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Equity indices are break-even this morning as markets prepare for the latest update from the Bank of England, before the Bank of Japan and US Federal Reserve follow up next week. Investors remain highly sensitive to any prospect of further tightening of monetary policy across the Atlantic. They would prefer for highly accomodative policy and exceptionally low rates to stick around forever, which is likely to be the case with stateside interest rates unlikely to get back anywhere near 2% before 2020.
Surprisingly good August UK Retail Sales mean the BoE can probably relax and monitor the impact of its existing stimulus and Brexit fallout for a few months. Those wanting more stimulus may thus be disappointed at midday by continued ‘serenity’ from Mark Carney. And while the BoJ could announce more help to rekindle growth and inflation next week investors are just as perturbed by what looks like waning potency of central bank stimulus and options running out. Oil is also proving a drag, offsetting positive moves by several base metals.
The UK 100 has broken above 6680 but remains dogged by a September downtrend. The DAX 30 has broken beyond 6-day falling highs but has yet to regain 10400. Dow Jones futures are holding shallow rising lows at 18000, but remain hindered by steeper falling highs. Gold is trading into the $1320 apex of a September narrowing pattern, awaiting the latest from the BoE.
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The UK 100 as broken above 6680 but remains dogged by a September downtrend. Can it clear 6700?
Watch levels: Bullish 6700, Bearish 6655
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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The DAX 30 has broken beyond 6-day falling highs. Rising lows since overnight but yet to regain 10400.
Watch levels: Bullish 10410, Bearish 10355
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Dow Jones futures are holding shallow rising lows at 18000, but remain hindered by steeper falling highs.
Watch levels: Bullish 18050, Bearish 18000
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Gold is trading into the $1320 apex of a September narrowing pattern, awaiting the next central bank update on monetary policy.
Watch levels: Bullish $1325, Bearish $1318
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
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