News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Equities Sink Closer to True Reversal, Pound Traders Read Election

Equities Sink Closer to True Reversal, Pound Traders Read Election

2015-05-06 21:50:00
John Kicklighter, Chief Strategist
Share:

Talking Points:

• Equities took another stumble (China posted its first 2-day drop in 3 months) drawing near to key levels

• Risk aversion is not yet a self-sustained theme, and rate speculation wouldn't span to the Dollar

• The Euro's optimism on Greece and Pound's implied volatility for the election should draw doubts

Sign up for a free trial of DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!

Stock markets took yet another step towards the risk aversion move that many speculators have long awaited. A global slip would push China's Shanghai Composite to its first two-day loss in three months, Australia's ASX200 to a major range break and the United States's S&P 500 back into view of its multi-year channel floor. Yet, as impressive as these technical moves and levels are, conviction is still not set into the self-sustaining cycle necessary to form a reversal in years of conviction. In the meantime, scheduled event risk is generating unique developments for certain regions and currencies. The Euro's rally in the face of ongoing Greek negotiations should have traders questioning the permanence of the move. For the Australian Dollar, employment data ahead may prove more definitive than the past RBA decision. And, top event risk is Thursday's UK election. We cover these key market themes in today's Trading Video.

Sign up for John’s email distribution list, here.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES