Yesterday the Trump administration confirmed that no country, not even China, was deliberately trying to gain a trade advantage by deliberately weakening their currency. Since 1988 the US Treasury has been mandated to carry out a 6-monthly review on the subject which might lead to trade sanctions, with Steven Mnuchin adding, ‘’Treasury takes seriously any potentially unfair currency practices’’. Nine nations are on the monitoring list: China, Germany, Ireland, Italy, Japan, South Korea, Malaysia, Singapore and Vietnam.
The Financial Times reports that the UK’s National Crime Agency has obtained a second Unexplained Wealth Order to investigate how three residential properties worth a total £80 million were paid for. Registered abroad, the owner is a ‘politically exposed’ person – meaning he or she is a politician or state official, or a family member of one. The first UWO looked into properties worth £ 22 million and Harrods shopping bills belonging to Zamira Hajiyeva, wife of an Azerbaijani banker jailed for embezzlement.
DAX 30
Breaking trend line support and dipping below the neckline of the huge head and shoulders top.
SHORT TERM TRADER: Will probably re-sell on a daily close below 11950.
POSITION TAKER: Square.
FTSE 100
Retesting last week’s lows and worrying news from stockbroker A J Bell that just 10 FTSE 100 companies account for the bulk of dividends paid out and of these, just 5 are the biggest contributors.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 7275; stop above 7350. Target 6875.
S&P 500
Momentum turned bearish on yesterday’s close, the weakest so far this month. Selling off again today on more news and rumours about the Sino-US trade disputes.
SHORT TERM TRADER: Short at 2880; stop above 2880. Target 2720.
POSITION TAKER: Short at 2866; stop above 2900. Target 2740.
BRITISH POUND/US DOLLAR
Still oversold as we slink along close to last year’s lows, in turn at the lower end of the post-referendum range.
SHORT TERM TRADER: Small long at 1.2675; stop well below 1.2600. Target 1.2925.
POSITION TAKER: Square.
EURO/US DOLLAR
The MACD almost set to turn bearish as the choice for top jobs at the European Commission to be decided in a month’s time.
SHORT TERM TRADER: Long at 1.1195; stop below 1.1100. Target 1.1400.
POSITION TAKER: Square.
GOLD
Momentum is barely bearish with trend line support holding again yesterday. A close below here on Friday should add to downside pressure.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
