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Equity markets are flat to positive as investors cautiously wait for a key address to Congress from Fed Chair Janet Yellen this afternoon, while mixed bag of macro data for both the UK and the Eurozone has resulted in a developing tug of war in FX markets. Sterling was the first to fall after UK CPI data came in softer than expected, boosting the majority foreign earning UK 100 , before a marginally weaker flash Eurozone GDP reading saw the Pound halt its sell off, capping the UK Index rally just shy of fresh one month highs of 7300. All eyes will be on whether Yellen rules out a March rate hike or reiterates the Fed’s official forecast of 3 rate hikes in 2017, with significant ramifications for the US dollar.
Early UK 100 weakness could be attributed to an underperforming Dollar weighing on Pharmaceutical names (AZN, GSK, SHP), profit taking after yesterday’s outperformance hits Miners (AAL, RIO) while Rolls-Royce remains the notable laggard after reporting the biggest loss in the company’s history. Offsetting losses at the top of the pile are Financials (BARC, HSBC, LLOY, HSBA) following outperformance from peers in the US overnight and Oilers (BP, RDSb) after Crude Oil pares some of yesterday’s losses. Note M&A speculation between the US’s General Motors and France’s PSA Group has seen Carmakers spike on the DAX.
The UK 100 has recovered from an early test of 7260 support to once again march towards 7300 as Sterling underperforms in FX space. Could Yellen invoke a stronger USD this afternoon for a return to all-time highs? The DAX 30 is virtually flat, having rallied from early lows at 11760 rising lows support. Dow Jones Futures are pointing towards a flat open on Wall Street having fallen from yesterday’s intra-day highs of 20,430, as investors remain cautious ahead of Yellen’s testimony at 3pm. Gold is again struggling to overcome falling highs resistance from the end of last week as the US equities rally continues.
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The UK 100 has recovered from an early test of 7260 support to once again march towards 7300 as Sterling underperforms in FX space. Could Yellen invoke a stronger USD this afternoon for a return to all-time highs?
Watch levels: Bullish 7295, Bearish 7265
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 virtually flat, having rallied from early lows at 11760 rising lows support.
Watch levels: Bullish 11800, Bearish 11725
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 pointing towards a flat open on Wall Street having fallen from yesterday’s intra-day highs of 20,430, as investors remain cautious ahead of Yellen’s testimony at 3pm.
Watch levels: Bullish 20,430, Bearish 20,390
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 again struggling to overcome falling highs resistance from the end of last week as the US equities rally continues.
Watch levels: Bullish $1231, Bearish $1225
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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