Last night the official Minutes of the US Federal Reserve monetary policy committee were published and while all agreed to the wording accompanying the 25-basis point cut – that it was a ‘recalibration of the stance of policy’ – some wanted an immediate 50 basis point cut while others thought no move at all was warranted. Head of the Fed Jerome Powell will deliver a key speech at Jackson Hole, Wyoming tomorrow, the annual pow-wow for central bankers.
This weekend’s G7 summit in Biarritz, France, will be the first since these annual meetings began in 1975 that the heads of state will not sign a joint communique. Yesterday President Macron told the press this, citing ‘’a very deep crisis of democracy’’, CNBC reports. Simultaneously on the Spanish-French border a ‘counter-G7’ summit has been organised which includes 50 NGOs, global activists and the yellow vest protestors who want to point out the ‘cynicism’ of global leaders and growing inequality.
DAX 30
Nudging into trend line resistance but retreating from 38 per cent Fibonacci retracement resistance; all a tad messy. Last night Chancellor Merkel gave PM Johnson 30 days to come up with something for Brexit. I have a feeling he’ll get short shrift at lunch today with President Macron.
SHORT TERM TRADER: Short at 11645; stop above 11865. Next target 11200.
POSITION TAKER: Short at 11835; stop well above 11865. First target 11000.
FTSE 100
The MACD is barely bearish as the index gets stuck just under 7200.
SHORT TERM TRADER: Small short at 7145; stop above 7300. Target 6850.
POSITION TAKER: Short at 7570; stop above 7325. Target 7000, maybe 6865.
S&P 500
Looking like it won’t be third time lucky and we won’t break above 2940.
SHORT: Small short at 2910; stop above 2970. Target 2820.
POSITION TAKER: Short at 2915; stop above 2970. First target 2820.
BRITISH POUND/US DOLLAR
Can’t believe that this currency pair has moved in less than a 2 cent range this month.
SHORT TERM TRADER: Small long at 1.2135; stop below 1.2000. Target 1.2400.
POSITION TAKER: Square.
EURO/US DOLLAR
Pretty pointless really.
SHORT TERM TRADER: Small long at 1.1165; stop below 1.1060. Target 1.1340.
POSITION TAKER: Square.
GOLD
Zero momentum as we appear to be working in an inverted V-shaped pattern.
SHORT TERM TRADER: Small short at 1500; stop above 1535. Target 1440.
POSITION TAKER: Square.
