Trading Insights: Dip buyers emerge in front of today’s big data day
Market Talk
Dow 30 closes +326 points higher from previous sessions low
Key US data due at 1:30 GMT today
- US Core personal consumption expenditures (PCE) measures prices paid by consumers for goods and services without the volatility of price moves in food and energy, it's a good indicator of “Real Inflation”
- US personal income is forecasted to increase from 0.2% to 0.7% m/m, its a good indication about future inflation
- US personal spending is expected to increase from -0.2% to 1.1% m/m, it's a good indication on the strength of the economy
Today’s Economic Events
| Time: GMT+0 | Country/Region | Economic Indicator | Previous | Forecast | Actual | Units |
|---|---|---|---|---|---|---|
| 12:01:00 AM | Great Britain | Gfk Consumer Conf | -45 | -43 | -38 | - |
| 7:00:00 AM | Germany | GFK Consumer Climate | -33.9 | -30 | -30.5 | - |
| 7:45:00 AM | France | Consumer Sentiment | 80 | 80 | - | - |
| 1:30:00 PM | US | Personal Income m/m | 0.2 | 1 | - | % |
| 1:30:00 PM | US | Total PCE Price Index m/m | 0.1 | 0.5 | - | % |
| 1:30:00 PM | US | Core PCE Price Index m/m | 0.3 | - | - | % |
| 3:00:00 PM | US | New Home Sales | 0.616 | 0.62 | - | - |
Cross-asset commentary
Euro Stoxx 50 index
Euro Stoxx 50 index moved higher again yesterday after price bounced off the 4,211 support in a signal that technical “dip” buying is emerging; upside momentum seems to be holding, although the MACD and the RSI (daily chart) has slowed. Next key resistance is seen at 4,303 and a break above opens the prospects for a run at the November 18th 2021 highs at 4,410; downside risk seen below 4,211 with 4,100 seen as key support
USD/JPY
USD/JPY the pair is now firmly above its 50 day moving average (bullish), the move above the 132.77 previously seen as a key resistance has now turned into a key short term support; the MACD trend following indicator indicates uptrend is in play (see chart) and the RSI momentum indicator indicates upside momentum; potential prospects for a move towards the next resistance at 136.8 provided price can remain above the 132.77 support
Dow Jones 30
Dow 30 Index risk appetite seen improving after Wednesday's FOMC meeting minutes; Dow 30 bounces +326 points higher off the key support near the 32,950s during yesterday’s US trading session in a signal that “dip” buyers are emerging around key technical retracement levels; however despite the positive bounce higher, the index from a technical point remains neutral and within a trading range; upside prospects for a further bounce towards the 33,580s remains in the very short term (5-13 days), provided the index does not fall below the 32,950 support (see daily chart).
Not investment advice. Past performance does not guarantee or predict future performance.
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