Data this morning from research firm IHS Markit shows that British households in July saw their financial position dropping to 41.8 from 43.7 in June, the lowest reading since July 2014. Their economist Tim Moore said, ‘there are signs that squeezed household budgets and worries about earnings have started to spill over into consumer spending patterns’ with families postponing big ticket purchases (lowest since December 2013) and holidays.
On Friday German magazine Der Spiegel reported that EU antitrust regulators are investigating whether several German car makers are running a cartel. Not only on the cost of diesel emissions systems but on a host of other issues. Audi, BMW, Porsche and VW appear to be implicated.
DAX 30
Last week’s bearish engulfing candle and close exactly on first long term Fibonacci retracement support is another marginally negative sign.
SHORT TERM TRADER: New small short at 12225; stop above 12600. Target 11550.
POSITION TAKER: Square.
FTSE 100
The trend line taken from June 2016’s low is now potentially acting as resistance keeping the MACD in negative territory. Holding up a bit better than European bourses as sterling weakens against the euro.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Still overbought on the weekly RSI as it has been for much of this year. Muttering about risk in emerging markets is forcing the herd to take cover in what are seen equities that have potential growth.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Not entirely surprising that cable is struggling a bit at the psychological 1.3000 area. However, this has caused bullish momentum to slump and reports that bureaux de change in some regional UK airports are doling out less than a euro per pound. Ouch!
SHORT TERM TRADER: Square.
POSITION TAKER: Small long at 1.3090; stop below 1.2900. Target 1.3400.
EURO/US DOLLAR
The strongest weekly close since the very beginning of 2015 should make many sit up and listen. Let’s hope this upside break from an irregular triangle doesn’t turn out to be a false break as the dip over Christmas and New Year 2016/2017 was.
SHORT TERM TRADER: Small long at 1.1525; stop below 1.1450. Target 1.1700, maybe 1.2000.
POSITION TAKER: Square.
GOLD
Despite the series of descending highs over the last year there is nothing compelling about this chart. We shall allow prices to meander slowly for a lot longer.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
