Traders focus on announcements this Thursday

Investors are exercising caution ahead of Thursday, when we expect both China flash PMI and FOMC minutes.

HSBC and Market Economics are due to release a preliminary reading of China’s manufacturing PMI numbers for August on Thursday, 22 August. The Bloomberg survey expects a contraction of 48.2.

The official manufacturing numbers showed stability in the manufacturing and non-manufacturing PMI in July. Investors will look to the HSBC flash number for any sign of recovery since the government implemented stimulus plans for SMEs.

We expect consolidation in gold after a run up of 12.5% since 28 June. There are two possible scenarios with resistance at $1375. There could be consolidation to $1315, or bullish sentiment acting as a catalyst, pushing gold past the resistance of $1375 and towards the next resistance level of $1421.

Confidence in the UK economic growth recovery is gaining momentum after services, manufacturing and construction indices rose. Gilts fell for a fourth consecutive week, with investors expecting the Bank of England to raise rates. We hold a bullish view on the GBP/USD. It has broken out of a bearish wedge with further upward momentum expected.

We see resistance for the USD/JPY at 97.70, which has been unable to break out of the 98-99 levels.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.