The BoE is widely expected to keep interest rates steady today, but could signal a need for a further cut in November when it provides an updated outlook for inflation. The central bank slashed its benchmark rate last month to 0.25%, the lowest level in its 322-year history, and expanded other measures to bolster the U.K. economy amid Brexit fears. Meanwhile, data overnight showed British retail sales remained resilient in August after a bumper July.
In Asia, Japan -1.3% to 16405. Hong Kong +0.6% to 23335. China +0.7% to 3002. India +0.1% to 28412.
In Europe, at midday, London +0.1%. Paris -0.1%. Frankfurt +0.1%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.3%. Crude +0.7% to $43.89. Gold -0.1% to $1324.30.
Ten-year Treasury Yield +1 bps to 1.7%
(Source: Seeking Alpha)
8:30 Initial Jobless Claims
8:30 Producer Price Index
8:30 Retail Sales
8:30 Philly Fed Business Outlook
8:30 Empire State Mfg Survey
8:30 Current Account
9:15 Industrial Production
9:45 Bloomberg Consumer Comfort Index
10:00 Business Inventories
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
Bulls failed to convert 2128 handle to new upper support and as such, selling re-emerged pushing price progressively lower throughout the prior session testing the 2112 handle for support. Trend dynamics favor Bears at this stage unless Bulls can recapture 2128 handle, which has now converted to solid resistance.
Today is Cycle Day 3 (CD3)…Price violated CD1 Low (2112.25) in early overnight trade and has since bounced back to 2120.75 – 2123.25 Central Pivot Zone. We will mark 2124 handle as minor resistance and 2128 as more significant resistance.As long as price stays above CD1 Low (2112.25), it will be a technical positive 3-Day Cycle, albeit with bearish overtones. Bulls will need to defend 2108 – 2112 zone as support, otherwise additional forced margin selling may unfold.
Range Projections and Key Levels
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (Z) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.
Scenario 1: IF price can hold above 2112 handle, initial objective is to push through 2122 – 2124 zone and convert to upper support. Should this occur then second objective is 2128 – 2130 zone.
Scenario 2: Price has violated CD1 Low (2112.25) in overnight trade and has since bounced…Another violation during cash session of 2112 – 2108 zone may produce forced margin selling if Bulls cannot adequately defend. Lower expansion levels to be mindful of are: 2106 down to 2100 handle.
Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.
Stay Focused…Non-Biased…Disciplined ALWAYS USE STOPS!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
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