 Hello and welcome to the Monday Market Update with me David Mountain. Today's date is Monday, the 9th of July 2018 And the time has just gone 12.03 British summer time Big news of the last 72 hours has been David Davis the British the former Secretary of Brexit has resigned This has been a major political story but in terms of the financial markets has really been a major story We did see a sell-off in the British pound around midnight last night when the announcement was made But this morning the British power is actually higher against the West dollar But still remains a bit lower against the euro like I said It's a major political story for the time being there's been a major reaction from the financial markets Although it clearly does undermine Theresa May's prime ministership and there's already kind of speculation is you're going to be a Leadership challenge and it should we should we go down that road? We could see increased certain that increased political certainty which could lead to Pressure being applied to the power, but for the time being starting as a region be steady Taking a look at a European economic markets here We can clearly see that European economic markets have been earned fairly good shape comes come essentially We had a very strong session in Asia overnight and it appeared that this the sell-off we saw particularly in Asian equities In the past few weeks on the run-up to the both sets of tariffs on the Chinese goods and American goods to the tune of 34 billion dollars Which came into a we came into an implementation on Friday just gone It would appear that that that sell-off was actually a bit overdone So it's a solid finish in Asia overnight and that's strictly true to the fairly good start to Europe today It's also worth pointing out that the Mid of the road or reasonably good Not far and pair of speakers from the United States last Friday is also adding to the bullet sentiment But it is worth noting that the trace done up to the United States and watch and China If anything, it's actually got it's actually gotten worse So whether this positive sentiment could will last for much longer still remains to be seen because Tensions are actually are clearly higher now than they were a few days ago. Although the financial markets would reflect that Take a look at the week ahead The week ahead article can be found on our website go to the CMC markets calm and under news and analysis You will find the week heads. You'll find the article with And you'll find you find the various articles that we do on a daily basis Under the news and a section you can find the week ahead article, which is published last Friday Looking ahead to tomorrow a cattle the online grocer have first-class figures coming out on Tuesday also tomorrow. We have CP Chinese CPI and on Friday. We have Chinese trade figures So anyone's trading the Australian dollar high-grade copper only the money companies I keep please keep an eye out for both sets of these figures on Wednesday We have the back of Canada a great decision and the consensus is and we're going to see a rate hike from 0.1 point 1.25 percent to 1.5 percent On Wednesday, micro focus a British company has first-class numbers coming out and on Friday We have second quarter earnings from JP Morgan city group and Wells Fargo So the major US banks kick off early season Take a quick look now on some of the popular markets starting off with the FTSE 100 Like I'll say your clinic in the markets are Hard today, and we are expecting higher open for US index futures As you can see here After a very good run between March and May you have seen a bit of a downward move in the FTSE 100 But we actually have been pushing higher again recently and notice how as markets been pushing higher Turning our attention to the Mac the indicator and Mac the histogram We can see there's a steady decline in negative momentum So the markets pushing higher the negative momentum is coming is coming to it is declining could come to an end We could see the market push continue to push on higher and if it does we could take off these levels here Which come into play at seven thousand seven hundred and if you go north seven thousand seven hundred The next area to keep an eye on four will be the mid-June high of seven thousand seven hundred ninety four And he moves to the downside may find some support in well this area here at seven thousand four hundred and eighty two Below that support make him into play at that this a line here at the one or two moving average Which comes into play at seven thousand four hundred and twenty two Take a look now at the euro market The dex We can see here that after a fairly sizable sell-off in In mid in mid-June to admit to late June We have seen a bit of a correction a bit of a bounce back in that in the dex We can see that this area here is active as a very decent area support 12123 this area here the markets been pushing higher We've seen a steady decrease in negative momentum as I should know swung to positive momentum So as markets pushing higher, we're starting to see signs of positive momentum increasing So The momentum is with the buyers and if you do continue to push on from here higher from here We could be looking at our getting this area here 12600 and notice how 12600 acts as both support and resistance in recent weeks If an area has acted as both support and resistance recently it makes