Having kept the Fed Funds target unchanged at a band between 2.25 and 2.5 per cent, in the subsequent press meeting Mr Powell said, ‘’we suspect transitory factors may be at work. If we did see inflation running persistently below, that is something the committee would be concerned about and something we would take into account when setting policy’’. He also noted that the US job gains have been ‘solid, on average’ with solid economic activity. On Tuesday President Trump suggested the Fed should cut interest rates by 1 per cent because, at current levels, it was holding back the economy.
Data published in Europe this morning showed that annualised retail sales in Germany and Switzerland fell in March. This has often been the case for the latter, dropping 0.7 per cent, over the last four years or so. In Germany, where sales fell 2.1 per cent, the reading is towards the very lower end of the 20-year history of this notoriously erratic series.
DAX 30
Stalling yesterday but still overbought.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Suddenly slipping below the 7400 level and settling just under trend line support – turning momentum bearish.
SHORT TERM TRADER: Looking to re-sell if Friday’s close is below 7300.
POSITION TAKER: Square.
S&P 500
Retreating a tad from the record high did just enough to cancel the overbought situation.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Momentum just squeezed into bullish territory on yesterday’s close as sterling gains fractionally against the euro.
SHORT TERM TRADER: Long at 1.3040; stop below 1.2900. Target 1.3300.
POSITION TAKER: Square.
EURO/US DOLLAR
Slightly skittish with a shooting star candle just shy of trendline resistance. This has kept momentum bearish and brings into question the euro’s ability to hold above 1.1200.
SHORT TERM TRADER: Long at 1.1190; stop below 1.1140. Target 1.1400.
POSITION TAKER: Square.
GOLD
Back below the pivotal level at 1276 so that momentum is now neutral. A weekly close below 1270 would add to last month’s bearish pressure.
SHORT TERM TRADER: Short at 1283; stop above 1290. Next target 1260.
POSITION TAKER: Short at 1292; stop above 1290. Target 1185.
