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Geo-political uncertainty increases market volatility

Geo-political uncertainty ramped up over the weekend. Potential risk factors surrounding the health and election prospect of incumbent US president Donald Trump dominated the headlines. Across all asset groups, bulls are factoring in that any bad news will be addressed by a further scaling up of fiscal and monetary policy. They haven’t been wrong on that since 2008, so betting against them now could be costly.

With increased ‘risk on’ has seen precious metals given up some ground. The short-term at least looks to favour the bulls, but medium and long-term uncertainty could still come in to play. The US election is now less than one month away.

S&P 500 – last weeks kiss of the Weekly 20 SMA it could have been another ‘higher high – higher low’ buying opportunity.

Source: ig.com

Instrument

Hourly

Daily

GBP/USD

1.2936

NEUTRAL

STRONG BUY

EUR/USD

1.1735

STRONG BUY

NEUTRAL

FTSE 100

5,949

STRONG BUY

STRONG SELL

S&P 500

3,321

STRONG SELL

NEUTRAL

Gold

1,893

STRONG SELL

STRONG SELL

Silver

23.87

BUY

NEUTRAL

Crude Oil WTI

38.26

STRONG BUY

STRONG SELL

Bitcoin

10,544

STRONG SELL

STRONG SELL

Our analysis is based on a comprehensive summary of market data. We use a range of metrics with weighting given to simple and exponential moving averages and key technical indicators.

 

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.