Daily Alert – Wednesday 2nd December 2020: Seesawing sentiment as month begins

Mark NugentDaily Alert, Dec 2020

Daily Alert – Wednesday 2nd December 2020: Seesawing sentiment as month begins

Risk sentiment has been changeable this week. Monday was risk-off and some of the normal correlations between asset prices did not operate as normal due to month end and the US return from a long weekend.

Tuesday turned to risk-on as a US bipartisan Senate group made a new Covid-19 relief package proposal. The EUR was boosted by ECB talk of more stimulus before year end.

Today sees sentiment being indecisive against a sparse economic calendar.

I entered a EURJPY long trade on Tuesday night based on sentiment-driven weak JPY (on Monday the JPY did not reflect sentiment). I chose the strong EUR as counter currency. So far it is in the money but stuck at resistance.

For the rest of the week, major risk events are Brexit, OPEC meetings, ISM PMI in the US and non-farm payroll on Friday.

I’ll be back on Friday.

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