Market Summary
Asian markets were quiet, but mostly higher as markets in China, Hong Kong and India were all closed for various holidays. A stronger USD helped lift markets across the region however, as did the weekend data from China showing stronger than expected manufacturing growth.
European markets rose broadly too, with a weaker Euro helping European markets and a weaker Pound helping the FTSE in London. One exception to this was Spain, where the IBEX 35 fell 1.2% after the weekend Catalonian succession referendum saw over 800 people injured by Spanish police trying to keep voters away from the polls.
U.S. markets rose to new record highs, with ISM manufacturing coming in surprisingly high, and at its best level in 13 years. Gains were broad based, and the markets shrugged off a mass shooting in Las Vegas that saw at least 58 people killed and more than 500 injured, which President Trump called an “act of evil” in a morning press conference.
Today’s Assets
GBP/USD
The pair dropped sharply in response to weak U.K. manufacturing data, and on concerns that Prime Minister Theresa May is losing control of her Conservative party just as Brexit negotiations are heating up. While the pair halted its decline at 1.3250 and bounced slightly, it may test 1.3200 for support, and a break of that support could see it drop as low as 1.3000.
Crude Oil
Crude fell on Monday as traders were surprised by data showing falling compliance to OPECs production cuts, but remains above $50/barrel. The bull case remains strong enough for crude to find support at $50, but if it does close below that level it could drop to the lower trendline support around $47.50/barrel.