by Chris Becker
Another solid session in Asia today, although Chinese stocks are sliding into their close with the Shanghai Composite down 0.4% but still respecting its once resistance, now support at 3000 points. Helping the Nikkei put on nearly 1% the Yen is getting sold off smartly against USD:
This is a lovely technical breakout above the 105 handle and should have legs going into the London and NY sessions tonight. Not as much can be said for the Aussie dollar, which reacted positively to the jobs report today, but as you can see on the half hour chart below, it was unable to climb above yesterday’s high although its having another go coming into London:
Meanwhile, gold is falling off its perch again on some Chinese selling, breaking very short term support after lunch to currently be at $1332USD per ounce. Let’s watch the London fix, and indeed, gold priced in other currencies like Sterling and Aussie:
Futures for stock markets in Europe and the US are up sharply building on the gains here in Asia, but the BOE meets tonight so it could provide a roadblock to further moves higher if the stimulus isn’t forthcoming:
The economic calendar heats up tonight with the Bank of England monthly interest rate meeting, an interesting timing given the new PM and finance minister amid the uncertainty (rising certainty?) of Brexit. In the US we get initial jobless claims and not much else.