GBPUSD..just as we had hoped, cable rallied from the top of the right- angled triangle. Chart & Levels from Nicole Elliott – Investors Chronicle.

 

GBPUSD SHORT TERM TRADER: Small long at 1.3835; stop below 1.3880. Target 1.4100.

GBPUSD POSITION TAKER: Small long at 1.3775; stop below 1.3880. Target 1.4250.

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Tech’s terrible day
Billions wiped off

Unsurprisingly given the news, Facebook’s shares at one point yesterday had lost 7 per cent. Over in Arizona a driverless car being road-tested by Uber killed a pedestrian on Sunday; their shares were down too.

FANGS generally got caught up in the turmoil and the NASDAQ index closed  down 1.84 per cent from Friday’s close. Not to be outdone the FTSE 100 was off 1.69 per cent because of a strengthening pound, and despite agreement on Brexit transition period and terms.

Subtle signs of increased pressure are emerging both in the money market and in sovereign bond yields. The spread between 3-month Libor and the overnight interest rate swap is now over 50 basis points, the biggest difference between what banks have to pay for money and where the central bank’s lending rate lies since 2012. Yields on many EU sovereign bonds are
lower than they have been in over 12 months. And yield curves in the UK and US are at their flattest in a decade or so.

Financial & Political Commentary

 

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