Stubborn USD Shorts and Trade

Stubborn USD Shorts and Trade

While The Iran deal and North Korea developments seem to be the key focus these days in the background the trade talks continue in the background and will be an important driver of market expectations going forward.  Mexico, Canada and the U.S. are in for a long period of discussions.  The U.S. and Mexico are struggling with Automotive rules of origin.  Mexico and Canada have their own issues as well.  Wilbur Ross, Commerce Secretary for the U.S. ,has said if there is no real progress soon, that it will  there may not be much progress the rest of 2018.  Meanwhile E.U is working with the U.S. to set an import level for steel at 100 percent of current levels.  This would be a win for Europeans as they have no plans to increase export to the U.S. and a win for Trump as he can boast of having put in place a quota.  Win, Win and nothing changed.  This could be a trend.  It is also encouraging that China and the U.S. are still willing to find solutions,  more so the signal affect that negotiation and compromise are possible between the 2 largest global powers, than the economic consequences of tariffs on trade.

The link attached is from Ole Hansen, commodities analyst at Saxo bank and is an interesting piece on the USD move we are seeing.  We were stopped out on our trailing take profit order last night, but we see further upside and are looking at opportunities to play the next leg up.

https://www.home.saxo/insights/content-hub/articles/2018/05/07/cot-fx?mod=djemDailyShot&mod=djemDailyShot

Position Update:

We were taken out of our long DXM8 position that we entered on 23/4 at 90.55  closed at 92.80

We entered a short EURNOK position yesterday  entered on 9/5 at 9.5980  target 9.40  stop 9.7250

TickerDate OpenedEntry PriceStopTarget PriceCurrent Price
Long XAUUSD(Gold)26/4131712801365 and 14001309.50
Short EURNOK9/59.59809.72509.409.55667

Visit our Position Tracker to look at all of our realized trades: http://www.mintermarkets.com/position-tracker/

– Mark W

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