Daily Alert – Thursday 31st August 2023: No clarity from eurozone inflation
Well, yesterday it was all eyes on eurozone inflation. Core inflation came in as per the expectations but higher than the prior number on a month-by-month basis and lower on a year-by-year basis. Headline inflation, with the volatiles removed, was less encouraging. On a month-by-month basis we got a print of 6.3% against an expectation of -0.1% and on a year-by-year basis, 5.3% against an expectation of 5.1%. So, going the wrong way if you want lower inflation.
The summary of all the commentators I have read was that the European Central Bank will hike again at the September meeting. Or they won’t. I love economics.
Over in the US, the ADP Employment Change and preliminary GDP both missed to the downside.
In China, Manufacturing PMI beat expectations to the upside but, critically, was below 50 for the fifth consecutive month, indicating manufacturing contraction. That’s bad news.
I have not traded this week as there have been no high probability setups. It’s frustrating but that’s something we have to deal with.
Have a good weekend when it comes. I’ll be back on Monday.
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