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Is Rampant US Dollar Strength Starting to Struggle?

With US markets continuing to outperform the rest of the world, Michael Hewson looks at whether the rampant dollar rally is starting to show signs of weakness.

  • The DAX is still seeing weakness and needs to break above the 200DMA which is capping gains
  • With expected downgrades for growth and inflation from the BoE Inflation Report, sterling remains in a descending wedge
  • AUD/USD is looking oversold and has struggled to break below $0.85 and Chinese data may hold the key to a rebound towards $0.88
  • The possibility of a pullback in USD/CHF towards $0.95 level remains whilst the pair is below the recent highs

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Conduct Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.

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Have the Bank of Japan Inspired Stock Market Gains Topped Out?

After the surprise move by the Bank of Japan to extend its stimulus, Michael Hewson discusses the boost to stocks, the weakening of the yen and where we go from here.

  • The S&P 500 rallied to all-time highs, just above 2024, even though the BoJ change merely cancels out the Fed’s final taper
  • The tremendous jump in the Nikkei 225 to 17,000 has since shown a bearish engulfing candle, which may pose a risk to the rally if further gains are not seen
  • In Germany, the DAX gapped higher, with some expecting the gap to be filled as we have not broken above the key 50DMA
  • Crude oil continues to dip as Saudi Arabia put the squeeze on US shale producers, with WTI set to retest key support at $74 per barrel

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Conduct Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.

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Can Stock Markets Rally with Any Conviction Given the Economic Backdrop?

Whilst stock markets have seen a strong rebound from the recent lows, some indices are seeing technical weakness and Michael Hewson asks whether we will continue to see conviction buying.

  • The DAX has seen a significant rebound but the index is struggling to break above 9,120 and a key reversal day may add to this weakness
  • After a strongly negative candle, the Italy 40 may be set for weakness if it cannot break back above its weekly highs
  • Crude oil is trading sideways within a triangular consolidation and may soon see a sharp breakout to either side
  • Cable seems to be showing signs of a break above its descending wedge pattern and may be seeing an inverse head and shoulders which also points to the upside

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Conduct Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.

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Will the Evolution of UK Shopping Habits Continue to Weigh on the FTSE?

Following recent market volatility, Bill Hubbard gives his opinion on where stocks might go from here and what political change is needed to help the Eurozone.

  • UK supermarkets have faced trouble as shoppers’ buying habits have changed, moving from larger weekly shops back towards a more ‘corner shop’ mentality
  • Volatility seems set to continue but Bill wants to keep his ‘powder dry’ and is willing to lose the initial stages of a significant rally to be sure of the up move
  • UK interest rate expectations are being affected by a cooling of the housing market as political rhetoric refers to a ‘mansion tax’
  • Crude oil has been slammed as supply has hugely outstripped demand, with the price now falling significantly below the production costs of some nations
  • With EUR/USD slipping, can political issues be overcome in order to weaken the euro further to help the periphery and overcome disinflation

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Capital Spreads.

The contents on CleanFinancial.com are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by Capital Spreads which is Authorised and regulated by the Financial Conduct Authority. FCA register number 3218125.

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Can the DAX Maintain its Bounce if Data Continues to Disappoint?

Stock markets have strongly reversed from their slump on hopes that the Fed may not end its QE programme and central banks will keep interest rates low for an extended period.

In this trading video, Michael Hewson questions whether this is the case and looks at whether we can expect the selling in indices to have come to an end.

  • Whilst indices have bounced, the DAX has failed to break back above the major resistance at 9000, but is there a bullish inverse head and shoulders pattern forming?
  • Is the dollar set to lose some ground? EUR/USD has bounced from the lows and has posted some bullish patterns but we need to break above $1.29 to target $1.30
  • UK growth seems to have plateaued, but if sterling breaks above its descending wedge formation, we may look towards $1.63

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Conduct Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.

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