GBP/USD: Bearish momentum has nearly evaporated completely and a break above 1.3700 will probably set off some short-covering. Chart/Levels from Analyst, Nicole Elliott – Investors Chronicle


GBP/USD SHORT TERM TRADER: Long at 1.3545; stop below 1.3400. Target 1.4100.

GBP/USD POSITION TAKER: Small long at 1.3565; stop below 1.3400. Target 1.4300.


Germany sputters
Economic growth slows

First quarter GDP in the Eurozone’s powerhouse slowed to 0.3 per cent quarter on quarter, equivalent to 1.6 per cent Y/Y, from 0.6 per cent and 2.3 per cent at the end of 2017. Better than many, agreed, but disappointing nevertheless. German statistics agency Destatis blamed it on the fact final government expenditure dropped for the first time in 5 years. Also, worth
noting that both exports and imports were lower than Q4.

US retail banks may have curbed their willingness to lend on sub-prime auto loans. Instead the biggest US banks have dramatically increased their loans to the non-bank financial sector – which specialises in sub-prime auto, mortgage and consumer loans. Latest data suggest this stands at $344billion, Wells Fargo the biggest with an estimated $81 billion. Simultaneously
latest Fitch Autoloan delinquency rates are running at almost 6 per cent, higher than the 2008-2009 peak at 5 per cent and the highest on record.

Financial Markets & Political Commentary



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