TheCable

Global Markets

The Shanghai Composite Index is continuing to struggle when it comes to finding direction, with the major market looking set to conclude the week in red territory. This has been a week of mixed data releases for the China economy with both imports and exports dragging sharply lower, while on the other hand headline CPI exceeded expectations. Still, the huge decline in PPI has warned market participants that China is still facing inflation pressures, and sentiment remains bearish for the China economy.

China Premier Li Keqiang talked down growth concerns when he expressed at the World Economic Forum in Dalian that the Chinese economy was stabilizing, but this doesn’t comply with the recent poor performances from the China economy, and the Industrial Production data set to be released on the 13th September will provided further direction.

The Sterling is continuing to enjoy improved investor sentiment following the BoE’s comments that the recent global events have not altered the central view from the MPC. Bullish sentiment with the GBPUSD has been reinstalled and can be viewed on the GBPUSD with prices trading to new monthly highs. The improved GBPUSD sentiment may remain as a theme until the next major release next week, with this being the upcoming UK CPI report. Technically, the GBPUSD has breached the daily 200 SMA and currently is finding resistance below the daily 20 SMA. A breakout may open a path to the next relevant resistance at 1.5500.

WTI has been relatively stable since the hefty incline that occurred during the final days of August. A wave of risk aversion which restrained the US markets on Wednesday trickled down to this commodity, sending prices to the $44.00 before a rise back to the sticky $46.00 where prices have managed to cling on for the most part of the trading week. The reoccurring theme of oversupply in the markets that has been repeated and continually talked about for months may have lost its kick and market participants might be waiting for something fresh, such as a reduction in demand following global growth concerns to act as a major catalyst for the next move in WTI. Technically, WTI has breached the daily 20 SMA and is currently bullish but also resides in a range with support at $44.00 and the first line of resistance at $46.00 where prices are currently consolidating.

USDCAD

The USDCAD is technically bullish. There are higher highs and higher lows and prices are above the 20 SMA. The MACD is trading to the upside and support can be found at 1.3110. A breakout above the 1.3350 resistance may open a path to the next relevant resistance at 1.3800.

USDCHF

The USDCHF is technically bullish on the daily timeframe. Prices are above the 20 SMA and the MACD has crossed to the upside. The pair may be in a correction period but as long as prices can keep above the previous higher low of 0.9570, a further incline back to the 0.9820 resistance may be expected.

USDTRY

USD strength can be viewed within the USDTRY, making this pair technically bullish on the daily timeframe. As long as prices can keep above the 2.985 support, a breakout above the 3.0600 level seems realistic. The MACD trades to the upside and prices are above the daily 20 SMA.

SILVER

Silver has been technically bearish on the daily timeframe for an extended period of time. As long as prices can keep below the 15.00 level, a decline back to the 14.30 support may be expected. The MACD trades to the downside and prices are below the 20    SMA.