Trade ideas thread - European session 29 January 2021

Author: Justin Low | Category: News

Daily thread to exchange ideas and to share your thoughts

It's a meme world out there and the retail trading frenzy spreading across the globe is making for uneasy sentiment as we get things going in the new day.

WCRS 29-01
Risk is tilted to the downside once again and isn't helped by fears in China surrounding a liquidity squeeze as overnight repo rates jump to their highest in almost six years - with the PBOC doing little to calm investors' nerves.
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US futures are in heavy retreat after a modest rebound yesterday as meme stocks got quelled by brokers starting to get in over their heads amid the chaos.

That is pinning the dollar higher ahead of European trading with USD/JPY a notable pair to watch as it eyes a potential break to the upside.

Silver also attracted some attention overnight as it surged by over 6% from $25.30 to near $27 before gains settled down a little to hold around $26.20 levels currently.

Gold missed out on the frenzy though as it gained to $1,867 before falling back to flat levels closer to $1,840 but is keeping a little higher on the day now.

Looking ahead, the risk mood is still the number one driver in the market and that will in turn impact sentiment in FX as well ahead of the weekend.

The market may be risk-off now but as we learned yesterday, things can easily turn around in the coming hours. However, month-end trading will make things even more trickier than they already are so that is something to consider.

What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.

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