Daily Alert – Tuesday 28th January 2020: Profit taking and US Consumer Confidence cause equities to rise
Equities rise today with the majority of the gain happening as of 3pm UK-time when the US CB Consumer Confidence report came out with a positive print. I think this may be masking the negative sentiment due to the coronavirus situation, which is continuing to deteriorate.
The move takes out my S&P500 long for a profit of 1 times risk.
Last night I sold the GBP as last week’s post-CBI survey boost to the GBP had not fully reversed and moves of this kind usually do. I traded the GBP against the strong (as of last night) JPY and USD. The USD has stayed strong today so my GBPUSD short is doing well. However, the JPY has weakened today and although my GBPJPY short is going the right way, it’s sluggish due to the drag of the misbehaving JPY.
As I said yesterday, I still think negative risk sentiment will be playing a large part market moves this week.
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