Video

Playlist

Show less
3:16
Oil looks bearish: O'Hare
Steve O'Hare - First 4 Trading
Thursday at 7:47 GMT
1:15
Buying a dip on USDJPY: Lambert
Clive Lambert - FuturesTechs
Wednesday at 7:24 GMT
2:29
Why I’m selling EURGBP: Coleman
Ian Coleman - First 4 Trading
Tuesday at 6:59 GMT
1:17
Why I'm looking to short EURJPY: Lambert
Clive Lambert - FuturesTechs
11 August 2017 at 7:23 GMT
59:23
OptionsLab: SPX and RUT Index Option Spread Trading
Georgio Stoev
10 August 2017 at 11:09 GMT
2:05
Gold looks shiny: O'Hare
Steve O'Hare - First 4 Trading
10 August 2017 at 7:20 GMT
Video / Friday at 9:03 GMT

From the Floor: More risk ahead with White House 'rudderless'

#SaxoStrats
  • • Equity markets hit hard by US political uncertainty
  • • Bannon seems to be getting upper hand in White House over globalists: Jakobsen
  • • More risk lies ahead: Jakobsen
  • • JPY at centre of attention
  • • Gold up, testing key $1,295/oz level

Saxo Strats banner
 By John Acher

Equity markets have been hit hard by political turmoil in Washington where the nationalist Bannon camp appears to have at least temporarily got the upper hand in the White House over the globalists, says Saxo Bank's chief economist Steen Jakobsen.

Rumours are swirling about more possible firings of members of the Trump team, including that Trump's economic adviser Gary Cohn -- a globalist -- could be removed. The speculation about Cohn contributed to rattling the US stock market and the US dollar on Thursday.

The Nasdaq dropped 1.9% and the VIX volatility index jumped 3.8% on Thursday amid the heightened uncertainty about the Trump administration.

Jakobsen says that for now the Trump administration appears "rudderless" and that the political uncertainty will persist. "The Trump situation is becoming worse and worse."

"There were big hopes that the general, John Kelly, would re-calibrate the White House. But it clearly hasn’t changed anything," Jakobsen says.

"The administration is in dire straits," he says. 

"Bannon has the upper hand right now despite all the rumours about him being thrown out," Jakobsen says, adding that Trump's "Twitter storm" on Thursday was "all Bannon."

”Don’t be surprised if we see some of the globalists resign over the next two or three weeks," Jakobsen adds.

Amid the uncertainty, safe-haven gold is up, testing key resistance at the $1,295/oz level.

Saxo Bank's FX strategy chief John J Hardy says that markets were already at risk of a selloff before the latest Trump turmoil, and that risk has only grown.

"All the focus is on risk-on, risk-off," says Hardy, noting the centre of attention is the Japanese yen.

White House under cloudy skies
 The 'rudderless' White House. Photo: Shutterstock


John Acher is a consulting editor at TradingFloor.

2d
Market Predator Market Predator
Is there good soul to be able to explain super tight Volume at Gold? Thanks, Mr. Ole Hansen :))
2d
Blange Blange
Very good question MP! Hope Ole Hansen can help us to understand this
2d
Ole Hansen Ole Hansen
Hi MP and Blange. It looks like GCc1 is currently tracking Oct17 instead of Dec17 which is currently the contract with the most traded volume. I have passed on your observations to our data guys.
2d
Market Predator Market Predator
Hello Ole, thanks for your feedback. I'm adding next observation for: data guys. Let them to see Week chart.
Relevant articles for you

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail