The US$ has come under some downside pressure late in the day as fears of a trade war grow, following on from Donald Trump’s comments. For the time being this appears set to continue in all the major pairs, although the dailies do point to further dollar strength in the days ahead.
Stocks are looking ugly although the volatility is high so, while preferring to be short, caution is needed when entering trades. Choosing the wrong level could easily see positions being squeezed out.
No trades today. There is substantial event risk over the weekend due to the Italian election which could easily see gapping occur on Monday, particularly in the Euro related pairs.