Markets banish China concerns for now

​​It was a shaky start for European investors this morning, as cautious buying took the place of last week’s rampant selling. Weekend data from China was not particularly encouraging, while gyrations in the Chinese FX market continues, but as with any story eventually the power to shock wears off. We are seeing this with China this morning, and while there will still be plenty of concerns, the impending arrival of US earnings season provides a new story to focus on. For the FTSE, the market continues to find support around the lows seen in August, September and December of last year, and so while this holds buyers will remain optimistic the downward move of early January has run its course.

EURUSD – New bullish support line after 200+ pip move

​​The huge EURUSD move overnight saw a high of 1.1145 amidst talk of speculators becoming jittery about growth in the US following some disappointing figures. This 200+ pip move changes our overall P&F analysis of the pair as I’ll explain. ​The primary focus is the break of the previous long-term bearish resistance line (downtrend) in place and the creation of a bullish support line as shown on the chart above.

$US lower again on Fed rate hike doubts. US Jobs numbers in focus today.

​​The downside pressure on the US$ has continued into Friday trade and comes ahead of today’s US Jobs/NFP data. The exception was Cable, where the BOE left rates unchanged, as expected, but the vote count was unanimous as opposed to the expectations of being left at an 8-1 majority in favour of leaving rates on hold.

Zloty is back in emerging markets

​​​​Global sell-off of risky assets triggered by China brought volatility to markets in Central Europe too. Not only regional equity markets but also the Polish zloty have evidently become victims of the sell-off. In the recent period, which coincidentally matches the arrival

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