This morning the UK’s Society of Motor Manufacturers and Traders announced that output in the year to July fell by 11 per cent. It did point out that British car production in July last year had been especially strong, while this year exports had slipped 4.2 per cent while domestic demand dropped 35 per cent. Model changes, seasonal adjustments, and emissions changes all contributed to this collapse.
Pressure on some emerging market currencies is back in the limelight this week. The Turkish lira hit another record low on disappointing statements from the central bank; likewise, the Argentine peso, forcing President Macri to ask the IMF to speed up payment on agreed loans to help the country’s exceedingly weak economy. Today it’s the Indian rupee’s turn to hit its weakest level against the US dollar.
DAX 30
Most odd as we’ve just sort of stopped around 12600.
SHORT TERM TRADER: Short at 12635; stop above 12650. Target 12200.
POSITION TAKER: Square.
FTSE 100
A variation on an evening star 3-candle formation since Monday, with a hanging man at its centre; slightly bearish but still plodding inside the gently-sloping downtrend channel.
SHORT TERM TRADER: Square.
POSITION TAKER: Small short at 7799; stop well above 7800. First target 7400, then 7100.
S&P 500
Breaking above the top of the broadening formation as we rally to a new record high.
SHORT TERM TRADER: Square.
POSITION TAKER: Stopped out of my short position at a loss.
BRITISH POUND/US DOLLAR
Bullish momentum appears to have kicked in as cable rallies to the long-term trend line and just shy of the descending trend line that’s capped this summer. Now we would expect it to consolidate at a second slightly higher level than last week’s one.
SHORT TERM TRADER: Took neat profits at 1.3000 and will now look to see where we close on Friday to decide if I’ll buy some more.
POSITION TAKER: Square.
EURO/US DOLLAR
Dancing around above the top of the old symmetrical triangle with yesterday afternoon’s rally from 1.1650 likely to act as a springboard for the next step higher.
SHORT TERM TRADER: Long at 1.1620; stop below 1.1600. Target 1.1790.
POSITION TAKER: Square.
GOLD
Understandable hesitation as the US dollar gains against some currencies and weakens a little against others.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
