The market has been feeling the heat today as 3 British property funds have suspended payments and the Bank of England has looked to reassure the markets it will do what it takes to protect the economy. Carney today was supportive for the economy as he looks to get fiscal and monetary policy in line in order to protect the fall out of the Brexit that is coming, despite all of this he talked up the drop as not a negative, but instead a positive for British exports who are likely to reap the benefits in the long run, especially if the pound continues to fall. The fall out of it all is likely to take some time and some are now anticipating the pound to even to drop as low as equal to the dollar - I think though that is sometime off and unlikely to happen in the near term.
For the pound it's currently stuck on the psychological level at 1.3000 and it's unlikely to push through unless we see further bad news for the pound. However, given the recent economic data out for the services industry which registered a drop, we could see increased pressure. For myself I believe that if we do see a push through this level it could lead to further pressure in the 1.20 range and long term damage to the UK economy. Technical indicators are unlikely to be much use here as they pound has fallen so rapidly it is struggling to even come to grips with the use of technical's. A lift back upwards though is likely to find strong resistance at 1.3214 and the market will be hard pressed to justify any higher highs at present.
Silver has also had a large week as it has jumped sharply up the charts and been slightly overbought in the wake of recent events. It has managed to stop just short of 21.197 which is acting as hard resistance against any further rises, it will however be interesting to see if the recent weakness globally continues to drive silver higher, or this is the end and trader are starting to unwind. Any push lower will likely find support at 18.791 and at this stage it looks likely we could see a push lower to test the markets appetite for precious metals in the wake of the global uncertainty.
Lastly, oil markets continue to be a absolute rollercoaster for traders, as despite the recent drop in oil inventories last week (-4.05M) the market is still polarised by the prospect of a weakness in global growth which will be unable to offset the current drops in production we have seen. After touching support at 46.67 the market is looking to sell-off and jump higher, however, the trend is your friend and in this case I would be looking for oil to creep back lower as at present the hour candles are showing bears are still very much in the market.
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