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Tariffs On/Tariffs Off: Markets Still Falling. CHF and JPY Stronger as Safe Havens.

Global Market Uncertainty on All Fronts!

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In today’s GCI Market Outlook let’s take a look at Forex Trading on Gold, XAUUSD, USDCHF, USDJPY, the FTSE100, DJIA, the S&P500, and the NASDAQ.

Yes! Today’s word is “Uncertainty.”

We have discussed this many times. Traders and investors can react to good news or bad news, but uncertainty is poison for the markets.

On the 19th of February, the markets started downward as we can see from the major US indices.

The fact that the White House paused some of the tariffs yesterday was no consolation for investors as the sell-off continues.

I will also repeat a long-standing tenet in trading: technical analysis takes a back seat to fundamental events in time like this.

We saw this during the first Trump administration with the on/off US-China trade wars.

This time, it is far worse as the rest of the planet has been dragged into the uncertainty.

We can see key levels of support on the S&P 500, the DJIA, and the NASDAQ.

But in all honesty, we need to see some positive news from investors before we follow any reverse to the upside.

The litmus test may come today with the US Non-Farm payrolls.

If traders and investors pay attention to this, we will know. If not, we may have to wait until the tariff stories are resolved.

Also, Jerome Powell will be speaking today so let’s see if we can pick up any clues. Probably not.

But, if we are seeing a sell-off, where is the money going?

The USD index is falling along with the stock market.

We see price action on Gold rising from the first day of the month.

And we see USDJPY down with more money flowing toward the Yen.

The same with USDCHF as the Yen and Swiss franc may be coming back as safe havens.

Anyway, be careful out there and we will see you again on Monday.

That’s all for now.

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