Though many professional forecasters had expected New Zealand CPI inflation to drop in Q2 this year, the slump from 2.2 per cent in Q1 to 1.7 per cent had not been factored in. In fact that was the one and only time it had notched up gains of over 2 per cent since 2012. Not that the antipodean nation has a great track record though, with retail price rises swinging between 0 and 5 per cent over the last quarter century. Yesterday EU June inflation was confirmed to be running at 1.3 per cent, with big variations across the region, and today the ONS releases UK inflation, expected to remain at 2.9 per cent.
First-hand experience this month so I’m not surprised to hear that British motor insurance premiums have soared in Q2, taking them to a new record high according to the Association of British Insurers. They are up 11 per cent over the last year to an average £484.
DAX 30
Bullish momentum on the daily chart has eased and perhaps we are in the process of pencilling in a new interim high at the 12680 level.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Spectacularly dreary as we hover around the 7400 area.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 7325; stop above 7455. First target 7125.
S&P 500
Holding in the tiniest of ranges at the record high and not yet overbought on the RSI.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Holding above what had been resistance in May thus keeping momentum bullish.
SHORT TERM TRADER: New small long at 1.3100; stop below 1.3000. Target 1.3400.
POSITION TAKER: Small long at 1.3090; stop below 1.2900. Target 1.3400.
EURO/US DOLLAR
Pushing on up to a new high for this year on rising bullish momentum as President Trump suffers another set-back in his attempt at overhauling Obamacare.
SHORT TERM TRADER: New small long at 1.1525; stop below 1.1300. Target 1.1700, maybe 1.2000.
POSITION TAKER: Square.
GOLD
Rallying in reply to US dollar weakness, the US dollar index now at its weakest since September 2016.
SHORT TERM TRADER: Square.
POSITION TAKER: Stopped out of short position at a profit.
