Reports from Beijing turns the beat around
The US stocks are taken the dip in premarket trade as reports that Beijing is pessimistic about US China trade talks, sends shares lower. The Dow futures are now implying a lower opening (-15 points).
The fall has also taken the USDJPY lower on flight into the relative safety of the JPY. Technically, the fall took the price back below its 200 hour and 200 day moving average at the 108.945 – 97 area. The price also fell below a broken trend line at the 108.85 area and the 100 hour moving average at 108.793. Those last 2 levels are risk levels for shorts now. Stay below is more bearish.
The pair still remains above the low for the day at 108.66. The 50% retracement of the move up from last week's low comes in at 108.546. Those are targets now on increased weakness.
The market has traded this story a number of times of course (too many to ever count). Sometimes the story has legs for a while, but ultimately, things get back on track down the road.
Nevertheless with stocks closing at all-time record highs on Friday, there exist that potential for profit-taking that weeks over into the forex market as a result. The snapshot currently shows the Dow -30 points, and the S&P index down -5 points.
Yields in the US has also moved lower with the 2 year now down -1.2 basis points and the 10 year down -0.9 basis points. Spot gold is recovering after falling to as low as $1454.61. It currently trades at $1465.50, down $-2.70.
