Daily Briefing
Currencies
- EUR/USD: After strong USD CPI figures yesterday the EURO crashed through its previous Support level of 1.270. It’s now trading at 1.26322 and is about to test the Support level of 1.262 with the weak French Flash Manufacturing PMI just released. Expect resilience at this level but data from the U.S Unemployment Claims could tip the balance at 12:30 GMT. Resistance is at 1.267 and deeper support at 1.26 and even 1.25 in extension.
- USD/JPY: The Pair showed resilience once again yesterday and traded back up to resistance levels of 107.4, as seen the day before. It is currently trading slightly below this level. Look for the pair to trade between this level and the key support of 106.75. Possible breakouts targets at 107.7 and 108.15 in extension.
- GBP/USD: The Pair is under pressure and is currently trading down towards the key Support 1.600. Resistance is at 1.613 but if we see a breakout here, look for further Support 1.594.
Indices
- Asian stock Markets are trading in negative territory on the back of declines in Wall-Street last night. Traders were not reassured by the surprise rise in China’s manufacturing data (HSBC’s PMI) to 50.4 points in October, which was above market expectations for a reading of 50.2 points. Nikkei 225 and CHINA A50 futures are sliding as much as 0.7% on the session.
- European index futures are continuing the declines seen in Wall-Street and Asia. French Flash Manufacturing PMI came in at 47.3 below estimation of 48.6. CAC 40 and DAX futures are dropping on the back of PMI data and ahead of German figure at 07:30 GMT.
- US Indices futures closed lower on Wednesday, led by the energy sector stocks, after Crude Oil price fell to its lowest level in 28 months.Dow 30 lost 0.9%, the NASDAQ Composite fell 0.8% and the S&P 500 shed 0.7% of its value yesterday. US futures are unchanged on the session.
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TOP News
- Traders continue to focus on the third quarter earnings season. Coca-Cola Enterprises Inc (NYSE:CCE),Amazon.com Inc (NASDAQ:AMZN), General Motors Company (NYSE:GM), Microsoft Corporation (NASDAQ:MSFT) and Tesco Corporation (NASDAQ:TESO) are among companies reporting today.
- China HSBC Flash Manufacturing PMI was 50.4 in October.
- French Flash Manufacturing PMI fell to 47.3 in October.
Things To Remember
- If you have a plan, stick to it. Place Limits / Take Profits where you intend to exit the Market.
Market Sentiment
- Gold: Trading slightly up on Thursday morning due to increasing demand in India. The metal was trading at a high of 1,244.72 after a 0.6% drop to 1,240.23 the day before. The biggest drop since 3rd Oct. Support currently holds at the 1,240 level with the next step at 1234.60.
- Crude Oil: Price plummeted close to a 2 year low at 80.02 after increasing Crude Oil Inventories data. Crude Oil stockpiles increase was at 7.1 million barrels compared to a forecast of 2.8 million. Producers are cutting export prices to stimulate demand with the U.S and Russia being in the production front line. Support holds at 79.90.
- VIX: The Volatility index rise by 11.13% on Wednesday.
NEWS – Thursday 23/10/2104
07:00 GMT EUR - French Flash Manufacturing PMI
07:30 GMT EUR - German Flash Manufacturing PMI
08:30 GMT GBP – Retail Sales m/m
12:30 GMT USD - Unemployment Claims
14:30 GMT USD – Natural Gas Storage
21:45 GMT NZD – Trade Balance
Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
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