Daily Alert – Thursday 23rd February 2023: Hawkish Fed rules the roost

Mark NugentDaily Alert, Feb 2023

Daily Alert – Thursday 23rd February 2023: Hawkish Fed rules the roost

Good afternoon.

Last night’s Fed minutes were hawkish. Some members of the Open Market Committee wanted a 50 basis-point rise at the recent meeting. The minutes suggested a higher peak rate than the 5.1 percent previously indicated in December. Markets are now predicting a high of just above 5.3 percent.

Equities did NOT fall, with market participants saying essentially “yeah we knew the Fed were serious”. Welcome to reality. You’re late.

Elsewhere, the Euro zone core CPI number from 1st February was revised up to a record 5.3 percent. This will embolden the hawkish European Central Bank.

The GBP reversed Tuesday’s move up caused by the positive Services PMI print. I took a GBPUSD short position at market. The price is close to support so it might stall.

Looking ahead, we have US GDP this afternoon.

I’ll be back tomorrow with little 2-minute videos of my GBPUSD and EURGBP trades from last week.

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