Daily Alert – Wed 14 Aug: Risk sentiment recovers…for a while

Mark NugentAug 2019, Daily Alert

Daily Alert – Wed 14 Aug: Risk sentiment recovers…for a while

Market sentiment improves around 230pm UK time yesterday as Trump delays the start of new tariffs on Chinese imports from 1st September to 15th December. Equities and WTI rise and GOLD falls. On FX, the JPY retreats and AUD and NZD rise. All like clockwork, and messing up my plans on AUDJPY, GBPJPY and GOLD. This is why I trade at the end of the day and not intra-day. In this case waiting until the end of the day resulted in no trades placed. Intra-day trading would have led to losses.

In other news, Germany reported a quarter of contraction with GDP at -0.1% as per expectation.

All-in-all risk sentiment improved markedly yesterday after Trump’s tariff delay announcement.

Then, at 3am today UK time, China reported it’s worst Industrial Production number in 17 years. This is quite a bad number if you consider it is heavily massaged by the Chinese authorities. The Trump-inspired moves have stopped in their tracks.

I will wait and see what happens to sentiment today. The markets have been close to untradeable so far this week.

The updated Trading Plan is HERE.

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