After a very nervous start to Friday on the back of the downgrade for Spain, risk appetite returned on the back of a successful Italian Bond Auction with Equities and Commodities both rallying along with a rise in Global Bond yields. US GDP came in at +2.2% versus 2.5% expected and this added to the woes for the US Dollar. Last week was a very quiet week for currencies but this week volume should return as we have lots of Economic news. We have an ECB meeting and an important Spanish Auction on Thursday. We have Chinese PMI on Tuesday morning and we also have Manufacturing from the UK and the US. Today we have Chicago PMI.
NOTE: All comments below refer to the June Futures Contract in each instrument
S&P 500
The S&P rallied after a nervous opening and I was able to take profit at 1400 – I am now flat. Technically the market had a very good finish to the week. I don’t want to short this market yet so I will look to reset longs on any pullback to 1391/1395 with a 1389 stop. I still believe the market will have one more shot at 1420 before the Bears return.
Euro/USD
After the weak US GDP numbers I was able to take profit on my long position at 1.3260 and I am now flat. Despite all the bad news out of Europe, the Euro refuses to go down and I will use any sell off to reset my long position. I will look to buy from 1.3190/1.3220 with a 1.3150 stop as I look for a test of the important 1.3300 level.
GBP/USD (Cable)
The Spanish downgrade allowed me to close my short position at 1.6160 and I am now flat. The Cable then rose a 100 points. I want to sell from 1.6320/1.6350 with a 1.6360 stop looking for a retest of the now important 1.6200/1.6250 level. If I get short I will look to cover in this area.
USD/JPY
I have not traded this market since I went flat 2 weeks ago at 82.20. I want to buy from 79.90/80.20 with a 79.70 stop as I look for a move back to 8100 where I will sell if I am taken long below first.
Bund
This market is very frustrating at the moment as I was taken out of my short position again on Friday. I am now flat and I will leave the Bund alone until more favourable trading conditions return.
Recent Comments