A summary of longer term trends and signals that flag any change of market sentiment. In this month’s edition
Bonds: After formation of trend reversal signals, the initial targets of 20mth ma have been achieved. Expect continuation of medium term trends towards lower yields. Curve range trading, but signals of a risk to higher swap spreads
FX: USD Index range trading. USDCNH at key levels (will it trade lower?). EURCHF remains in strong downtrend
Equity: Continued strong price momentum for indices, but with some notable underperformers. Chinese stocks the standout with new multi-year low printed in January.
Commodities: Bullish signals for Gold in Eur. Potential bullish signal (but NOT yet confirmed) for Agricultural Index, whilst oil in wedge.