 Good afternoon and welcome to the weekly market update with me, David Madden. Today's date is Monday the 17th of August 2020 and the time has just gone 12-12 for the summertime and it's been a fairly quiet start to the European trading session even though we've seen volatility is fairly low but we are seeing modest gains being shown across European stock markets even though there isn't a whole lot to be optimistic about. It's the same old stories. The coronavirus crisis is still very much at the forefront of traders minds. Sadly we're seeing some countries in Europe and Asia either reimpose stricter restrictions or at the very least express concerns about their respective health crisis. US-China relations continue to be defrosty. The trade talks that were supposed to go ahead were cancelled. This is going to add to the kind of sour relationship between the two largest economies in the world. On top of that, speaking of the US and politics there is still no deal reached between the Republicans and the Democrats in relation to having a stimulus package. So these are all the kind of major topics and themes of the week of the session. Like I said you know we are still pushing a small bit higher despite the fact that there isn't a whole lot to be cheery about. What I'll do is I'll start off by looking at the week ahead article which can be found on our website cmcmarkers.com under insights and you go to news and analysis. A number of companies are posting their figures tomorrow. We've quoted numbers out from Walmart, Home Depot, Nvidia. We first have numbers from person in the home builder. On Wednesday we have the minutes from the latest Fed meeting. On Thursday we have the closely watched US jobless claims. The city world were supposed to report their numbers this week but they pushed them back until late September. We have a third quarter update from Deer & Co on Friday. Also on Friday we have UK public finances. We'll see what the borrowing of the British government has now arrived at. We also have an update from the UK in terms of retail sales. And lastly we have the flash PMI reports for France, Germany and the UK. So that's going to give an indication of manufacturing and service reports from some of the largest economies in Europe. I'll start off by taking a look at the FTSE 200. For those of you who tune in regularly it'll be to these videos. It'll be the usual rundown. I'll cover a few of the big industries. I'll cover a couple of big currency pairs. And then I'll take a look at a couple of commodities. So the wider upward trend for the last few months remains intact. You know we're talking that the lows for March now remains intact. But notice how in the last few weeks the highs of July failed to take out the highs of June. The lows in July took out the lows in June. And then we had a rally in the middle of August which the rally in August didn't really, didn't didn't retest the highs of July. So we're seeing to be a bit range bound. And if anything the culture below the fifth of the moving average is blue line here. It seems to be a slight bias to the downside. And should we remain below the fifth of the moving average, we could see further losses from here. It should not be the case. We can head back down towards the psychology important 6,000 Merck. And if you go below that, we can be looking at retesting the lows of the lows of late July into early August. And they come into play in around 5,852. And if you go below that, the kind of 5,800 will be the next big number to watch out for. But if you do manage to press on higher from here, and if you take out the highs of August, we could be looking at retesting this zone here in around 3,443,000 sorry apologies, 6,340 this area here. They're there about active resistance and number of occasions in the past. So it's likely to be a significant level if you get back up there again. That's what's going on on the FTSE. I take a look at what's going on over in Germany. So as you can see here on the DAX solid upper trend for the last few months, similar to it, you know, what's a bit different between the DAX and the FTSE 100 is the lows of late of late July didn't really actually take out the lows of June. So we're still in the kind of upper upper trend, even more so on the DAX. Fair enough, the highs of August have yet to take out the highs of July, but we're still in the upper trend. We're comfortably above this blue line here, the fifthly moving average. And while we continue to hold above that, it's likely we could see the wider uptrend continue. If you press on higher from here, we could be looking at targeting 13,000 is a big psychological number. Should we go beyond that, we could then be looking at retesting the highs of July. And if you go beyond that, we could then be looking at heading back up to levels last seen in February. I moved to the downside might find some support from this blue line here, the fifthly moving average. And that comes to the play just north of 12,600. And if you go below that, we could be heading back down towards the lows of early August in around there. There are about 12,500. And if you have a, you know, quite a large move to the downside, we could even head back down towards the lows of late July. This blue red line here, the turning moving average acted nicely as support back then. That comes in the play just north of 12,200. And if a metric has been important in the past, it makes it more likely it'll be important in the future, although there are no guarantees. Take a look now what's going on. The Dow Jones. The Dow Jones is in pretty good shape. To be honest, I think it's been quite boring. If you look at the range, the last few sessions have been fairly low, it's been pretty much range bound, but the wider upward trend over the last few months is very much in play. If you press on higher from here, we could be looking at retesting the highs of last week. And that's in around 28,155. Also keep on this level here, 28,164. Coming back from the lows of late January. And of course, if you take off this level here, the highs of August, we could then be looking at targeting back up to levels last seen in late January, just as a kind of crisis was really taken hold in the US. Any moves to the downside on the on the Dow Jones could find some support in this zone here in around 27,633. We have been quite, you know, we have been short in a tight range last few months, last few weeks rather. So if we do break below that, we could be heading back down toward this zone here down around 27,000. We can see that there there are about