Optimistic Chinese Manufacturing Data

Defying all expectations of a slowdown, the China Caixin Manufacturing PMI for June released at a three-month high, beating the Reuters poll forecast. Expanding manufacturing activity in the Asian tech sector increases momentum due to the global demand for electronic products. More good news for China, as the MSCI greenlighted adding Chinese Stocks to its emerging markets index. Citing it as a “game changer” Chinese bonds could be next with its launch of the “Bond Connect” program.

source: CNBC, Investing, Reuters

More news on PMI with the release of the German Manufacturing PMI, U.K. Manufacturing PMI and the U.S. ISM Manufacturing PMI for June also due for release today. PMIs act as an indicator of the overall economic health of the manufacturing sector, and economy as a whole.

Gold prices took a fall in Asian markets on Monday after the upbeat results of China Caixin PMI. Monday saw a rise in Oil prices due to the drop in U.S. drilling activity for new oil production. OPEC production is also up, indicating a reasonable oversupply in the global oil markets. Meanwhile, Tesla Inc.’s Model 3 passed regulations for production. This news came two weeks ahead of schedule, which means production of the $35,000 sedan will be on full steam in July.

Technical Analysis

USOIL

USOIL

The WTI crude took to a commendable uptrend on Friday as from 14:00 GMT, thus leaving the $45.20 a barrel handle to hit the $46.31 a barrel line at close. The commodity was spotted consolidating at that level yesterday and opened today’s session on a bearish note and kept treading waters. It was spotted at the $46.15 a barrel line at 04:00 GMT and is expected to keep zigzagging around similar levels for most part of today while it might further turn bearish as from 18:00 GMT.

GBP/USD

GBP/USD

An interesting trend recorded by the GBPUSD currency pair is to be taken into consideration today. Since Friday, the Pair recorded a cup and handle pattern. As such the pair was seen recording an significant set of pullbacks as from 23:00 yesterday till 05:00 GMT today, time at which it closed at 1.2994. As from the next hour, the GBPUSD pair picked up momentum and may pick up some strength further during the day. 60 Seconds Trading would be most advisable.

JPN225

JPN225

The Japanese Nikkei 225 was seen recording an ascending triangle pattern since last week and is can be seen sporting the same stance today. Having started off today’s session on a bullish note, the index lost in strength to again pick up momentum to be las spotted at the 20052 line. The zigzag might continue for quite some part of today. Trade these using Classic Binary Options.

Things to watch on the market

Tip 1

With China’s Caixin Manufacturing Purchasing Managers Index (PMI) released today, it is good to keep an eye on the Shanghai composite for trading opportunities.

 

Tip 2

The british pound is not to be overlooked too as important data being released in the United Kingdom might impact on the currency today. Keep an eye on the GBPUSD currency pair.

 

Tip 3

The Japanese Nikkei is also to be followed well as it is trending a pattern which can generate a lot of trading opportunities.