A look at the day ahead in U.S. and global markets from Mike Dolan
Markets have recovered their poise this week on a potent mix of U.S. ‘soft landing’ hopes and interest rate cut speculation and now turn their attention back to U.S. politics ahead of Tuesday’s big TV debate.
EURUSD DAILY CHART
No change from what was posted in our Weekly FX Chart Outlook other than while within 1.10-1.11, 1.1050 will set its trading bias.
From the Weekly FX Chart Outlook
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Last week I said the EURUSD range was 1.10-1.12 with 1.11 setting the trading bias.
Well, that didn’t change after a whipsaw end to the week following the US jobs report
Looking at this daily chart, it would take a break of 1.0949 to fully negate the upside risk.
Highlight: ECB decision on Thursday
US500 DAILY CHART – Retracement
As markets seem on hold waiting for tonight’s US presidential debate, equities remain a focus as a measure of the risk on/risk off mood.
Looking at this chart, despite the impressive rebound yesterday, moves to the upside are to be treated as a retracement unless 5522 is taken out.
Figuring out what is going on behind the scenes can be quite a test of will and dedication. This is one reason I like Bobby’s style who is quietly sticking with technical and really on top of Sterling. I spend hours analyzing money flow and listening to people. If you are novice or intermediate it is best you lean more toward technical attributes and do the education part over time. Right now UsdJpy has flows eyeballing 143.45 again before running into dominant sell pressure.
There is risk flow going into Japan, think Nippon Steel. Economy is not that bad.
The flows in Yen are moving in 2-3 day swaths, with the weaker side being long UsdJpy which gets nailed in stiff fasihion every time they bring it up. Long side was better before recently, it will take quite a bit to change the sell cycle overall. We could find a stalemate and more leveled off condition in a week or so.
Jay I don’t think, other than China, the rest of the major sovereigns are as unstable as people are thinking. Japan will move again soon, US inevitably, Europe is a maybe. There is still a chase for risk, the sky has not fallen, to conditions are softening but not dramatically. So in totality the swatch of varied markets is reacting more in USD as the driver but with spots of the others making adjustments. Bottom line is Usd is still selling and I don’t think it should be a surprise if Euro closes the week over Dollar.
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