Price Cycles Of Past & Future

Traditional Markets

As England advances in the World Cup, it seems the country has taken a step back on Brexit. 

Prime Minister Theresa May's plan hasn't been received as well as she would've liked. Her Foreign Secretary even likened the plan to a "polished turd," but it seems he is now behind it.

Unfortunately for May, some critical players did not get behind it, namely the Brexit Secretary David Davis and two of his associates.

With just 8 months until the March 2019 deadline, it's looking like there will be difficult times ahead.

The Pound Sterling is seemingly unphased by all of this. Not only did it open the week with a notable gap up (purple circle), but it has continued to climb throughout the morning.

In fact, the British Pound has been one of the best performing currencies so far this month as the US Dollar is seeing a bit of a pullback.

It will be interesting to see the Pound's reaction to the game on Wednesday night. So far, the games have certainly had an impact on the mood in London, which seems to be having a bigger impact on the markets than Brexit.

The blue circle on the GBP/USD chart above is the game between England and Colombia, the victory of which secured their position in the quarter-finals. 

The game against Sweden happened when the markets were closed for the weekend, which might explain the weekend gap mentioned above (purple circle).

US Signs of Recession

Watching the stock markets these last few months has been like watching a game of tennis, only instead of side to side, it's been more like up and down.

Ever since the big drop at the beginning of February, the Dow Jones has been rather random with cycles of about 1000 points in either direction but going nowhere fast.

Markets are moving upwards today, especially in Asia as the China50 scored 3.46% this morning. 

Meanwhile in the United States, one of the oldest indicators of economic instability is inching closer to a bad omen.

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Please note: All data, figures & graphs are valid as of July 9th. All trading carries risk. Only risk capital you can afford to lose.

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