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The sway the US Federal Reserve has over global markets is as evident as ever with investors holding fire on taking on too much risk before knowing the latest views on US rate-hike timing from a key-note speech by Chair Janet Yellen this afternoon. It’s by no means a given that she’ll pepper her talk with hints about when another US rate rise is coming; that’s not how the game is played. However, an easing of USD strength suggests some receding of recent hawkish fears.
Many believe she is almost cornered into taking the opportunity to deliver a clear message before September’s FOMC policy update. Whether that message helps or hinders markets remains to be seen; does hawkishness equate to a signal of US recovery or another step towards the end of easy monetary policy? Markets can be fickle. The main event is at 3pm London time, almost certain to dictate market mood into the weekend and how we kick things off next week. Good luck.
The UK 100 has been sideways in a tight 6800-6820 range for the last 24 hours. Watch for the break. The DAX 30 is moving into the apex of a narrowing trend at 10500. Like its UK peer, watch for the break. Dow Jones futures are doing their best to reverse this week’s downtrend at 18470. Gold may have found support at $1320 thanks to an easing of USD strength, but has work to do before overcoming a 2-week downtrend. Remember the yellow metal is sensitive to both US interest rate expectations and the greenback.
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The UK 100 has been sideways in a tight 6800-6820 range for the last 24 hours. Watch for a break which could see the index revisit either the ceiling or floor of its 2-week falling channel.
Watch levels: Bullish 6835, Bearish 6795
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 is moving into the apex of a narrowing trend at 10500. Like its UK peer, watch for the break.
Watch levels: Bullish 10535, Bearish 10475
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 doing their best to reverse this week’s downtrend at 18470. Does it have the impetus to rebound. Will Yellen help or hinder.
Watch levels: Bullish 18500, Bearish 18440
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 may have found support at $1320 thanks to an easing of USD strength, but has work to do before overcoming a 2-week downtrend. Remember the yellow metal is sensitive to both US interest rate expectations and the greenback.
Watch levels: Bullish $1328 Bearish $1321
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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