The biggest news item from the weekend and yesterday is the Iranian deal. Leaving Israel on the bench by themselves the Iranians have brokered a deal to lift sanctions by limiting there uranium enrichment program. The immediate effect of this was to send oil sliding so the Loonie suffered the most. Apart from that the headlines have been subdued and about bloody time, I am sick and tired of Central Bankers meddling in the markets. They have stuffed the free market conditions that Ayn Rand postulated and that I admire so much.
Overnight the stock markets were flat and quiet as US housing saw a dip in sales, and the greenback slipped a little. Tonight there is more US housing stats including September’s. European stocks had a better day of it though as they crawl along just above stagnation levels. Meanwhile in commodities I think we are seeing the bottom of the 12 month slide in prices. A healthy bounce in all apart from oil.
DATA HIGHLIGHTS TODAY – UK Inflation Report. US Building Permits & Housing Starts (includes Sep data) & Consumer Confidence.
AUDUSD – Tested the long term fib and is holding above it now. Expect a bounce here and retest of 93cents.
EURUSD – Held nicely above resistance and will also look for this to rotate higher from here.
GBPUSD – Needs to set a trend but is looking slightly weaker in comparison to its neighbour or the antipodeans. Even against the crosses I expect a minor pull back. That is ok, it will give us opportunities to get into efficient long trades.
NZDUSD – Is making LH LL’s in each little cycle but I see it effectively range bound between 82 and 85 with the ema’s flat-lined.
USDCAD – With oil falling, although there is the commodity rally to offset this, the Loonie is weakening noticeably. Large resistance here for us and we are in extension zone with momentum starting to show signs of strain.
USDJPY – This too is showing signs of momentum exhaustion and perhaps I will get that pullback to 100 retest. If that holds then happy days let’s get busy shorting the ¥!
GOLD – A fabulous test of support and rejection of it. Very tempting to take this long due to this price action.
David Long / Proprietary Trading Manager