Trading Plan – Monday 18th May 2020: The week starts with solid risk-on sentiment as Covid restrictions lifted
Events and Calendar
Re-emergence of US/China war of words. Largely seen as Trump electioneering.
GBP battered by difficult Brexit talks, astonishing deficit, Bailey alluding to more QE and Broadbent hinting at negative interest rates.
RBNZ asks institutions to prepare for possibility of negative interest rates.
Almost exclusively indecisive.
Equities drop over the week, although remain in consolidation.
Oil stages a three-week rally from 18-year lows.
GOLD makes a new 8-year high.
Currencies: JPY makes a new 7-year high; GBP very weak; USD rises from new support level just below 3-year high; commodity currencies all turn down over the week.
T30, GBPUSD short, exited just before the market close, around +2% gain. Month of May now positive.
The week starts with positive sentiment as the easing of Covid-19 restrictions continues and there is no sign of any second wave of infections. I take a long GOLD trade at the Sunday open as resistance had been breached on Friday, the asset gapped up and moved up immediately on the open and there is significant market expectation that it will rise a lot further.
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