Morning Call. Market Overview for 10.10.2016

The Big Picture

Friday 1.06 am, the Far East´s largest stock market Australia had just opened. The Tokyo open was just one hour away. The unthinkable happened. The British Pound lost 10% of its value within 3 minutes. Reaching its low at 1.09am, it managed to retrace most of its losses 8 minutes later at 1.17am and was only trading down 1.5%. This flash crash  didn´t happen in the Rwandan Franc but in one of the world´s top five most important currencies. Massive sell-orders were triggered, presumably through automated computer programs, leading to a huge sell-off. Last year´s Swiss Franc flash crash was at least triggered by important news, leaving investors roiling. This flash crash once again shows, that it is of utmost importance to set loss limits on any trade. Currency markets were left with a tarnished reputation.

DAX

The DAX is in a sideways trend.  Resistance is at 10820, support at 10250.

Euro / USD

The Euro is in a large sideways trend against the Dollar. Support is at 1.0822, resistance at 1.1429.

USD / JPY

The USD is in an upward trend.

Gold

Gold is in a downward trend.

WTI Oil

WTI Oil is trending sideways . Resistance is at 50.66USD and support at 42.72 USD.

Overnight:

The Dax closed lower for the third consecutive day on Friday, losing 0.74%. Trading was volatile, prior to the US job numbers. In addition, Innogy was on its first trading day, the RWE subsidiary being the largest float on the German stock market in 16 years. The issue at 36€, was mostly bought by Anglo-Saxon investors. The first price of 37,30€ was used for profit taking, leaving Innogy to close at the issue price of 36€. US job numbers came in weaker than expected, leaving the USD to weaken against the Euro and Yen. The S&P 500 lost 0.33%. Asian markets are firmer this morning, The USD is softer against the Euro and unchanged against the Yen. Gold gains 0.46% and WTO Oil is down 0.86%.

Economic Data:

• 08:00 Germany: Trade Balance

Quarterly Results:

• No relevant data

RoboForex Analytical Department