Inauguration calms the market.

The initial take away from 'Trumps first day in office' has been USD weakness. The possibility of hard hitting tariffs contributed to USD strength throughout December and January (the other factor was of course the strong US economy). But no mention of imminent 'hard hitting tariffs' has hit the USD (along with last week's 'soft' data). And for the time being the market it at ease and 'risk on' trades look very viable.

Unfortunately, we had to expect the unexpected during the administrations first term and I suspect it will be similar this time round. And it won't be long before a tweet rocks the boat. But for now, I have my eye on 'risk on' possibilities, it's a question of whether to short the USD, JPY or CHF. Each option comes with it's risks, namely the BOJ, strong USD data or Trump volatility. There is a case to say CHF short is the best option but I'll refer to the momentum the currencies have against each other and wait for a stop loss I feel comfortable with.

Feel free to email any thought or questions: johnelfedforexblog@gmail.com