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STOCK MARKETS SELL-OFF AFTER WEAK US MANUFACTURING DATA

Oct 2, 2019 (07:39)

by John Knobel

Prospects for higher stock markets remain on hopes of lower US interest rates
Dow Jones 30 gained +8% (2,070 points) from the August low to September high
Its normal for markets to corrected lower after big upward moves
Correction levels are normally at 38.2%, 50% and 61.8% of the previous high to low advance
Dow Jones current price 26,554 touches the 38.2%
Buyers may be looking to enter new long positions near 26,554 (38.2%), 26,278 (50%) and 26,033 (61.8%)

UK RISK LEAVING EUROPEAN UNION WITHOUT A DEAL

GBP/USD drops -82 pips last 5 days
EUR/GBP gains + +50 pips last 5 days
Bank of England may have to cut GBP interest rates if UK leaves EU without a deal, this prospect holding down GBP
Stronger USD adds to cross selling the GBP against other pairs

CRUDE OIL (CL) WITHIN “BUYERS SUPPORT ZONE

Crude Oil price up +1.25% near the opening EU session today
Price moves higher on bets that the US will show a large drawdown in US crude oil inventories
Crude Oil inventories weekly data report due later today

Source: FXGM / Bloomberg

The original content of this Market Update is done in the English language. Any other language translation is provided for the sake of convenience. In case of any inconsistencies between the original English version and any other language, the original English version shall prevail.

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