Daily Alert – Thursday 26th October 2023: US economy soars; ECB holds

Mark NugentDaily Alert, October 2023

Daily Alert – Thursday 26th October 2023: US economy soars; ECB holds

Good afternoon.

The European Central bank kept rates unchanged at 4.0%. President Lagarde reiterated her position that they will hike again if needed but feel enough has been done to tame inflation. She claimed that the possibility of a rate reduction has not been discussed. The Euro fell.

The truly amazing thing that is the US economy was further evidenced by annualised Q3 GDP coming in at 4.9% versus an expectation of 4.1% and a prior number of 2.1%. The FedWatch Tool remains unmoved, with a 99.4% probability of no hike at next week’s Fed meeting.

I traded WTI long and EURUSD short on Tuesday, and S&P500 short yesterday. The first is not performing, but the second and third are, quite nicely.

I will be back tomorrow when we will have a look at the Fed’s favoured measure of inflation (PCE) and a review of the week.

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