The dollar takes a break and is currently trading at a two week low on the back of Donald Trump’s comments last Friday about his unease with the dollar at these levels, the Federal Reserve and their monetary policy.
Added to renewed threats from the Chinese in relation to imposing more trade tariffs, global markets are trading lower. The Nikkei225 has closed about 300 points lower this morning whilst the Hang Seng is slightly weaker into the close and currently shows a loss of 7 points. The Nikkei225 is significantly weaker on news that the Bank of Japan will be scaling back its monetary stimulus.
Opening calls for the FTSE and DAX are also softer as they look to shed 50 and 45 points respectively at the open. BREXIT and Theresa May’s fragile control of the Conservative party remain a major concern for both the FTSE and sterling.
With a really slow week for economic data, trading may remain in tight ranges until Thursday when the ECB will announce their latest rate decision and Mario Draghi will shed more light on the immediate monetary policy of the ECB.
We will be looking for moves towards the limits of recent trading ranges before initiating trades this week. GOLD will likely remain the trade of choice
I have SOLD GOLD at 1230.50, stop at 1238, minimal risk