Market Commentary
The flash estimate for HSBC China Manufacturing PMI set a 3-month low in July, coming in at 50.3 vs. prev. 51.7. The survey reported a slower rate of increase in new orders and a faster pace of decline in employment.
French Manufacturing PMI for August came in at 46.5 vs. prev. 47.8, Services PMI at 56.4 vs. prev. 56.7. German Manufacturing PMI came in at 52.0 vs. prev. 52.4, Services PMI at 56.4 vs. prev. 56.7. EU Manufacturing PMI came in at 50.8 vs. prev. 51.8, Services PMI at 53.5 vs. prev. 54.2.
UK Retail Sales rose 0.5% in July vs. prev. –0.1%.
Initial and continuing jobless claims dropped to 298,000 (vs. prev. 312,000) and to 2,500,000 (vs. prev. 2,549,000), respectively.
Intraday Strategy: E-mini S&P
Our strategy for the day ahead is to buy into a pullback to the pivot, with R1 and R2 as targets. US data later on in the afternoon present the major caveat to the feasibility of this setup.
Intraday Strategy: DAX
Our approach to the Dax is to buy into a pullback to S1, targeting an extension towards Tuesday’s high and R2.
Intraday Strategy: EUR/USD
Our approach to the EUR/USD for today entails selling into waning upside momentum at R1 / 1.33 handle, targeting an extension low-er to the pivot and the low of the session.
Technical Analysis: Nasdaq and DJIA
Technical Analysis: Bund and US 10-year T-note Futures
Technical Analysis: GBP/USD and USD/JPY
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Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.