all the more likely it will do it Do so again in the near future and he managed to take out 12600 We could be looking heading back up towards this red line here to the moving average which comes to play at 12,782 once again an act of support support resistance recently Therefore makes it more likely we can see it act as support resistance in the near term Move to the downside and the dax may find some support in around this area here a lot of consolidation just north of 12,000 to 250 12,300 that sort of area and if you drift south of south of there We could be looking heading back down towards this area here 12,123 Take a look now what's going on in in the rest of the Dow Jones So that Jones off see I had a fairly at a fairly negative and finished to To the month of June and also the early July But as you can see here that the market magic and hold north of 24,000 So more importantly imagine hold north of this trend line support here Which would which would commit to play and address it down to there in around 23,000 875 or 23,900 that's sort of an area So we've managed to hold above there now. We've actually managed to push higher push above The dirty moving average this red line here and think I managed to hold above the dirty moving average at 24,442 the likely is the likely is we could see the market continue to drive up from here and retest 25,000 I think I'll be on 25,000 we could be looking at our getting this area here They get at the mid-June high of 24,000 so 25,442 It's only if you see a size would break south of 24,000 could we be heading back down towards 20 23,900 or 23,875 this trend line here and if you go below that we could be looking heading back down towards the genuinely low of 23,128 Take a look now. What's been going on with the oil market? So Brent crude oil Has managed to after a fairly sizable sell-off in late June has managed to retake the fifthly moving average this blue line here Notice how it actually did act to support over a couple occasions recently and while we hold north of the fifthly moving average Which comes to play at 76.79 the likelihood is that we could see the oil market push higher from here And we can look at a look at track at the $80 a barrel or north of that up towards 80 spot 89 And then beyond that up towards 81 spot 53 And he moves to the downside if you do message to drop below 76.92 I could head back down towards 75 dollars a barrel as we go below 775 We could be like any back down towards 72 spot 38 Turning attention now to WTI WTI is obviously at the better run recently It's a create a new multi multi-year high only only a beginning of this month So WTI has been the open forward compared to Brent and a similar situation here is that it's in it's still remains in its Software trend. I've been a bit if you continue to push on higher from here We could be looking at retesting 75 and go beyond 75 dollars a barrel WTI We could be looking at the say 76 77 Maybe the next big cycle actually numbers to watch out for and he moves to the downside on WTI May funds and support in run this area which comes into play in runs 72 spots 79 or 72 spot 50 I thought if you have a size would break below that we could be letting any backup down towards this area here 70 spots spot 70 or or deed 70 dollars a barrel itself Take a look now cover the currency pairs starting off with the Euro dollar So the year has been losing ground versus US dollar for the move on since April Notice how it's managed to find finds the decent area support in run this area here Which comes to play at one spot 15 10 and we have been pushing higher here And in the last few sessions we managed to be getting some ground on the euro versus US dollar It's been a steady increase in positive momentum on the back the indicator So markets moving upwards the momentum is clearly with the buyers So we could we could see this positive move extend And if you do continue to push on higher from here We can look into targeting this this area here at one spot 1850. Sorry one spot 1851 that area there And if you go north of that, you could be like any backup towards 120 And he moves to the downside confines support coming to play this area here one spot 1510 I think I'll stop the one spot 1510 that would be that will be a Quite a bearish sign because we would have created a multi-month low then I mean we would looking We would look at heading back down towards the one 14 area To finish things up looking at the pound versus the west dollar It's a very similar chart in that pound has also been losing ground versus the US dollar since April But we have in recent sessions seen that see the pound push higher similar again The policy pushing higher recently we see the steady increase in positive momentum So we could see this this this bounce back continue if you do about push on higher from here We could be looking at our targeting the early June high of one spot 34 72 And if you go beyond that we could be looking targeting this red line here Which comes into play the dirty moving average which comes to play and one spot 35 86 And it was in the downside may find support in around the one of 32 spot 50 area I think I'll stop the back. We could be looking at our retesting the the June low of one spot 30 One spot 30 49 if you go south of there We could be looking any back down towards one spot 30 to figure itself. Well, that's all for me this week. Thank you very much