Trading Plan – Monday 18th January 2021: Negative sentiment ahead of Presidential Inauguration

Mark NugentJan 2021, Trading Plan

Trading Plan – Monday 18th January 2021: Negative sentiment ahead of Presidential Inauguration

The markets start the week moderately risk-off as the US takes a holiday for Martin Luther King Jr. Day. The sentiment is being driven by the movements in the US 10-year bond, GOLD, the USD and the JPY. Equities themselves are flat.

This is the week of the US Presidential Inauguration (Wednesday) and there is some tension in the air after the recent nonsense in the Capital.

We have central bankers at the fore with the Bank of Canada’s rate and statement on Wednesday, and similar from the Bank of Japan (yawn) and the ECB on Thursday. No chance of any rate changes while this pesky virus is around but as always, the statements can move the markets.

Based on sentiment, I’ll be taking a close look at the JPY and commodity currencies later this evening.

Have a great week and I’ll be back on Wednesday.

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