Data released this morning showed that consumer price inflation rose 0.1 per cent in the month of April, taking the annualised reading to 2.5 per cent from 2.3 per cent in March, and almost the highest reading of the last two years or so. The sort of reading many a central banker, whose inflation targeting mandates 2 per cent over the medium term, would dream of and which would be ‘a good thing’. The sad reality, in China the increase was fuelled by food prices which rose at 6.1 per cent annualised, from 4.1 per cent in the year to March, pork prices up 1.6 per cent in April and 14.4 per cent over the year because of African swine fever. This hits the poorest hardest.
This morning a listener to an Australian radio station faxed an enlarged photo and phoned in to point out a spelling mistake on the A$50 note, the most widely used in the country. Issued by the Reserve Bank of Australia in October with new safety features, not once but three times is the word ‘responsibility’ spelled ‘responsibilty’. As I say, you cannot get the staff; they have admitted responsibility.
DAX 30
Momentum this week has just edged into negative territory as we edge towards 11800, the neckline of the massive head and shoulders that’s been building since early 2017.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Bearish momentum has accelerated this week and is now at its strongest this year. What had been trend line support is now acting as resistance and we’ve edged below first Fibonacci retracement support.
SHORT TERM TRADER: Short at 7245; stop above 7460. Target 7020.
POSITION TAKER: Square.
S&P 500
Bearish momentum has increased so far this week, and this morning’s reading is the lowest we’ve seen so far this year.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Drifting all the way back down to horizontal support.
SHORT TERM TRADER: Long at 1.3040; stop below 1.2990. Target 1.3300.
POSITION TAKER: Square.
EURO/US DOLLAR
Just so little momentum and the rift between Italy’s two deputy PMs got bigger and uglier this week, forcing PM Giuseppe Conte to intervene yesterday.
SHORT TERM TRADER: Long at 1.1190; stop below 1.1140. Target 1.1400.
POSITION TAKER: Square.
GOLD
Maybe yesterday’s shooting star candle marks a new interim top. Though it didn’t trade above 100, the commodity channel index might turn down today.
SHORT TERM TRADER: Short at 1283; stop above 1290. Next target 1260.
POSITION TAKER: Short at 1292; stop above 1290. Target 1185.
