In a previous article we detailed the beginning stage of the United Auto Workers (UAW) strike.
UAW President Shawn Fain said yesterday that if substantial progress has not been made with the Big Three automakers by noon ET Friday, the union is prepared to call for additional strikes. Currently, there are close to 13,000 members on strike, with the UAW prepared to call on more workers to walk off their jobs.
Current strike action is costing the Big Three close to $15 million per day.
The effects of the strike are starting to be felt, with FXCM's US Automobiles basket starting to show signs of pressure. The US.AUTO basket declined by 2.39% yesterday. The hourly stochastic has dropped below 20 (green rectangle). The longer it maintains this position, the greater the pressure on US.AUTO in the short-term.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.