74.25 (-0.24%) at 30893.34; Nasdaq -7.8 (-0.1%) at 11314.81.

• Investment grade risk measured by Markit's CDXIG5 index at 99.802 (+0.707); CDXHY5 high yield index at 97.379 (-0.097).
• Outperforming credit sectors (tighter or least wide): Financials subordinated and Sr (-2.6) Technology, Communications and Health Care all (-2.1)
• Lagging sectors (wider or least narrow): Energy (-0.4), Utilities (-0.6) and Industrials (-1.0).

• RES 4: 1.0787 High May 30 and a reversal trigger
• RES 3: 1.0774 High Jun 9
• RES 2: 1.0615 High Jun 27 and a key resistance
• RES 1: 1.0359/0497 Low Jun 15 / 20-day EMA
• PRICE: 1.0194 @ 16:13 BST Jul 6
• SUP 1: 1.0162 Low Jul 06
• SUP 2: 1.0102 1.236 projection of the Jun 9 - 15 - 27 price swing
• SUP 3: 1.0035 Bear channel base drawn from the Feb 10 high
• SUP 4: 1.0000 Parity and a key psychological support

EURUSD continues to weaken. Tuesday's impulsive sell-off resulted in a break of 1.0350, the May 13 low, to confirm a resumption of the primary downtrend. This week’s move also highlights an acceleration of the downtrend and the pair is touching the lowest levels in 20 years. With 1.0200 breached, the focus shifts to 1.0102, a Fibonacci projection. Resistance is seen at 1.0522, 20-day EMA. Initial resistance is at 1.0359.

First Minister of Scotland Nicola Sturgeon has posted a letter from the office of UK Prime Minister Boris Johnson rejecting Sturgeon's request for a second Scottish Independence referendum.

• Sturgeon: "Just received this from Johnson (one of his last acts as PM?). To be clear, Scotland will have the opportunity to choose independence - I hope in a referendum on 19 October 2023 but, if not, through a general election. Scottish democracy will not be a prisoner of this or any PM."
• Johnson wrote to Sturgeon: "I cannot agree that now is the time to return to a question which was clearly answered by the people of Scotland in 2014."
• The letter can be read on Nicola Sturgeon's twitter account here: https://twitter.com/NicolaSturgeon/status/15447228...