The bullish market sentiment could persist for another day driving the major equities future indexes of US higher with absence of the US markets because of the presidency day.
After forming double bottom at 1804, SP-MAR16 could bounce up to surpass 1877.50 which stopped it last Wednesday to be traded now close to 1890.
While WTI could extend its rebound, after forming a bottom at $26.05 last Thursday to find CL Mar. 16 trading above $30 right now ahead of Saudi and Russian Oil Ministers talks today in Doha.
This improving of the risk appetite could place the gold again below $1200 psychological level, after reaching $1263 per ounce, while the demand for loading risky assets drove USDJPY up to be traded near 114.80, after finding a bottom last Thursday at 110.96.
USD could be boosted across the broad dragging EURUSD down to be traded now near 1.1150, after the ECB president Draghi highlighted yesterday the banking system resilience against shocks after the credit crisis in his speech to the European Parliament
Following the last ECB meeting on last Jan . 21, Draghi hinted that "The ECB may reconsider its policy stance in March amid a deteriorating economic outlook and turmoil in global markets".
He said yesterday too that the ECB could employ next meeting on Mar. 10 a variety of instruments, if the policy makers have seen that more stimulus measures are needed for stimulating the economy which has grown by 0.3% quarterly in the last quarter and the third quarter of last year and also for raising the inflation which has been up by only 0.4% yearly in January, while the ECB's target is below but close to 2%.
God willing the main focusing in the Forex market today will be on the release of US inflation figures over the producing level and the consuming level.
UK CPI is expected to show rising in January by 0.3% yearly, after increasing by 0.25 in December was the highest last year because of the global economic slowdown and the energy prices slide.
The cable is now standing below its daily SMA50, after facing resistance at 1.4666 halted its rebound from 1.4078.
After dipping down to 1.4349 on Feb. 8, The cable returned to be traded below its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 1.4630 in its seventh day in a row of being above the trading rate.
The cable daily RSI-14 is now in the neutral territory reading 47.163 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in the neutral area reading 41.976 with its signal line which is reading now 49.888 to show balanced situation meanwhile.
Important levels: Daily SMA50 @ 1.4614, Daily SMA100 @ 1.4928 and Daily SMA200 @ 1.5223
Have a good day
Global Market Strategist
Walid Salah El Din
Mob: +20 12 2465 9143