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December Fed Rate Hike Probability Increases

Published 19/11/2015, 13:49
EUR/USD
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UK100
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US500
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DE40
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SSE
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DX
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SSEC
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Single stocks

EasyJet: Chart suggests support is coming in. Technically, favouring a range-trade

Rolls Royce: Saw 4 profit warnings. Technically, charts show a gap to the downside, might see a dead cat bounce

SSE (L:SSE) : Technically, remains in the buying zone

Royal Mail: Gap through 200DMA, Back to 5GBP and higher while above this

Lloyds: Support at 72p, Current levels serve as an easy entry point for investors

OMI: Bear trap below 50 DMA, could get back towards 10p

WSG: V shaped bull flag, Upside target at 20p

The major indices: S&P 500, DAX, FTSE, Nikkei, Shanghai Composite

Batsford highlights Colin Twiggs who infer the following:

S&P 500: Posted two strong bullish candles suggesting that the correction is now over, expect resistance at around 2130

DAX: Testing the psychological resistance at 11K, breaking above this will be bullish for 12,400

FTSE 100: Lot weaker, support at 6100

Shanghai Composite: Testing new support at 3500, breach would open up 3000

Nikkei: Respected 19k support, confirming another test of resistance at 21k

FOMC Minutes: Dollar bulls disappointed


Batsford highlights FXStreet, who view that the non-event FOMC minutes disappointed the USD bulls but kept the December rate hike bets unchanged.

On the EUR/USD, they note that the cross requires a move above the 50DMA to go bullish, and could even see a corrective rally towards 1.0824as we head into the ECB meeting.

Hubard notes that the probability of a December hike stood at 75% before the FOMC minutes, and has climbed to 80%. With a Press conference schedule after the December meeting, Hubard believes that the Fed has boxed itself in.

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