October PMI data kicked off in Australia early this morning where, as calculated by the Commonwealth Bank, services dipped to 50.8, the composite to 50.7 and manufacturing to barely visible growth at 50.1. In Tokyo, the manufacturing sector dipped to 48.5 from 48.9 in September, both data points denoting contraction, and the largest drop in 3 years. Leading and coincident economic indices also published today both fell in the month to August. Later today we’ll get comparable figures for France, Germany (where manufacturing and the composite are already contracting) and the Eurozone.
Today will be the last ECB rate-setting meeting with Mario Draghi at the helm. The man who did everything needed to save the euro will probably be breathing a sigh of relief, though his recent decision to do even more quantative easing is ruffling feathers at the bank. Also, worth mentioning that rumour has it that Germany’s new candidate for the top-table at the ECB (Sabine Lautenschlager resigned over more QE) is going to be a woman – because they don’t want Christine Lagarde to be the only female on the board. Talk about gender equality.
DAX 30
Overbought as we inch to a new high for this month and the highest level since June 2018.
SHORT TERM TRADER: Stopped out of short position at a loss last night.
POSITION TAKER: Square.
FTSE 100
Reaching 38 per cent Fibonacci retracement resistance for the first time since October’s low; slow work.
SHORT TERM TRADER: Small short at 7140; stop above 7280. Target 7025.
POSITION TAKER: Square.
S&P 500
The commodity channel index is still bumping along its upper edge.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Yesterday’s little hammer underlines the decent bullish momentum to this currency pair. Meanwhile PM Johnson scrawled a note to the head of the liaison select Committee that he couldn’t make today’s hearing because he had Brexit on his hands; it was signed, Boris.
SHORT TERM TRADER: Long at 1.2950; stop below 1.2760. Target 1.3150.
POSITION TAKER: Long at 1.2950; stop below 1.2600. Target 1.3350.
EURO/US DOLLAR
Holding first Fibonacci retracement support, thereby maintaining bullish momentum.
SHORT TERM TRADER: Small long at 1.1150; stop below 1.0990. First target 1.1250.
POSITION TAKER: Square.
GOLD
Is it time to ask who is buying at 1488?
SHORT TERM TRADER: Short at 1520; stop above 1535. Target 1440.
POSITION TAKER: Short at 1507; stop above 1560. Target 1440.
