Trading Plan – Monday 8th February 2021: US stimulus hopes drive early risk-on sentiment
We start the week off with positive risk sentiment as the US Senate votes to fast-track President Biden’s stimulus plan. Equities are moving up slowly, accompanied by the US 10-year bond yield and oil. The JPY is down. All as we would expect. GOLD is doing its own thing and rising, something we would expect to see when risk-off. Remember, risk sentiment and price movements are correlations, i.e., they often move in predictable ways relative to each other. One does not cause the other, and the relationship is not guaranteed. As always, the main “tells” for risk sentiment are equities and bond yield.
Have a great week. I will be back on Wednesday.
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