The World Woke Up Overnight (Aug 10th pm/11th am)


As discussed on my previous post, the world is not a perfect place on a fundamental basis, in light of improving economic figures out of the UK & Eurozone. Reality will come to light & sink in eventually.

As noted earlier, Europe & the UK are starting to face an issue with inflation. The UK wants to keep inflation in check at least above 2%. Per the inflation report released over night, it is currently above 2%, but is lower than has been.  They are expecting it to dip below 2% in 2 years.

Another place to keep an eye on is China, who released a slate of numbers last night showing their economy is softening as well.  Inflation met expectations, but still declining & expects to do so as early as this year.  Retail sales, new loan lending, and money supply also decreased.  Overall economic growth slowed to 10.3%, from 11.9%, still, expecting to grow by 9% at year’s end. Housing prices are increasing less (10.3% year-on-year in July, down from 11.4%). Exports are in a decline (increase 38.1% year-on-year in July, from 43.9% year-on-year in June).

On to a few charts, to get an idea of what has occurred past couple of days & what maybe ahead.  Below is the S&P e-mini, where we broke a trendline & woke up this morning below the 50 fib level (2010 high/low). Next area of note on the downside is the 38.2, 1084.11.

Below is the US Dollar Index. Note there is a double bottom on the daily at the 80.20 area. The next path to resistance is in the 82.20s.

The US equity marker opens in less than 2 hours. Economic releases includes trade balance out of the US & Canada at 8:30 & crude oil inventories at 10:30. Happy trading!

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About Clair Wyant

I am a foreign exchange & stock/ETF trader in Boston, MA. This blog will be dedicated to my out look in the economy, the financial markets, with an emphasis in foreign exchange. When I am not working, I enjoy watching sports, participating in recreational sports leagues, travel & spend good times with my friends.
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