FX.co ★ Global macro overview for 21/10/2015

Global macro overview for 21/10/2015:

The equities from around the world had been trying to recover for the past month after global turmoil triggered by China in August when their policymakers decided to devalue the yuan by 2%. Since then, the moderate movements could be observed in the global equities with the SPY index (SP500 ETF) filling the last gap down yesterday. Moreover, China's third quarter GDP figures came out worse than expected (6.9% vs. 7.0%). This is why the latest highs from August can still be tested again if the recent gains will be hold by bulls.

The technical picture confirms the fundamental assumptions as the level of 203.84 had been hit yesterday. The index is still trading inside a wide neutral zone and as long as the demand zone holds, the test of the recent high is still possible.