With sweeping new powers, and after sacking something like 18,000 civil servants days ago, Turkish President and supreme leader Recep Tayyip Erdogan gave the top ministerial jobs to his son-in-law, Berat Albayrak - who entered parliament in 2015. Sworn in yesterday for a second term under an amended constitution, Erdogan has promised to be hands on with monetary policy, favouring keeping interest rates as low as possible. Simultaneously, by government decree, he abolished the five-year term of the central bank governor and his or her ability to have a say on members of his rate-setting committee. The lira did not react well.
From today the UK’s Office for National Statistics will update GDP data monthly. In order to make them more timely, and using fewer estimates, today we’ll see May data and on a rolling three-month basis data to the end of May 2018.
DAX 30
Struggling this morning at the 12630 area, as we did late April.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
The MACD is struggling to turn bullish despite the blip above the top of the recent channel. With Boris Johnson’s resignation yesterday, this means PM May has lost 8 cabinet ministers in the last year.
SHORT TERM TRADER: Short at a couple of levels; stop above well 7710. Target 7400.
POSITION TAKER: Small short at 7799; stop well above 7800. First target 7400, then 7100.
S&P 500
Blipping just above June’s high this morning following President Trump’s choice of Brett Kavanaugh as his choice for the US Supreme Court.
SHORT TERM TRADER: New tiny short at 2787; stop above 2875. Target 2590.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Struggling with trend line resistance as bullish momentum really isn’t up to much.
SHORT TERM TRADER: Small position at 1.3230; stop below 1.3070. Target 1.3400, maybe 1.3550.
POSITION TAKER: Square.
EURO/US DOLLAR
Frozen in space and time.
SHORT TERM TRADER: Long at 1.1655; stop below 1.1500. First target 1.1850.
POSITION TAKER: Square.
GOLD
A little shooting star candle yesterday just under first Fibonacci retracement resistance has kept momentum bearish.
SHORT TERM TRADER: Still looking to re-sell close to 1280, but after yesterday this might prove over-optimistic.
POSITION TAKER: Square.
