Brad Alexander
FX Large Limited
Over the weekend Donald Trump announced his pick for the US Treasury secretary, Scott Bessent, who is pro-tariff, pro-lower taxes, and a market-friendly professional.
The announcement of Bessent affected all the markets with the US indices opening with a gap at the opening of the futures market this morning.
If you are a gap trader, this looks interesting but keep an ear to the news.
Also, keep an eye on the technicals with the stochastic oscillator still showing bullish confluence but overbought.
The news made US FX pairs gap, as a weaker USD, as we can see here on GBPUSD.
If we look at higher time frames, like the 4-hour and the daily, we see an obvious downtrend.
However, if we look at a really long time frame like the weekly, we see price action reaching the lower trend line in an old uptrend.
Check all your USD pairs.
Along with higher equity prices and a weaker USD, bond yields also fell with the news.
The latter 2 occurrences, in theory, should have seen price action on gold rising.
Why the opposite?
Well, Israel and Lebanon may be closer to a peace treaty which is good news and good news usually causes the price of gold to fall.
That’s all for now.
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While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
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