Morning Insights 11th May

Simon Alagbe

Analyst


Instrument: US100

Technical Analysis

Bullish Preference: Buy position is envisaged if price trades above 13290.50  with take profit at 13315.68.

Bearish Preference: Sell position is envisaged if price trades below 13127.36 with take profit at 13099.50.

Fundamentals:   

No major fundamental.

Comment:  The stocks markets are seen flat since the start of the week and weakening at the open Tuesday, following the previous session’s tech-led selloff on Wall Street on increased inflation worries. Investors have turned their backs on longer-duration growth stocks as ongoing inflation pressures, with commodity prices surging, amongst other increased worries of the next Fed. Reserve steps.



Instrument: GBPUSD

Technical Analysis

Bullish Preference: Buy position is envisaged if price trades above 1.41305 with take profit at 1.41537.

Bearish Preference: Sell position is envisaged if price trades below 1.40899 with take profit at 1.40663.

Fundamentals:

BOE Gov Bailey Speaks (GBP) 3:30 PM

Comment: The dollar was up on Tuesday morning in Asia, but gains were capped by expectations that already-surging commodity prices will rise further. Investors now await inflation data from the U.S., including core CPI, that will be released on Wednesday. Meanwhile, the UK keeps marching towards normality. The country reported zero new covid-related deaths for the first time in over a year and continues with its reopening program.

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