active support at the beginning of the month. And there are a few occasions in July when well just north of 27,000 active at resistance. Turning our attention to the strongest index of the bunch, the S&P 500, which is not too far away from its all time high, which is incredible if you think about it, given what's going on with the US economy. But nonetheless, you know, even though there isn't a deal that has not been struck between the US and the Democrats in relation to a stimulus package, some people, you know, some tears have a view out there that some sort of an agreement will be reached at some point. So the S&P 500 continues to be in a strong upper trend. If you press on higher from here, we could be looking at retesting the highs, the all time highs that are posted in mid February. And if you go beyond that, the next big kind of big number to look out for will be 3,400. Any pollbacks could find support back down toward this zone here down around 3,326. And if you go below that, we could be looking at any back down toward this area here in around, in well, in around 3,300 itself. And then below that down toward this zone here in around 3,280. You know, buying on the dip is clearly being a popular strategy the last few months. So if we do see a pollback that we could see some fresh buyers enter the fold. That concludes the indices section. I'll start off now on the currency starting up at Eurodollar. So is the Eurodollar here? It's been a nice upward trend that the last few weeks been in a very positive trend recently. Only in early, only a while ago, we were hit, the Eurodollar hit its highest level in over two years. So it's in a strong upward trend. We traded at its side range bound the last few sessions, but we're still nonetheless in the upward trend. If you press on higher from here, we could be looking at retesting the early, the early August highs in around here, just what comes into play north of 119 in around 11916 there, thereabouts. And if you go beyond that, you know, the kind of psychology important one spot 20 will be the next level to keep an eye out on. Any move to the downside could find support in on the recent lows. Because of the lowest low of August has been in around one spot 16, 96, this area here, but we can see just north of that metric. There's a few occasions that that area well above that mark acted as support. If you go over all that down towards one spot 16 could act as support as well. And it's only really if you prefer a large pullback, could we head potentially back towards this blue line here, the fifth movie average, that's quite a way away. Notice how it acted nicely as support back in May. So if you have a decent size support, decent size pullback, we could be heading back down towards that level. The pound is also in pretty good shape given the weakness in the US dollar. So we can see here, it wasn't that long ago, the pond was at its highest level since early, early March. So multi month highs have been achieved not too long ago, even though we've kind of had a pullback and we kind of, we kind of rebounded it up in the pullback. We're still very much in the wider upward trend of the last few months. So if you press on higher from here, we first could be re testing the highs of early August. And if you go beyond that, we could be looking at heading towards you kind of 132. And if you go beyond 132, we could be looking at targeting this metric here one spot 32, 84, the highs of late December. Any moves, any pullbacks in the pound versus your daughter might find support from this zone here in around 130. It's kind of a big number. We're currently at one spot 30, 78, 79. And of course, if you imagine you have a decent move below 130, we could be looking at heading back all day down towards kind of 128, big consolidation for the 120 area there. It also acted as a resistance. Well, just north of the resistance in early June. And if you go below that, we could be looking at heading towards this, this area here where the red line, the turn to moving average kind of runs into, runs into the 50 moving average. So common important metrics converging on each other. And that comes in the play one at one spot 2712. Take a look now what's going on on the gold market gold and obviously a lot of volatility recently. At the beginning of the month, an all time high had a major pullback major move to the downside last week, but note the the long wick on this candle here on when to the 12th denotes indecision. And what do you know? The market has been recovering somewhat since then it's only claw back a portion of the ground at last. But nonetheless, why we can hold above the 1900 mark, it's likely we could see the wider upper trend continue. Should that be the case? 2000 is a big psychological number. If we go beyond 2000, we can then be looking at retesting the high, the recent highs, which are posted earlier this month. If we do have a move to the downside, if you go below 1900, this this every you know, some traders will be keeping an eye off of this area in at once at 1863, the recent lows here for money from last week. And if you go below that, we could be like heading down towards just below it, the 50 moving average, this blue line here in at one spot, sorry, 1844. Notice how it acted nicely as support. Back in the middle of middle June, like I said before, of a metric has been important in the past, it makes it more likely it'll be of importance in the future, although there are no guarantees. And lastly, I take a look at Brent crude oil, the October contract. To be honest, it's been fairly boring the oil market recently. It's tied in with the kind of perception about the global economy. It's good, good barometer for how, you know, economies are reopening, so potential for increased demand. But on the flip side, you know, if economies are going to be re closing, that could occur potential demand. So the last few sessions, it's been fairly range bound, but the wider upward trend is the very much in play. If we do press on higher from here, we could be like heading up towards 46 bucks, or just north of that, that the recent highs in a 46 by 23. And if you go beyond that, we could be looking at targeting the lows of early March in at once 46 spot 67. Any new to the downside, you can find support from the zone here in around 44 spot 24. And the move below that could take us back down towards this blue line here, the 50 day moving average, which comes into play pretty much just right on 43 bucks. That's all from this week. Thank you for listening. Stay safe and have a good training week.