The pound was once again under pressure from markets as it slipped down the charts and struggled to find any sort of placement against the USD on the charts. Once again markets were left disappointed as manufacturing production m/m came in at -0.4% (0.1% exp). This left the market in lurch as it slipped lower on further disappointing news as European markets continue to disappoint. The UK market continues to be a disappointment in the markets at present as it fails to find any sort of momentum and the recent talks from the Chancellor have so far set the market up for failure. But many are still hoping that the pound can find some momentum upwards.
On the charts the GBPUSD has so far struggled to get past the major support level at 1.4395 and this is likely to be an underlying theme at this stage. Also current moving averages continue to provide any guidance unless the market is shifting upwards, in which case they have previously acted as dynamic resistance. Either way the GBPUSD is likely to find some pressure and the USD continues to dominate on the charts, and given this the GBPUSD will be dragged further until we see real talk about interest rate rises.
Oil also continues to find itself under pressure as many traders will be well aware. So far the weakness in China has been felt across the market, and for the most part it could continue to feel pressure at this stage as Iran comes on to the world market, and Saudi Arabia continues to evoke the power of OPEC at this stage. Despite all of this the real damage is coming from the USD as the strength of it weighs heavily on oil markets at present, and will likely continue to do so until we see some real movement economically in the US market.
Oil markets have so far slipped past support at 32.09 and has continued to fall further than the last decade to around the 30.00 dollar mark. The next level of support can be found at 29.49 and the market is primed for further lows, so we can expect further pressure to come online and into play here for the marketplace. Many are also now expecting oil futures to drop into the low 20's but for me this seems a stretch as the market will likely receive sudden mothballing and merging to help fend of this attack, and as a result the market will likely bounce at these levels.
Lastly, the NZDUSD has found solid support and continues to find itself under pressure as it looks to find higher highs under the pressure of bears. The recent pause at 0.6517 has so far stopped any bearish pressure, but many are anticipating further falls on the charts, and I personally see it coming under pressure as the fundamentals continue to weigh up in the bears favour.
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