There is a risk-off mood among market participants. Asian indices were under pressure, as was the case with US futures.
We are again in the midst of trade rhetoric between the US and China, with the two countries getting closer to signing Phase 1. However, for this to happen, the US must remove tariffs that came into force on September 1. According to recent rumors, the White House has been cruelly divided over whether or not this should happen. The fact that China is demanding tariff reversals really shows the extent to which there is no loss of confidence between the two countries. For this, even if it comes to Phase 1 signature, it will be more of a commercial "truce" rather than a "deal"
What does this mean for us and cash flows? Simply put, headlines will be traded again. In such a situation, not forgetting that it is Friday, price action charts will have less effect, and movements can quickly be reversed when commented from the US or China. See the change, press the trigger, then exit the trade and try again.
With all the lack of confidence in the markets, positioning and valuation remain one of the main trading topics. I expect support from AUD, NOK, and CAD against EUR, JPY and CHF. It's a bit of a pro-risk approach, but it also captures the mini-reflationary topic that has begun to emerge recently.
This scenario also supports the basic view of downward movement at EURNOK and the retention of short exposures to EUR, CHF against AUD, NZD.
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.