Trading Plan – Monday 15th February 2021: Vaccine news drives trading opportunities

Mark NugentFeb 2021, Trading Plan

Trading Plan – Monday 15th February 2021: Vaccine news drives trading opportunities

Last Friday saw a move to risk-on sentiment in the last two hours of trading and this risk tone endures today. Equities are on the move up, despite many players including the US being on holiday. The sentiment is being driven by improving Covid numbers, vaccine roll-outs (including a significant vaccination milestone being hit in the UK), very good GDP numbers in Japan and the Japan225 moving above 30,000 for the first time since August 1990. There is happiness all around.

So far, the major correlations are working: USD and JPY down, commodity currencies up. Country-specific sentiment is driving the GBP ever higher. The EUR is choppy as investors see execution risk in the EU’s plans due to their handling of the vaccination program, compounded by doubts about relations with China and the recent embarrassing visit to Russia by the EU’s foreign policy chief in the middle of the Navalny protests. Putin spanked him and sent three European diplomats home. Not a good look for the EU.

I have entered a GBPJPY long at around 7am this morning based on the UK strength and sentiment driven JPY weakness. It is currently 1x risk in the money. So, stop loss to breakeven and we observe…

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