Daily Alert – Thursday 16th December 2021: Hawkish Fed calms markets

Mark NugentDaily Alert, Dec 2021

Daily Alert – Thursday 16th December 2021: Hawkish Fed calms markets

Good morning.

Yesterday’s big news was the Fed’s FOMC Meeting. In a nutshell, the bank was more hawkish, speeding up tapering and being more bullish on interest rate hikes. So, the USD went up and equities fell, right? Wrong. The message clearly delivered was that inflation will be tamed without excessive interest rates. In other words, no “hawkish mistake” will be made. The USD fell and equities jumped. If that’s not a warning to NOT trade news events as they happen, I don’t know what is.

Today sees the European Central Bank and the Bank of England move into the spotlight. These are important meetings, and the markets will be watching closely. I will be looking at the Bank of England in particular. Governor Bailey did not cover himself in glory last time out and an unexpected rate hike is an event I would trade as it happened, like I traded last month’s unexpected lack of a hike.

Other than that, I think I am done for the year. I will produce a year-end Performance Report next week.

Thank you for your continued interest.

We will be back on Wednesday 5th January.

Have an excellent Christmas and a Happy New Year.

VIP Club members can see today’s video, all brief trading videos, the Monthly and YTD Performance videos, the Trading Video Course and download the MTM Indicators software HERE