 Good morning and welcome to today's products and focus now obviously China continues to be very much in the news and It's a brand new day. So a brand new problem for the global markets So China has decided that the best way to deal with their problems now as one is to remove the circuit breaker So that's now being deactivated Because it was kind of exacerbating the problem the very problem that was there to prevent So Chinese government have gotten rid of that for now. So it's on a pause Also, they have set their mid-price for the yuan to be slightly higher than it was yesterday So that's caused a little bit of a relief rally, especially in some of the commodity markets But there's still a lot of questions lingering about China And we actually have a fair amount of major macro data events to come out in the region over the next few weeks so a lot of traders are going to be looking at that for signs of a slowdown and Other traders are looking at kind of really looking for clues as to what China are going to do next because they had a very clear strategy at the start of the week, which was the circuit breaker to protect against any kind of turmoil and the equity markets and also they had the appreciation to make themselves more competitive for their exports But then they realized that's got a very knock-on effect on the other countries that they're not just going to set There and not react to the devaluation of the yuan so they can keep dropping the yuan But then all the other emerging market economies are going to just drop their their FX as well and we've seen Comments coming out of Europe comments coming out of India that China really needs to come up with a proper strategy And what we're seeing right now is they're being very reactive But they are flip-flopping from one strategy to a different strategy to turning something on to turning something off And the reality is that China has a major problem to deal with and one thing that they're showing right now Is that their strategies are pretty much ineffective and that the are very reactive to even this the smallest amount of changes Now when I say smallest amount of changes We did see a 10% drop in crude and we did see two days of 7% drops on the equity markets But they need to have a clear direction otherwise people aren't going to have confidence in that marketplace and there are a few things now to watch out for one Capital controls being introduced into China and second of all They still have this big restriction on major shareholders not able to sell more than 1% of their stake in a company in a three-month period Now if you're a big investor that is just not not enough flexibility is not not on and There isn't kind of trust that the Chinese government are going to protect the investors all about trying to protect the government And that will put a lot of major investors Put a lot of questions in their head about what their long-term strategy is in the country when there's so much financial and stability Okay, so that gives you a bit of an idea what to expect So when we go ahead and have a look at most of the daily charts for today What you're really going to see is a kind of a kind of a relief rally Some people will ask is it a dead cab bounce? Are they just pausing things for now? But you'll get a chance to see things from a technical analysis perspective So let's go ahead and have a look at the US 30 to start So the US 30 as you can see we have very negative days today the Dow down almost 400 points and we have had this this bounce this morning, which has come up to 16 6 84 But as you can see this is a potential broken support now acting as resistance as you just see from the daily chart from the Support level here. The daily candle has gone up peaked its head just above there only to get pushed back down again Now it seems the markets clients are 63% short at the moment this is up 6% from 10 p.m. Last night UK time and They're obviously hoping that this resistance level is going to hold the other technicals are relatively neutral though You do have a buying signal on the RS I it's just ticking up through that They're a percent level at the moment. So this is where the US market sits So let's look at the UK 100 which has 64 percent sellers again But a beautiful bounce of potential support at 58 79 You can see it's bounced off there. This is the fifth time as managed to successfully bounce not close below that level We're in the middle of two ranges right now with a 60 52 and don't forget today is non farm payrolls That's at 130 UK time of which there will be a live webinar I have no doubt by CMC markets in London and We we're in the middle of two ranges right now So this could really go either way I expect the markets are probably just going to slowly stabilize as we get closer to the non farm payrolls figure because You know people don't don't want uncertainty They want to know what that figure is remember that ADP private payrolls came out slightly better than expected So the market is hoping for a decent figure the question is are they going to go ahead and get it? So moving on to Japan 2 to 5 which has 60% net sellers. It's a lot less a lot less confident We are strong bounce this morning But it's been pushed all the