FXCM’s US.AUTO Basket Under Pressure as UAW Strike Continues

  • US.auto
    (${instrument.percentChange}%)


FXCM's US.AUTO basket is under pressure as the UAW strike continues. The basket has dropped into its bearish channel between the lower blue and red bands and the RSI has dipped below 50 (green rectangle). The longer the RSI remains below 50, the more pressure the basket will be under.

The strike has been ongoing since 15 September, with little progress over the last several days.

General Motors (GM.us) will report its Q3 earnings on 24 October, and Ford Motor (F.us) on Thursday, 26 October. The earnings calls will be listened to carefully for any adjustments the companies may make due to the strike e.g., reduced capital expenditure.

On Friday, Stellantis N.V. (STLA.us) announced that "As a consequence of the strike action at the Toledo Assembly Complex (TAC), Stellantis has announced temporary layoffs for an additional 700 employees from the Kokomo (Indiana) Transmission and Kokomo (Indiana) Casting Plants, effective Oct. 13. In total, the Company now has 1,340 employees on temporary layoff across three states. These plants have reached maximum inventory levels of the parts or components they supply for the Jeep Wrangler or Jeep Gladiator. Stellantis continues to closely monitor the impact of the UAW strike action on our manufacturing operations."

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Russell Shor

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.

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