The drop in the headline Unemployment rate in Thursday’s NFP helped to boost risk appetite with US stocks closing higher. This is despite disappointing wages data and increasingly disturbing Covid impacts being reported across the USA.
The daily shift between risk-on to risk-off only reinforces that watching for trend line breakouts is the best strategy for traders to use. There was a perfect example of this last session with the GBP/USD. Recall that Friday is a holiday in the US.
Gold is up on risk-off flows but stocks were up on risk-on flows. It is a ‘go figure’ moment for sure with an escalating Covid situation in the US. The US$ index has printed a third consecutive indecision candle which kind of sums up things appropriately! The GBP/USD Descending Wedge is shaping up nicely so […]
It seems like it’s a case of Us and Them at the moment. ‘Us‘ being the considered and concerned Asia pacific market region fully cognizant of the reality of the Covid recessionary environment and, then, ‘Them‘ being the US rallying on the hope of more cool-aid (stimulus) and forward looking to the post Covid era. […]
Risk-on was the theme to start the week despite rising Covid-19 cases in many countries, the USA especially. I continue to be amazed at the disconnect between Wall Street and Main Street but I’m reading the markets are looking forward to the second half of the year and recovery post-Covid. This is why I continue […]