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Summertime chop

My recommendation to short EURUSD and GBPUSD worked out nicely yesterday. Which is a lot more than can be said of my stance on the indices. Having backed off my bearish view on the DAX, the German market fell, while the FTSE’s brief rally came to naught, also contrary to what I was expecting. I guess the sensible thing to do in these conditions would be to focus more on the currencies and forget about stocks. At least there are clear trends in EURUSD and GBPUSD. I also reckon gold will join them by declining shortly. As ever, though, I would wait for the move to begin before trading.

Click here for the PDF of today's European Outlook.