Trade ideas thread - European session 16 January 2020
Daily thread to exchange ideas and to share your thoughtsGood day, everyone! Hope you're all doing well as we get things going in the session ahead. It's been a relatively calmer start to proceedings as the market continues to digest the US-China Phase One trade deal - not like there's a whole lot.
But the key risk event so far went through without a hitch and with the optimism pretty much fully priced in, market participants are left pondering what happens next.
Despite the Trump administration's claims that Phase Two talks have "begun", I still reserve some doubts over that and more so over whether or not the US and China can agree to more core and structural issues over the next few years.
Yes, years. Don't expect another quick and easy - with nothing major - agreement such as the one that was signed yesterday.
At this stage, I reckon investors are looking for any hiccups in the deal still as a reason to take some money off the table. Otherwise, the optimism will eventually wane and perhaps we may see a more modest retracement and correction in risk.
Looking ahead today, there isn't much else to shake things up in the European morning but in US trading there will be retail sales data to come.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.