Archives of “October 28, 2019” day

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The USDJPY tests its 200 day MA

  
Analysis, Forex

USDJPY 200 day MA at 109.033

The USDJPY has moved to another intraday high and in the process is testing its 200 day MA at 109.033. The high price (bid side) has reached 109.035.
USDJPY 200 day MA at 109.033
Can the buyers keep the upside momentum going?
Close risk for the buyers is the old high for the day/month at 108.933 area (maybe down to 108.893).  Stay above keeps the bullls more in control.
Can sellers lean against the 200 day MA?
Yes.
These key technical levels are where the buyers and sellers show their hand.  If buyers turn to sellers and bears are interested, they will lean against the technical level and overwhelm the bueyrs. Those sellers will have stops on a momentum move above the 200 day MA.
Buyers, however, will be lookiing to help shove the market through that key level and trigger stops/more buying on the break above.   If done. the 61.8% of the 2019 trading range at 109.352 will be the next major target.
Key target and bias levels for the buyers and the sellers.
The USDJPY on the daily chart

European shares start the week with gains

  
Analysis, Global Indices

Major indices closed the day with modest gains

The major European indices are starting the week with modest gains. The provisional closes are showing:
  • German DAX, +0.49%
  • France’s CAC, +0.3%
  • UK’s FTSE 100, +0.2%
  • Spain’s Ibex, unchanged
  • Italy’s FTSE MIB, +0.4%
in the European debt market, yields have climbed higher.   The France moved closer to the 0.0% level, trading at -0.027%.  The yield has not been above 0.0% since July 16.
The European yields are higher

Mnuchin: US will ramp up more on Iran sanctions

  
  Analysis

Comments by US Treasury secretary, Steven Mnuchin

US Iran
  • We have executed on a maximum pressure campaign for sanctions
  • We will continue to ramp up, more, more, more…
He’s commenting after a meeting with Israel, who have been urging the US to increase pressure on Iran. While things appear to be going smoothly with China for now, let’s not forget that there are other geopolitical tensions still at play globally.

European mid-morning: Currencies remain little changed but big week lies ahead

  
  Analysis
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Major currencies are <0.1% changed against the dollar so far today

EOD 28-10

The pound is arguably the only active mover as cable rose to a high of 1.2859 earlier in the session before settling back to near flat levels currently around 1.2820-30 levels.
Other major currencies are holding in narrow ranges against the dollar with little conviction to break stride so far today.
The risk mood is a bit mixed overall with European equities looking indecisive but bond yields are marked higher amid the fact that a Brexit extension was granted, with the move higher coming after France moved on their stance from last week.
Despite the slower start to currencies this week, fret not because it is going to be a crucial week ahead and here are some of the highlights to look forward to:
Monday, 28 October (still to come)
– UK parliamentary vote on Johnson’s election motion
Wednesday, 30 October
– Australia Q3 CPI data
– France Q3 preliminary GDP data
– US October ADP employment change
– US Q3 advanced GDP data
– Bank of Canada October monetary policy meeting
– FOMC October monetary policy meeting
Thursday, 31 October
– New Zealand October ANZ business confidence
– China October manufacturing, non-manufacturing PMI
– BOJ October monetary policy meeting
– Eurozone October preliminary CPI data
– Eurozone Q3 preliminary GDP data
– Canada August monthly GDP data
– US September PCE deflator data
Friday, 1 November
– China October Caixin manufacturing PMI
– US October non-farm payrolls, labour market report

Nikkei 225 closes higher by 0.30% at 22,867.27

  
Analysis, Global Indices

The Nikkei is closing in on the 23,000 mark

The Nikkei is closing in on the 23,000 mark

Japanese stocks pick up where they left off last week as they push higher today. The Nikkei continues to trade at over one-year highs and is now just shy of the 23,000 level.

The more buoyant mood in Wall St at the end of last week is helping with that as sentiment around the region is also buoyed. The Hang Seng is up by 1.0% while the Shanghai Composite is up by 0.7% at the moment.
That said, the overall risk mood in markets is more composed with US and European futures only pointing to mild gains for the time being. USD/JPY rests at 108.72 as a result, trading within a 12 pips range to kick start the week.

Economic data coming up in the European session

  
  Analysis

A light data docket to start the week as Brexit remains in focus

Brexit
Happy Monday, everyone! Hope you all had a great weekend and are doing well today.
First thing’s first, don’t forget daylight savings has ended in most parts of Europe (clock goes back an hour) so hopefully you don’t mess up your schedule because of that.
Markets are keeping more steady once again as there will be plenty to look forward to in the week with the usual Brexit and US-China trade rhetoric at play, alongside key central bank meetings amid month-end flows.
As such, expect key headlines and the ebb and flow to dominate trading sentiment as there isn’t much on the economic calendar in the session ahead.
0700 GMT – Germany September import price index
Prior release can be found here. A proxy and lagging indicator of inflationary pressures. Not a major release by any means.
0900 GMT – Eurozone September M3 money supply
Prior release can be found here. A look at money supply/credit conditions in the euro area region. A minor data point at the moment.
0900 GMT – SNB total sight deposits w.e. 25 October
Your weekly check of the deposits kept at the SNB by Swiss banks. This data is a proxy for FX interventions.
1100 GMT – UK October CBI retailing reported sales
The readings here are an indicator of short-term trends in the retail and wholesale sector of the UK economy. A minor data point as Brexit remains the key focus.
That’s all for the session ahead. I wish you all the best of days to come and have a wonderful week ahead!

Argentina to limit USD purchases for individuals to $200 a month (down from $10,000)

  
Analysis, Economy
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Argentina’s central bank has adjusted its currency controls to limit dollar purchases for individuals

  •  to $200 a month, down from $10,000
The President of the central bank to speak Monday
  • at 8:30 am local time
Headlines via Reuter.
This is one way to attempt to control capital flight. The controls come as Argentina elects Alberto Fernandez its new president. Voters tired of economic austeity.

The Wall Street Journal on China’s financial bubble in high-end sneakers.

  
  Analysis
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The Journal with a report “Chinese sneaker mania has gone into hyperdrive”

  • Speculators are flooding trading platforms and treating sneakers much like financial derivatives, including buying and selling shoe fractions
  • It’s all getting a bit much for the People’s Bank of China, whose Shanghai branch recently warned financial agencies in the city of sneaker-frenzy risk, including “mass disturbances,”
  • On trading platform Nice, a pair of Travis Scott Nike Air Force 1s is set to go on sale on Nov. 4 for around $170. Two buyers have already bought rights, similar to a call option, to buy the shoes for $1,553 and $2,667, respectively, and more than 2,000 users have said they are generally interested. More than 800 buyers are offering between $295 and $700 for a pair of Air Jordans set for release on Nov. 5 at $183.
Outstanding!

Green cardigan USD334K. Pigeon EUR 1.25m. Tiny painting EUR24m. How much for a tulip?

  
  Analysis

Check these out:

  • Kurt Cobain’s green cardigan sold for  $334,000 at auction over the weekend
  • Armando, a racing pigeon, sold in March for 1.25 million EUR
  • A tiny painting, 20 by 26 cm, by 13th century Italian master Cimabue that was found in the kitchen of an elderly French woman was sold for 24 million euros (I think that was in Sep)
Yowza.
The S&P500 is on track to hit a record high this week in case you are wondering
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