 Good morning and welcome to today's products and focus big news last night the Fed gave its clearest indication yet that in fact December could be the month for liftoff for interest rates in the US, which is a big shock to the market The equity market initially sold off only then to rally late to finish into the session and the US dollar has certainly gained momentum versus the sterling and destroyed the Euro last night with the Euro dollar now trading down at 109 the resistance was one spot 11 at one point So that gives you a bit of an idea as to the size and the magnitude of that move Dollar yen to spiked up by it beyond 121 spot 10 To only then drift down later on so good news for for equities I guess from a US perspective because you still have monetary easing in other parts of the world and You have the strength of the US economy driving everything on so If we have a look at the US 30 now and we add my my my tool on here We can see that we are only 3.13 percent away from breaking an all-time high on The US 30 3% away from an all-time high. We broke through 17 747 We're bang on that line at the moment next potential resistance is 18112 on that market very interesting times. So looking at the UK 100 massive bullish engulfing Cancel yesterday to close at the top end of his range and we've had an immediate reversal already this morning And we're trading at the bottom of the daily range Which is not that great 6415 will now be the potential support potential launch pad targeting 6589 as a next potential support Other technicals are okay. The MacD didn't cross over in the end. You can see the MacD histogram right here is still showing blue bars Maybe we might get an additional acceleration to the upside should the American markets keep going So looking at Japan 225 and this is the interesting one because you do have the Bank of Japan meeting tomorrow When they are going to decide if they are going to embark on a new process of monetary Policy IQ in Japan or not and now that the US has mentioned that they might raise rates That's going to be interesting because they are going to raise rates So dollar yen should be ticking up and if the yen then appreciates more that is maybe good for Japan Even better for Japan because they want to have a weak yen So it could be so they can export more make themselves more competitive blah blah blah So that's currently where we are 19104 is a potential resistance that looks to be holding so far today. We closed top-down the range yesterday reversed this morning Almost got a bullish crossover death at Golden Cross on the moving averages other technicals are still Neutral to overbought if you look at the slow stochastic The MacD histogram is slowly tapering off perhaps indicative of slowing momentum Looking at dollar yen You can see the bullish engulfing pattern yesterday a reversal this morning at bounced off 120 spot 55 Any move higher will target 121 spot 87 should the good times continue to roll However, it was West Texas crude yesterday that had the biggest rally This is probably about a 7% move hugely bullish engulfing pattern mainly in the back of Was it higher inventories because obviously it was Wednesday So crude oil Wednesday But that's not just that there's people being short for a couple of for a couple of weeks right here And what we can see is potentially a huge amount of short covering as a lot of traders decided to get out of their short West Texas positions and this is a classic short squeeze formation to have and you had a hammer formation on the candlestick charts there But 45 85 looks to be a stringent resistance and even though we closed at the top end of our range We failed to break through it this morning to be honest This looks like a very interesting kind of retracement and Opportunity right here is up for the clients or you guys are home to decide if you think 45 spot 85 is Gonna remain a resistance level in which case you might retarget 42 or if you think 45 spot 85 is a Resistance that is going to be broken And certainly looking at the other technical indicators There isn't any clear bullish momentum generated after just one candle from a technical perspective This is a hammer. This is a bullish engulfing pattern. So You guys at home will have to decide in the backdrop of a stronger US dollar What's gonna happen with West Texas crude now that the US apparently has a green light for the strength of that economy? so Moving on to the yellow metal gold It obviously doesn't like higher interest rates very very strong negative candle there on gold It seems to be that gold could be an interesting play For traders who think that December will yield a rate increase a huge number of traders would bet against that because people Have been very bearish on US rates now for a little while and The Fed has surprised last night with its comments But how much of that is political and how much of that is is actually genuine? Strength because a macro data coming out of the US hasn't exactly been that Exciting it helps you get it home to decide but certainly from a technical perspective This is a really ugly candle that we had yesterday. We've bounced off 1157 any further weakness opens up 1138 Right, let's finish up with GBP USD and Euro dollar. You can see the chart from Euro dollar looks pretty horrible right now And We had a perfect retracement to one spot 11 yesterday dumped over 200 points We're floating a limbo today one spot zero seven eighty six is an exponential support Technical still show there's further room for maneuver as a Mac the histogram gets larger showing an increase in negative momentum The RSI is just going into over sole territory But only just and the are slow stochastic still has room to go So we're in the middle of two ranges now, so it'll be very interesting to see where we go today But certainly this is a very strong technical break below one spot 11 But be careful of any retracement out there. I come a day wise we still have today US GDP and that's going to be important today employment. That's going to be important today And you've even got German CPI. You don't forget about that. You're trading Euro dollar as well So a fair amount of macro data events to keep you Interested cable as well drifting lower as that dollar strength comes in rather than sterling weakness But one spot 51 85 is the next logical potential support level Bearish cross on the MACD. We had sell signal in slow stochastic a number of sessions ago And the RSI is neutral But certainly if we are in the backdrop of a stronger US dollar and we get a good GDP figure today There could be further moves in the dollar if GDP comes out as a big miss That's when things get a little bit more interesting because the Fed is not going to raise rates if the macro data is absolutely rubbish so more important than ever Will the US macro data releases match up to the Fed's ambition to raise rates in December or Well, we have to wait until early early 2016 Well, we're not going to find out tomorrow, but by tomorrow you'll know the GDP figures to join me again then to find out what happened next