Daily Alert – Thursday 1st September 2022: Jackson Hole hawkish fallout continues

Mark NugentDaily Alert, Sept 2022

Daily Alert – Thursday 1st September 2022: Jackson Hole hawkish fallout continues

Good morning.

Apologies again for a text-based Daily Alert. I am struggling with internet upload speeds sufficient to allow video uploading.

Yesterday saw indecisive risk-sentiment.

The fallout from Jackson Hole continues as US 2-year bond yields hit a 15-year high on central bank hawkishness. Traders now think that there will be a 75 basis-point hike by the Fed at their next meeting on 21st Sept.

Wednesday’s Euro-zone inflation printed at an all-time high of 9.1 percent. This has prompted Goldman Sachs, Bank of America, and JP Morgan to predict a 75 basis-point rate hike by the European Central Bank next week.

The Group of Seven (G7) edge closer to allowing global purchases of Russian oil at a capped price. Discussions will continue tomorrow. The plan allows oil buyers access to financing and insurance, currently barred under sanctions. The hope is this will help to ease turmoil in the energy markets as well as deny Russia crucial revenue. Sounds like a stretch to me.

Across the globe, equities continued down and bond yields continued up. My GBPUSD short continues to perform. WTI (oil) has yet to show signs of reversing as it settles nicely on support.

So far today, equities are continuing down. I am still looking closely at WTI for signs of a rally.

Due to my internet issues, the brief videos of last week’s trades and the August Performance Report will be issued on Saturday morning.

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