Daily Alert – Thursday 29th July 2021: Fed Chair Powell unambiguously dovish

Mark NugentDaily Alert, July 2021

Daily Alert – Thursday 29th July 2021: Fed Chair Powell unambiguously dovish

Fed Chair Powell said a lot yesterday, but in a nutshell it was this: “substantial further progress”, the often stated aim of the Fed’s accommodative monetary policy, has yet to be made. QE will not be tapered until this aim is achieved. Interest rates will not be increased until QE tapering is complete. So, no interest rate hikes any time soon. The USD fell, as it might. He was dovish, I think it is fair to say.

Yesterday, sentiment was risk-on. I entered Japan225 long and HongKong50 long, both at market. Please note, we are investigating the calculations made by the MTM Position Sizer. It may be understating the calculated required contract volume by a factor of ten. Both trades are still around the entry price.

Tomorrow sees US GDP and German prelim CPI. With month end approaching, I think managing my two trades will probably suffice for me.

I will be back on Monday.

Have a great weekend when it comes.

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