Daily Alert – Thursday 21st March 2024: Dovish central banks

Mark NugentDaily Alert, March 2024

Daily Alert – Thursday 21st March 2024: Dovish central banks

Good afternoon.

The Fed held rates at 5.5% as expected. The famed dot plot shows the voters still believe there will be three cuts of 25 basis-points this year. Powell seemed keen not to over-emphasis recent hawkish data. The bank raised growth projections for the economy. All-in-all, the Fed was seen as dovish. USD down, equities up.

The Bank of England held rates at 5.25% as expected. Critically, the vote split moved from 2-1-6 (up-down-hold) at the last meeting, to 0-1-8. So, there are now no voters voting for a hike. As with the Fed, the bank was seen as dovish. The GBP fell and the FTSE100 rose.

I took a 1% gain out of my GBPJPY trade by closing half the position. My WTI short was taken out at breakeven by an intraday spike before moving in the desired direction. Annoying.

I’ll be back tomorrow with a brief video of my first ever bitcoin trade.

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