Market Wrap
Germany’s Flash PMI for Manufacturing and Services got the day started. This flash reading is a preliminary reading and a first indication of how the sectors are likely to perform in the month ahead. All the data needs to be accumulated before the final reading, but by then, markets have generally priced in the data. European flash PMI’s were mixed, while UK flash PMI’s came in worse than expected.
At the start of the US session, the US Flash PMI for Manufacturing and Services also came in a lot worse than expected. This doesn’t bode well for the coming month as we’re expecting the Fed to start tightening monetary policy and remove their accommodative policies. China is also reducing benchmark rates signalling they need to support their economy if the US continues along this hawkish path and even more so if the Fed goes in aggressively. We may not have had a taper tantrum but we’re getting a policy shift tantrum as once again the global stock markets are dropping.
The forex heatmap shows that the commodity pairs are down today against the euro, US dollar and yen. The Swiss franc is also strong against the likes of the Aussie but is depreciating against the US dollar and yen.
If the US dollar continues to go higher and gets through the balance area between $95.50 and $97.00 the AUDUSD is going to test the swing low from early December 2021.
See real-time quotes provided by our partner.
The daily momentum is to the downside and price action has broken through as a significant swing low and ascending channel. Momentum tends to lead price, so bears are in control and likely to keep adding to their short position if the Fed comes across as very hawkish.
At the beginning of the year over 70% of the 500 companies within the S&P500 were trading above their daily 200 moving average. Today that number is reduced to 40% and is likely to keep going lower. This is adding to the bearish momentum as CTA’s and trend following algo’s will be looking to short more as the fundamentals stack up against these companies.
See real-time quotes provided by our partner.
The UK FTSE100 is still above the daily 200 EMA but is rapidly losing ground. This week is a pivotal week for PM Johnson who is coming under fire and being ousted out of his position if a report into the lockdown parties he attended comes out as damning as is being reported. One thing the markets don’t like is uncertainty and the Fed, UK government, Russia/Ukraine/NATO situations are making it hard to be bullish.
See real-time quotes provided by our partner.
The rising dollar has pushed on the energy markets with Brent coming down below the pivotal $86 per barrel.
A comprehensive website for traders, both experienced and new! Checkout our content and learn how to invest and speculate in the markets using margin traded products. Our team of educators has extensive experience and is here to help. Enjoy!
© 2020 YouTrading UK - Leaders in Trader Training.
Cookie | Duration | Description |
---|---|---|
__cfduid | 1 month | The cookie is used by cdn services like CloudFare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. It does not correspond to any user ID in the web application and does not store any personally identifiable information. |
_wpfuuid | 11 years | This cookie is used by the WPForms WordPress plugin. The cookie is used to allows the paid version of the plugin to connect entries by the same user and is used for some additional features like the Form Abandonment addon. |
cf_use_ob | This cookie is set by the provider Cloudflare content delivery network. This cookie is used for determining whether it should continue serving "Always Online" until the cookie expires. | |
cookielawinfo-checbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
YSC | session | This cookies is set by Youtube and is used to track the views of embedded videos. |
Cookie | Duration | Description |
---|---|---|
_ga | 2 years | This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors. |
_gid | 1 day | This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. |
Cookie | Duration | Description |
---|---|---|
_fbp | 3 months | This cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website. |
fr | 3 months | The cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin. |
IDE | 1 year 24 days | Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile. |
test_cookie | 15 minutes | This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies. |
VISITOR_INFO1_LIVE | 5 months 27 days | This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website. |
Cookie | Duration | Description |
---|---|---|
_gat_UA-42160853-2 | 1 minute | No description |
cf_ob_info | No description | |
CONSENT | 16 years 8 months 3 days 6 hours 2 minutes | No description |