The recession has started? TR#321

The US China trade war has just gone up a notch or two and we could be looking at the start of a world recession. The sequence of events went like this. Wednesday The FED cut rates by 25 basis points, result the dollar index goes long. Why? Because they were dovish in the statement and the market was expecting more cuts. Friday's employment figures weren't good so the dollar started to pull back then Trump announces more tariffs on China. The dollar accelerates down. China responds by devaluing the yuan to off set the tariffs. Result the stock markets start to correct. We are now in the risk off period that I've been calling for months. So where are the opportunities? Safe Havens long, (Yen, Swiss Franc, Gold ,Silver) Stocks short. If the market predicts further fed rate cuts as a response to all of this then we could see the dollar falling.

This is not investment advice

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Steve Nixon
logicfxtrading.com