GBPUSD is currently stabilising after this morning's sell-off

Market Commentary

EU and US equity markets remained in range-bound trade throughout yesterday’s session. Stronger US ISM Non-Manufacturing report for July failed to turn the negative senti-ment around and US equity indexes finished the day near the lows of the session.

Risk-off sentiment has been predominating so far this ses-sion. In addition to the continuation of geopolitical concerns surrounding the buildup of Russian troops near the Ukrainian border, weaker EU data is prompting broad risk aversion.

Taking into account the limited flow of data for the rest of the session, the current downbeat sentiment has the scope to es-calate following the US cash open.

Intraday Strategy: E-mini S&P

For today’s session our strategy is to sell into a pullback to the piv-ot, aiming for a follow through to sub-1900 levels.

Intraday Strategy: DAX

Our strategy for the Dax entails selling into a pullback to the 15th April low, targeting S1 and 14th March low.

Intraday Strategy: EUR/USD

EUR weakness set in this morning following weaker data from Ger-many in addition to weaker EU member states’ retail PMIs and a negative Q2 GDP print for Italy.

Our strategy for the day ahead entails selling into a pullback to last week’s low and targeting an extension to S1 and below the current low of the day at S2.

Technical Analysis: Nasdaq and DJIA

Broad risk-off sentiment prompting a sell-off in both European equi-ty indexes and EU equity index futures ahead of the open.

Technical Analysis: Bund and US 10-year T-note Futures

Bund futures are trading at new all-time highs and US 10-year treasurys are also bid, both supported by flight to quality.

Technical Analysis: GBP/USD and USD/JPY

GBP/USD is currently stabilising after this morning’s sell-off.

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