Paul Gallacher
City Trading & Investment
Market Commentary
Markets are commencing the week with a broad phase of sta-bilization. European equity indexes have been trading in the green since the open, with the PSI 20 outperforming other in-dexes, with the current daily gain at 1.48%.
There have not been any particular shifts in fundamentals that would have warranted today’s extension higher. The scale of the recovery is perhaps exaggerated by the scale of the de-clines last week.
The USD weakness which materialized in the latter part of Fri-day’s session has by now abated.
There is no notable data scheduled for release for the rest of the session, which might contribute to assets remaining con-fined to range-bound trade.
Intraday Strategy: E-mini S&P
E-mini S&P is currently stabilising within a consolidation range, de-fined by last Friday’s low and high.
Taking into account the quiet markets today, we are expecting range-bound conditions to predominate. Our strategy for the day ahead, therefore is to sell into waning strength at the upper bound-ary of the current consolidation range ( Friday’s high ).
Intraday Strategy: DAX
Our strategy for the Dax for today is to sell into a pullback to R1, aiming for a follow through to the pivot and last Friday’s low.
Intraday Strategy: EUR/USD
Our approach for the EUR/USD for the session ahead entails sell-ing into waning strength on a pullback to last Friday’s high, with targets at the pivot and S1.
Technical Analysis: Nasdaq and DJIA
Similarly to the S&P, Nasdaq and DJIA are trading within consoli-dation ranges so far today.
Technical Analysis: Bund and US 10-year T-note Futures
Bunds and 10-year treasury futures closed last week virtually un-changed from pre-FOMC levels, with weaker US employment data on Friday providing an impetus to the upside momentum.
Technical Analysis: GBP/USD and USD/JPY
GBP/USD is stabilising above the 1.68 handle following a protract-ed slide from the highs of the year. JPY weakness, predominating in the early part of last week has abated for now.
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