Daily Alert – Friday 15th January 2021: Markets comatose in Trump’s final days

Mark NugentDaily Alert, Jan 2021

Daily Alert – Friday 15th January 2021: Markets comatose in Trump’s final days

It has been a quiet week with few risk events. Sentiment changed almost every day.

Equities are ending the week almost at the Sunday open price. It is the same with GOLD and oil. The JPY will end the week higher and the commodity currencies lower, all four following the sentiment very closely. However, price moves were insufficient to generate any real returns. I placed a pending short AUDJPY trade on Wednesday night, reflecting the prevailing negative risk sentiment at the time. The trade was not triggered and, as we went risk-on on Thursday, I cancelled the order.

Trump was impeached again to zero market reaction. As the saying goes, the markets often ignore politics, but not taxes. Biden is proposing a USD1.9 trillion, yes trillion, aid package for the US and that will need paying for with taxes. Hence, today’s risk-off sentiment and rising dollar.

Trade of the week was…there wasn’t one. That’s how quiet it was.

Have a great weekend. I’ll be back on Monday.

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