by Chris Becker
A shaky start to the week with currencies and S&P futures gapping down on the turmoil over the weekend by Trump’s scatterbrain approach to immigration (note that actual terrorist breeding grounds and where his personal business interests are not affected – this will be a dominant theme in the years ahead, so plan accordingly). The USD fluttered on the open this morning, with traders still unable to quantify the risk into their algos. Today’s session in Asia has been muted, namely because Chinese stock markets, including the Shanghai Composite and Hang Seng Index are closed until Friday due to the Chinese New Year.
Japanese stocks are selling off lightly due to a gap down in the USDJPY pair as Yen rallied due to safe haven status. The Nikkei closed down 0.6% erasing half of last week’s gains, mainly due to banks selling off. The hourly chart for USDJPY shows that rising support has been crushed on the gap, selling off to 114.50 with trader’s very hesistant before the BOJ meeting tomorrow:
S&P Futures gapped down as well as domestic business weigh up the chaos over the weekend to their employees, suppliers and customers. The four hourly chart shows a decent fall is possible tonight:
The ASX200 is starting its earnings season at the best time! The market gapped down over 1% and didn’t recover at all during the day, closing down 0.9% to 5661 points, with the selloff being broad, although tech stocks were hit especially. There’s going to be some interesting moves in the weeks ahead due to earnings, so I’ll keep a closer eye on specific issues here.
The Aussie dollar gapped higher on the Monday morning open and fell slightly as it hit overhead resistance at the 75.50 level, and is looking unsure going into the London open. This rounding top pattern on the four hourly chart would be confiremd if ATR support at 75 cents proper is closed below tonight:
The data calendar starts the week with the very important and closely watched German CPI print tonight, followed by the equally important US PCE (personal consumption expenditure) while tomorrow we get the BOJ meeting. Its all happening!