Brad Alexander
FX Large Limited
The big news today is that Joe Biden has dropped out of the race for the US presidency and, good or bad, this causes uncertainty and investors hate this.
Therefore, because of this uncertainty, we see further falls in the US Indices.
Looking at the daily chart on the Dow Jones Industrial Average we see just how severe the recent rise and fall of the stock markets.
But, is it time to buy the dip?
Also, after last week’s weirdly positive news after the Republican National Conference, the markets saw a stronger showing by Trump, making USD stronger.
Watch this as we may see USD moving the other way if Kamala Harris and the Democrats poll stronger.
We see a tug-of-war between USD and CHF so, if we see a rise to this upper trend line we may have a short trade on USDCHF.
CAD is generally weaker and we can see why as the market is pricing in a rate cut on Wednesday, but, we can expect volatility.
For example, if we get a pullback against the trend, we may have opportunities to trade WITH the trend.
Another cause of CAD weakness is the falling price of WTI and, if we believe the MACD indicator, the bearish trend could continue.
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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Editors’ Picks
EUR/USD stays in daily range slightly below 1.0900
EUR/USD continues to move up and down in a narrow band slightly below 1.0900 in the second half of the day on Monday. The modest improvement seen in risk mood makes it difficult for the US Dollar to find demand and helps the pair stay in range.
GBP/USD treads water above 1.2900 amid risk recovery
GBP/USD is keeping its range play intact above 1.2900 in the American session on Monday. The positive shift seen in risk sentiment doesn't allow the US Dollar to gather strength and helps the pair hold its ground ahead of this week's key data releases.
Gold struggles to hold above $2,400
Gold loses its traction and trades in negative territory below $2,400 after suffering large losses in the second half of the previous week. The benchmark 10-year US Treasury bond yield holds above 4.2% and risk flows return to markets, not allowing XAU/USD to rebound.
Solana could cross $200 if these three conditions are met
Solana corrects lower at around $180 and halts its rally towards the psychologically important $200 level early on Monday. The Ethereum competitor has noted a consistent increase in the number of active and new addresses in its network throughout July.
Election volatility and tech earnings take centre stage
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The US Dollar managed to end the week higher as Trump Trades ensued. Safe-havens CHF and JPY were also higher while activity currencies such as NOK and NZD underperformed.