Daily Alert – Wednesday 29th January 2020: Yesterday’s surprise risk-on sentiment holds into this morning

Mark NugentDaily Alert, Jan 2020

Daily Alert – Wednesday 29th January 2020: Yesterday’s surprise risk-on sentiment holds into this morning

Yesterday ended up being strongly risk-on. Equity gains are being held this morning. I am surprised by this as I expected a longer period of risk-off sentiment due to the coronavirus situation. However, we trade what we see, not what we would like to see. I will consider going back to a long bias on equities if the current sentiment endures to the end of the trading day.

My GBPJPY short gets taken out at breakeven. My “weak GBP trade” GBPUSD short is still moving in the right direction, but today that is being driven by USD strength rather than GBP weakness so as the fundamental reason for getting into the trade is not currently driving the trade, I need to watch it closely and take profit if the USD stalls.

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