Daily Alert – Wednesday 17th February 2021: GBP continues to soar

Mark NugentDaily Alert, Feb 2021

Daily Alert – Wednesday 17th February 2021: GBP continues to soar

At the midweek point market are reasonably quiet. Equities are doing little at or near all-time highs. Oil is doing nothing despite snow in Texas crippling supply (the equivalent of the entire supply of Iran has been temporarily lost due to the weather.) GOLD is falling as the US 10Y Bond yield rises, making bonds more attractive zero-risk assets for times of risk-off sentiment.

On currencies, the JPY is tracking sentiment closely. The GBP is soaring on positive vaccination news. The commodity currencies are not tracking sentiment so well as has been the case for a few weeks now. The USD is going sideways. I do not think there is a firm consensus on likely USD movement. There are arguments for both USD strength and weakness. Hence the sideways movement as can be seen over the last two months on the weekly chart.

I traded GBPJPY long on Monday, as reported. I exited half the trade last night and the remainder when my stop loss was hit overnight. Total gain: +3.4%.

I’ll be back on Friday.

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