London Forex Report: More Mueller Subpoena’s

London Forex Report: More Mueller Subpoena’s

London Forex Report: Industrials led Wall Street higher overnight, with Boeing and Caterpillar climbing higher. Market-watchers were faced with more potential regulation changes, with the US Senate polling a 67 to 31 vote to pass a bipartisan bill to change the 2010 Dodd-Frank law. The bill, slated to benefit many community banks and regional lenders, would still need to be considered by the House lawmakers first before it heads for the President’s endorsement. However, Chairman of the House Financial Services Committee Jeb Hensarling injected new uncertainty to the bill last night as he insisted to add about 30 additional measures to the bill passed by the Senate. Nevertheless, the loss of special Congress election in Pennsylvania may be the catalyst for the House to compromise, eventually passing the banking bill. Elsewhere, note that the special counsel, Robert Mueller, has reportedly subpoenaed the Trump Organisation in an effort to broaden his investigation. also noteworthy early morning headlines (unconfirmed) on the firing of National Security Advisor McMaster by Trump.

NORTH AMERICA Initial jobless claims fell to 226k in early March (24 Feb: 231k) which is in line with expectations of a tightening labour market. Overall, the data coincides with readings of non-farm payroll, unemployment rate and wage growth last week, signifying that a stable labour market will continue to drive growth in the US economy. The manufacturing sectors are showing positive signs in the East Coast. The New York Empire Manufacturing jumped to 22.5 in March (Feb: 13.1) beating expectations, indicating that manufacturing conditions have improved substantially in the area. The Philadelphia Fed Business Outlook on the other hand eased to register a reading of 22.3 in March (Feb: 25.8) due to a drop 6- month outlook for capex as well as in both prices paid and received. Generally, both surveys shows that the manufacturing industry is holding up decently.

EUROPE after the UK decided to expel 23 Russian diplomats — the biggest expulsion since the Cold War. On Thursday, news emerged out of Russia that in response to the UK’s move, it would soon expel British diplomats. Also on Thursday, leading figures from France, Germany, the US and the UK went on to issue a joint statement which condemned the chemical attack on a Russian former double agent in England.

ASIA China cut its US Treasury holdings in January to US$1.168 trillion from US$1.185 trillion in 2017, lowest since July 2017. As trade tensions between US and China heightened, the risk for China to retaliate via the reduction of US Treasury holdings cannot be ruled out though the chance is low.

Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish

Technical: 1-3 Day View – Offers ahead of 1.24 contain for now, a close above here opens 1.2630 again, range is contracting a close below 1.23 opens 1.2140.

1-3 Week View – As 1.2130 now acts as support expect a test of 1.2635 as the next upside objective. Weekly close below 1.19 neutralises bullish objectives opening a test of 1.14.
Retail Sentiment: Neutral
Trading Take-away: Neutral

Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bullish

Technical: 1-3 Day View – The daily close over 1.3925 opens 1.4093, however a close today below 1.3920 suggests a false break and another retest of 1.37 bids

1-3 Week View – As 1.3650 supports 1.45 becomes the next upside objective, only a close back below 1.34 would jeopardise the bullish advance.
Retail Sentiment: Bearish
Trading Take-away: Long

Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: 1-3 Day View – As 108.44 acts as resistance 103.22 is the next downside objective, return to trend confirmed on a daily close below 106.50, near term resistance is sited at 107, with near term support sited at 106.04

1-3 Week View – The close below 108 negates the broader bullish theme and opens the psychological 100 magnet as the next downside objective, only a close above 108.50 stabilises the pair, opening 112.50
Retail Sentiment: Bullish
Trading Take-away: Short

Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: 1-3 Day View – Breach of 131 sets a top to target 128.50 as 132 caps corrections. A close over 133 stabilises the pair opening a retest of 135

1-3 Week View – The closing breach of 131 concerns the bullish consolidation bias opening a test of 128.50 while this area supports there is a window to retest and breach cycle highs above 137
Retail Sentiment: Bullish
Trading Take-away: Short

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