Daily Alert – Wednesday 9th December 2020: Crunch dinner in Brussels

Mark NugentDaily Alert, Dec 2020

Daily Alert – Wednesday 9th December 2020: Crunch dinner in Brussels

Today, UK PM Johnson flies to Brussels to have dinner with EU Commission President von der Leyen in an attempt to save the Brexit negotiations. Let’s hope the wine isn’t corked. As I discussed on Monday, I will be positioning on the GBP by placing a pending long trade later tonight. I may also place a pending short trade. 

Sentiment is indecisive today as it was yesterday. Monday was moderately risk-off. Volatility is low and the usual inverse relationship between JPY and the commodity currencies is not as clean cut as I would like. Equities have yet to pull back and I will not run after a moving bus as new all-time highs are being made almost every other day. Therefore, I have no trades on at the moment. 

As you know I always right down the reasons to get into a trade and the reasons not to, BEFORE I place the trade. This often shows me that what I think is a good trade is not always so when all the factors are considered. As someone once said, think on paper, not in your head. 

I’ll be back on Friday.

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