Our trade call is to sell Cable on a Manufacturing PMI reading below 51. Both stop-loss and take-profit approximately equal the ADR of 140 pips, but both should be set above significant levels of support or resistance. 

Current Market Sentiment:

The Asian session saw multiple high impact data points; Building Approvals from Australia missed estimates at -7.5% m/m vs-2.9% expected. The Aussie saw some downside post release, and the decline continued with both the Chinese government NBS release and the Markit/Caixinrelease for Manufacturing PMI missing estimates at 49 and 48 respectively.There was limited risk-off reaction to the miss as the market has now priced ina steady slowdown in Chinese manufacturing. 

After declining 40 pips during the first half of the session, the Aussie then saw upside as the RBA statement failed to strike any new dovish tone and largely reiterated the prior statement. The Aussie rallied 50 pips post-release, also helped by gradual moves higher in WTI and Asia-Pacific indices marginally in the green.

Ahead we have the Purchasing Managers’Index for the UK’s Manufacturing sector.  

P.S. This release was also covered in the weekly risk events video. You can watch it here. 

At no time should anyone view the information presented anywhere on this website as advice, recommendation or proven. Everything reflected is merely opinion and may not be accurate. The purpose of the site is to express the opinions and views of Jarratt Davis. There is no intention to offer specific help, advice or suggestions to anyone reading any of the content posted here.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD steady below 1.0800 after US PCE meets expectations

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.

EUR/USD News

GBP/USD hovers around 1.2620 in dull trading

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.

GBP/USD News

Gold price sits at all-time highs above $2,230

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.

Gold News

Jito price could hit $6 as JTO coils up inside this bullish pattern

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.

Read more

Key events in developed markets next week

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.

Read more

Majors

Cryptocurrencies

Signatures