Stocks ending lower in US trading session on Friday as oil and gold sold off heavily leaving oil back under $70 per barrel and gold coming off the highs of $1012.30 (now at $997.50) due to better than expected consumer confidence level as produced from the University of Michigan. The Yen, as stated in previous reports, is certainly the currency of choice acting as a 'safe haven'. Stocks in asia fell heavily overnight as the fears that the rally in equities over the last 6 months have outpaced the prospects for earnings growth. The likelihood of an Autumn sell off from global equities now becoming far more likely given that the MSCI world stock index fell. European stocks falling in line with the US and Asia, selling across the board during this mornings session as UK financials report further losses to the tume of 130bn pounds in addition to the 110 bn lost since the beginning of the 'credit crisis' in 2007.
Cable trading for late european and US session looks to continue its sell off at US equity futures are looking to open lower at time of writing. Coming off the highs of 1.6690/95, now trading at 1.6530/35 (50% fib ret level for the last weeks trading), which is acting as a support barrier for this morning. Should commodities along with stocks continue to gain momentum, expect a move towards 1.65 ahead of the 61.8% ret level at 1.6480. Resistance back up at the 38.2% level at 1.6580 ahead of 1.66 figure. The pound is also continuing to be battered against the euro as the EU stated that the economy has returned to growth in the current quarter.
Euro trading for today coming off the highs of 1.4605/10, now at 1.4550 at time of writing. As the euro is still remaining strong, certainly against the pound and level against the dollar, a move back towards 1.4560/70 as the yen retraces back of its highs overnight to 132.40/45. The key resistance for euro yen is 132.50 (38.2% fib level for the weeks trading) which if breaks and holds will see a return to 132.90. Should the stocks and commodities continue to fall, expect a retracement from the 38.2% level for euroyen cross over to 1.4515 for eurodollar, which if breaks there will see a return towards 1.4520 ahead of 1.4480.
Yen trading lower against the euro through the asian session and europe as chinese stocks fall overnight. Should US equities continue to fall after the open, expect the Yen to gain once again to head towards the the highs against the dollar at 90.70 ahead of 90.50. Resistance at 91.05 ahead of 91.50 (38.2% fib level for the weeks trading).