The Financial Times reports that today credit rating agency Moody’s has cut the rating of Hong Kong from Aa2 to Aa3 after months of street protests over the island’s independence. ‘’The response by Hong Kong’s government to both political demands by parts of the population and broader concerns about living standards, housing costs and equality of economic opportunities has been notably slow, tentative and inconclusive.’’ Yesterday China’s National Health Commission confirmed the first case of human-to-human coronavirus, and that staff at Wuhan’s main hospital had caught the virus.
President Trump’s impeachment hearing in the US Senate starts today while he’s at the WEF at Davos facing climate activist Greta Thunberg. Senate Majority Leader Mitch McConnell has given impeachment managers just two days to prosecute their case, present their arguments and respond to senators’ questions. Obviously, the Republicans want a speedy acquittal.
DAX 30
Still working inside a potential broadening top formation and now, once again, the commodity channel index looks set to turn down.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Retreating fractionally from horizontal resistance at 7690 where it struggled late last year and in August 2018.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Overbought and US stock markets were closed yesterday.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
The daily chart is a fractal of the weekly one, reflecting short and medium-term reality. Regulatory consultancy Bovill reports that over 1000 EU financial firms are currently planning to open offices in the UK to service clients post-Brexit. By October last year 1444 had already applied to the FCA for temporary permissions to operate in Britain, reports City AM.
SHORT TERM TRADER: Small long at 1.3075; stop below 1.2900. Target 1.3500.
POSITION TAKER: Square.
EURO/US DOLLAR
The euro seemingly oblivious to what might be an important ECB meeting this Thursday.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Slightly ominous as momentum turns bearish despite this morning’s rally.
SHORT TERM TRADER: Small long at 1544; stop below 1530. Target 1580 (but might square up before that due to divergence).
POSITION TAKER: Square.
