Daily Alert – Tuesday 31st May 2022: Risk-on continues into this week

Mark NugentDaily Alert, May 2022

Daily Alert – Tuesday 31st May 2022: Risk-on continues into this week

Good morning.

German harmonised inflation comes in hot at 8.7 percent vs an expectation of 8.0 percent. This will bolster the new-found hawkishness of the ECB. We have the wider Euro-Zone data later today.

Global equities outside the US, where yesterday was a holiday, were modestly up and the general sentiment was risk-on. I looked at the Japan225 but did not trade it as the price was at resistance and that’s not a good place to enter. The S&P500 did little (holiday again). There is a chance the US indices will play catch-up later today when traders return to their desks.

I did go long on AUDJPY as the AUD strengthened and the JPY weakened on the sentiment. So far it is just in the money.

My tasks for the day are to watch the Euro-Zone inflation data closely (9am UK-time), look for upwards movements in the S&P500 this afternoon, and manage my AUDJPY trade.

We’ll be back tomorrow.

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