Ofcom asks the CMA to investigate Amazon and Microsoft

According to a report by the Financial Times, Ofcom the UK regulatory has asked the Competition and Markets Authority for an antitrust investigation into Microsoft’s (#MSFT) and Amazon’s (#AMZN) dominance over cloud computing. The potential investigation could potentially weigh on the stock price of both companies should they be found in violation of UK competition law, as it may lead to repercussions by the UK Legal system. On the other hand, should no evidence of alleged wrongdoings by the companies be presented, it may have no impact on either stock. However, we should note that at this point in time, the CMA has made no official announcement as to whether or not it would be investigating the aforementioned companies. In the commodities market, we note that OPEC+ during their meeting yesterday, re-iterated its commitment to maintaining its current production cuts. However, we note that concerns regard future demand for oil, may have weighed on the commodity. In today’s Asian session we note, Australia’s trade balance figure, which came in better than expected, could support the Aussie, as the economy appears to more resilient that what was expected by market analysts. In the US Equities markets we note the Citigroup (#C) according to a report by Reuters, is undergoing an enormous restructuring process, aimed at increasing the company’s revenue by focusing on its more profitable business areas. The potential move could support the company’s stock price, as it may become more profitable.

Technical Analysis:

USD/JPY appears to have tested support at the 148.40 (S1) before moving slightly higher, yet we still maintain our belief for a bearish outlook for the pair. Supporting our case for our bearish outlook, is the RSI indicator below our 4-Hour chart which currently registers a figure between 30 and 50, implying that there may be a bearish sentiment in the market. For our bearish outlook, to continue, we would like to see a clear break below the 148.40 (S1) and the 147.40 (S2) support levels, with the next possible target for the bears being the 146.20 (S3) support base. On the other hand, for a bullish outlook, we would like to see a clear break above the 149.30 (R1) resistance level, with the next possible target for the bulls being the 150.10 (R2) resistance ceiling. Lastly, for a neutral outlook, we would like to see the pair remaining confined between the 149.30 (R1) and the 148.40 (S1) resistance and support levels respectively.

WTICash appears to be moving in a downwards fashion, with the commodity breaking below support turned resistance at the 84.50 (R1) level. We maintain a bearish outlook for the commodity and supporting our case is the RSI Indicator below our 4-Hour chart which currently registers a figure near below 30, implying a strong bearish market sentiment. For our bearish outlook to continue, we would like to see a clear break below the 81.60 (S1) support level, with the next possible target for the bears being the 78.00 (S2) support base. On the other hand, for a bullish outlook we would like to see a clear break above the 84.50 (R1) resistance level, with the next possible target for the bulls being the 87.50 (R2) resistance ceiling. We would also like to note that the Bollinger bands have widened significantly, implying high market volatility.

その他の注目材料

Today in the European session, we note the release of Germany’s trade data for August, France’s industrial output for the same month as well as Germany’s and the UK’s construction PMI figures for September. On the monetary front, we note that ECB Governing Council member Kazimir and ECB Chief Economist Lane are scheduled to speak. In the American session, we note the release of the US International trade for August and the weekly initial jobless claims figure, while from Canada we get the trade data for August. On the monetary front, we note that Cleveland Fed President Mester, ECB Vice President De Guindos, Richmond Fed President Barkin, San Francisco Fed President Daly and Fed Vice Chair for Supervision Barr are scheduled to speak. During tomorrow’s Asian session, we note the release of Japan’s all household spending for August, while RBA is to release its financial stability review.