way back down almost to its opening point pretty much bang on this potential support level Around about 17,730 or 17,700 and that's an ugly candle though It's still got a lot of trading left in its session today That would be sending a bit of a worrying signal of how I was trading the Japan to do five right now So it was so much higher. Why is it being pushed all that way back down? So they're moving on to dollar yen Dolly yen Was smashed through 118 yesterday, but it's pushed right back up higher It's not been as aggressive as that move that we saw on the Japan 2 to 5 But as you can see it has been a lot higher has been pushed back down Well, I think will be an interesting move as if it's trades below 118 that would be a dangerous signal for the Kind of the short sellers for the book for the belongs on dollar yen Sorry Because you have to remember with uncertainty people are buying the Japanese yen at the expense of the US dollar The end seems to be the safe haven of choice over and above the yellow metal Which has had a good couple of sessions and we'll get a chance to look at that in a second But if you're along on dollar yen at the moment, I can see that seems to clients are 52% long So there's a lot of indecision right there if it trades below 118 That would send a little bit of a worrying signal What is quite kind of interesting is RSI is quite close to crossing that 30% level though It's not done it yet and the slow stochastic is obviously massively oversold But hasn't had that figure that move back beyond 20 to signal a potential reversal So if we stay above 118 and change today by the end of the session Then that could be quite an interesting setup for next week So moving on to West Texas crude it did manage to bounce off the session loads You can just see the it's kind of a hammer formation. Maybe Now we've been hired this morning. It's been below the session loads 34 spot 26 is a potential Resistance for as long as it stays below here 20 close to 27 dollars is the next potential support You can start using the tip of this candle here as another short-term potential support as well Normally from a technical analysis perspective This would be quite a bullish technical signal But the fundamentals haven't really changed that much at the fact that China have fixed a go on slightly higher today And what they had yesterday it does signal that is that the ons not on freefall But we still don't know what longer-term strategy is from China and that is a necessity if you're trading commodities right now So moving on to gold gold as I said gold's had a fantastic run up up until now I'm returning a dollar yen actually gold to be fair to gold that has had a decent a decent run up until now We broke above 1104 psychological level of 1100 puts a strong a reversal this morning interestingly It was actually higher this morning. It wasn't positive territory seems to clients of 54 percent Short at the moment so close to 50 50 So there's a lot of indecision about that next move, but certainly as trading below potential Resistance right now is just pretty much on 1100 as we are recording this video But be interesting to see how that pans out. Obviously non-farm perils comes out strong gold's gonna feel a pain I think people are already revising US interest rate Hikes to be later on in the year. I think I think we have an 8% chance of a Jan rate hike But people mainly looking towards March April May, etc now for that to happen So we finish up with your dollar and GBP USD Your dollar and having such a fantastic day yesterday very very strong candle and interestingly is stop potentially on this Sloping trend line that we had drawn on here and it's kind of reverse course a little bit this morning Sandwiched in between two moving averages the technicals are relatively neutral CMC clients are 50% 56% short. So they're obviously hoping that that trend line Stays and play and certainly you could be looking at one spot zero eight twenty as an expotential support level But we have to get through that 55 period SMA as well. And if we finish up with GBP USD Hammer formation on the candle yesterday. The cable was getting hammered yesterday Now it's it was able to move higher, but then we've got this doji formation this morning So we can't even manage a bit of positive candle movement to to break the cycle of sell-off You just see it's just been slowly edging lower and lower and lower and lower against the US dollar for some time So it still looks like quite an aggressive move But nevertheless one spot 45 56 could still be the potential support level 74% of clients of CMC Marcus clients by their position value are currently short on cable Let's see if they are right later on in the session So let me just quickly pull up the economic calendar for today as well Make sure you don't forget about non-farm perils. That's a one third UK time and the unemployment rates They're expecting 200,000 jobs anything above 250,000 would be seen as quite Positive and don't forget to keep an eye on that unemployment rate as well. Well guys Thank you very much for for joining me today Very good luck with your with your trading today and join me again on Monday to find out what happened next. Thank you very much And goodbye