7 Indices Suffering from Tariff Wars over Greenland. Buy the Dip?

In today’s GCI Market Outlook, let’s take a look at Forex Trading on USDJPY, AUDUSD, Gold, XAUUSD, Silver, XAGUSD, the NASDAQ, the S&P500 and the DAX40.

Just a reminder that these videos are intended as educational, we are only observing current market conditions, and these are not to be considered as trading advice.

We can never be certain about where the markets will move, especially under the current US administration.

The recent tariff threats from the White House against European nations, regarding the frustrated attempts to purchase Greenland, have negatively affected most indices, which opened with a gap this morning.

One of the worst victims was the German DAX40, and we can see a minor bit of volatility from yesterday.

We see a similar picture with the US indices like the S&P500, and the NASDAQ.

In fact, you will find most global indices in the same situation like the DJIA, the Russell 2000, the CAC40 from France, and the FTSE100 from the UK.

Any good news on Greenland or tariffs should easily have investors piling back into the market.

However, the POTUS, Donald Trump, is not backing down but plans to speak to world leaders tomorrow in Davos, at the World Economic Forum.

You may see all the available indices by clicking on the cTrader Trade button and opening the Indices menu.

You have access to the US, European, Brazilian, Australian, Hong Kong, and Japanese markets.

The green check mark indicates that the markets are open and the symbol may be traded.

The yellow bars indicate that the market is closed.

To get full information on an index, including open hours, select the index, open the Active Symbol Panel, and everything you need to know is on display.

Getting back to the markets, this tariff and geopolitical uncertainty has driven price action on gold and silver to breathtaking highs.

XAUUSD is now at over $4,700, and XAGUSD is now at over $94.

Price action may retreat a little on good news, but don’t expect a crash or any permanent fall in price.

As you would expect, USD has taken a hit in most pairs, and here we can see just how much on AUDUSD.

Last time, we spotted this double top on AUDUSD and, true to form, price action gave us a nice short trade.

Of course, the current turmoil outweighed the pressure on AUD, and price action broke out of this range.

When we move out to the 4-hour chart, we see mixed technicals and resistance above the current price.

But, we need to wait to see what happens in Davos tomorrow.

Also, regarding AUDUSD, we have Australian Employment news on Thursday and US GDP and PCE later in the day.

Importantly for the yen, we have a BoJ Interest Rate and Monetary Policy on Friday.

As we can see, JPY has gone weaker still.

The question is: will the BofJ try to stop the slide.

That’s all for now.

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