Following the detention by Turkish authorities of a US consulate employee in Turkey last week, a tit-for-tat spat between the two nations has resulted in visa services between them being suspended. The US mission in Ankara added, ‘recent events have forced the United States government to reassess the commitment of government of Turkey to the security of US mission and personnel’. In early morning trading the lira lost 4 per cent against the greenback to 3.7694, the closest it’s been to January’s record low at 3.9407.
In Q2 2017 the Qatar economy grew by an annualised rate of just 0.6 per cent. Because of this new measures to boost the sanctions-hit nation were announced over the weekend. Rents in some sectors will be slashed by half in 2018 and 2019; building permits granted during a qualifying period will be rent-free for a year; Qatar Development Bank will not collect loans due for up to six months; all ministries must attempt to only procure locally.
DAX 30
Trading up for 8 consecutive working days and horribly overbought, no wonder it’s starting to run out of steam. Former German finance minister Schaeuble warns of new bubbles forming in an FT interview.
SHORT TERM TRADER: Square.
FTSE 100
Terribly overbought and stalling so far this morning at 7541, as was the case in June and August. More Brexit talks this week ahead of an EU leaders’ meeting on this 18-19th October.
SHORT TERM TRADER: New short at 7507; stop above 7600. Target 7320.
POSITION TAKER: Square.
S&P 500
Another index where gravitational pull has been banished. A Columbus Day holiday in the US and Canadian Thanksgiving mean not a lot will be happening in North American financial centres.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
A slightly bigger weekly drop than we had been used to set off some alarm bells. However, with a little luck long term trend line support will hold (though possibly imperfectly) as the MACD is still positive.
SHORT TERM TRADER: New small long at 1.3115; stop below 1.2850. Target 1.3400.
POSITION TAKER: Square.
EURO/US DOLLAR
Certainly looking precariously perched and immediate trend line support has clearly been broken, but then on the other hand the euro is no longer o0verbought following the tiny drift of the last fortnight.
SHORT TERM TRADER: Square and not sure at all what ought to be done. Long term I still prefer selling the US dollar against many major currencies.
POSITION TAKER: Square.
GOLD
The bounce from Friday’s low ought to be capped by immediate trend line resistance as momentum remains decidedly bearish. Slightly worried about the next phase in the value of the US dollar.
SHORT TERM TRADER: Short at 1291; stop above 1295; target 1245.
POSITION TAKER: Square.
