UK retail sales versus Vodafone payment

<p>I’m a little surprised to see the market discounting the negative Chinese HSBC PMI data yesterday that pretty much indicated that all components for small […]</p>

I’m a little surprised to see the market discounting the negative Chinese HSBC PMI data yesterday that pretty much indicated that all components for small businesses in China are now in contraction territory. This has seen further declines in the CNH yet, despite this worrying outlook, global risk trade is still looking constructive as the Nikkei stages a 3% rally with the S&P still eyeing the 1850 level.

In other news the G20 starts in Sydney with discussions likely to focus on structural reforms in emerging markets although I hold little hope that a policy will be implemented this weekend to ease the recent volatility within the region. President Obama is due to meet the Dalai Lama today which could possibly test the resolve of the US-China relationship.

All about the proud pound today as we wait to see if again, lower prices (CPI) have equated into a second month of stronger retail sales. The market is also speculating that the first Vodafone/Verizon FX transaction needs to be completed today. I’m cautious that the market is long sterling heading into these events, making the downside vulnerable to any disappointment. The US session brings us second tier data in the form of existing home sales.



Supports 1.3680-1.3615-1.3580 | Resistance 1.3780-1.3825-1.3895



Supports 102.00-101.75-101.45 | Resistance 102.80-103.00-103.50



Supports  1.6625-1.6600-1.6550 | Resistance 1.6740-1.6820-1.6880


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.