One wonders whether the Fed knows what it’s doing or whether it’s simply too frightened of rocking the boat. At yesterday’s FOMC rate-setting meeting most Committee members votes to trim the Fed Funds target to 1.5 to 1.75 per cent as had been priced in by markets for weeks. Over those same weeks, emergency borrowing via the repo market at the New York Fed’s discount window has been going on, to the tune of hundreds of billions of dollars. In yesterday’s statement accompanying the rate decision they saw: ‘’the current stance of monetary policy as likely to remain appropriate’’.
At last, they’ve managed to flog the old horse. Reuters reports that today Fiat Chrysler announced it would join forces with Peugeot owner PSA through a 50:50 share deal, creating the world’s 4th largest automotive company – to be chaired by John Elkann, based in the Netherlands, Carlos Tavares as CEO.
DAX 30
Still overbought with a hanging man style doji yesterday, denoting instability.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
The last day in October and Brexit still hasn’t been done. Meanwhile FTSE hovers nervously as the commodity channel index is trying to turn down.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Almost overbought as we inch to a new record high while facing yet more important US economic data between now and Friday’s close.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
If only bullish momentum would pick up a bit along with price action.
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
Clawing back last week’s losses as EU members haggle over each country’s contributions to the next 7-year budget.
SHORT TERM TRADER: Small long at 1.1150; stop below 1.1050. First target 1.1250.
POSITION TAKER: Square.
GOLD
Bouncing yet again from horizontal support.
SHORT TERM TRADER: Short at 1520; stop above 1535. Target 1440.
POSITION TAKER: Short at 1507; stop above 1560. Target 1440.
