Daily Alert – Wednesday 12th August 2020: Solid risk-on drives equity and JPY movement

Mark NugentAug 2020, Daily Alert

Daily Alert – Wednesday 12th August 2020: Solid risk-on drives equity and JPY movement

We are entering our third consecutive day of risk-on sentiment. That has not happened in a good wee while.

Trades of the week so far have been equity indices long (I chose Japan225 as the S&P500 is very close to resistance at its all-time high) and weak JPY (which Steve paired with the very strong CAD, i.e. CADJPY long). Both trades are two times risk in the money.

I don’t see anything of great note looming on the calendar so I will be focusing on sentiment. Unless we go risk-off, long equities and short JPY will remain the favoured trades.

I’ll be back on Friday.

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