Published this morning, and way below Bloomberg’s survey forecasts of an annualised 5.2 per cent growth, the August reading came in at 4.4 per cent, down from July’s 4.8 per cent. Rarely in its history going back to 1990 have we seen readings below 5 per cent, bar a few brief dips in Januarys and Februarys in the early 2000s. Separately, the Financial Times reports today that for the first-time Chinese corporations have become net sellers, to the tune of $40 billion, of global assets; they had been on a serious acquisition trail over the last decade or so.
Act first, think it through later, has been the classic knee-jerk reaction – and media coverage – to the drone strikes on Saudi Arabian oil installations. Needless to say, President Trump had something to say on the subject: ‘’There is reason to believe that we know the culprit, are locked and loaded depending on verification.’’
DAX 30
The rally of the last 3 weeks might be fizzling out just under this year’s high and clearly below 2018’s record high.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
The MACD is still clearly bearish despite the small rally of the last 3 weeks.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Despite flirting with the psychological 3000 level, the index isn’t overbought. This week it’ll focus on the much-hyped Fed FOMC interest rate decision on Wednesday.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
The MACD is no longer bearish as PM Johnson travels for his first meeting with EU Commission President Jean-Paul Juncker. For lunch, they will have snails, salmon and cheese; I’m more interested in what the drinks on offer will look like. Today EUR/GBP trades under 89 pence for the first time since June. Meanwhile, cable has retraced a Fibonacci 61 per cent of the losses since late June.
SHORT TERM TRADER: Small long at 1.2345; stop below 1.2225. Target 1.2550.
POSITION TAKER: New long at 1.2500; stop below 1.2300. Target 1.2750.
EURO/US DOLLAR
MACD negligible, and probably irrelevant, as it has been on year. A second consecutive weekly hammer-type candle is proof that the euro is trying to find an interim base.
SHORT TERM TRADER: Long at 1.1105; stop below 1.0900. Target 1.1350.
POSITION TAKER: Square.
GOLD
Still overbought despite retreating a little for 3 consecutive weeks – testament to just how ridiculously overbought it had become.
SHORT TERM TRADER: Short at 1520; stop above 1535. Target 1440.
POSITION TAKER: Short at 1507; stop above 1560. Target 1440.
