Daily Alert – Thursday 25th November 2021: FOMC Minutes shows hawkish Fed

Mark NugentDaily Alert, Nov 2021

Daily Alert – Thursday 25th November 2021: FOMC Minutes shows hawkish Fed

Good morning traders.

Yesterday saw a slew of data from the US. Most importantly, the FOMC Meeting Minutes showed that several voting members were open to removing monetary support quicker than already announced. The meeting was before the 10th of November CPI number which showed the fastest annual pace of price increases since 1990. In other words, the minutes were seen as hawkish and the reasons for hawkishness have only multiplied since. Having said all that, yesterday’s PCE Price Index, the Fed’s chosen measure of inflation, only managed to come in as per expectation.

It’s Thanksgiving today in the US so we expect markets to be quiet.

I closed my WTI long trade yesterday for a gain of around 1 percent. The move upwards had clearly run out of steam (as observed on the H1 chart) so getting out was the sensible thing to do. There will be a brief video of this trade for you tomorrow.

There is little remaining on the calendar to move markets and, with the US on holiday, I suspect that’s the week over for me from a trading point of view.

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