Daily Alert – Tuesday 4th October 2022: GBP recovers as clown show unravels

Mark NugentDaily Alert, October 2022

Daily Alert – Tuesday 4th October 2022: GBP recovers as clown show unravels

Good morning.

Yesterday was risk-on. Equity indices moved up, in some cases by more than one times ATR. I took Japan225 long as it moved up from solid support, aided by a weak JPY. This trade is bread-and-butter for us. It is obvious and stands a high probability of success. We have traded this type of setup a hundred times. I hope you took it. You did, didn’t you?

Elsewhere, the GBP continues to recover after the self-inflicted injury of the mini-budget. The Chancellor reversed the 45% tax band cut. Now there is pressure to reverse other elements of the package. Oh, and Kwasi’s fiscal plan, for which he was going to make us wait until the end of November, will now be delivered this month. Both of their reputations lie in tatters. They’re both lightweights and they got found out.

There is a suggestion that OPEC+, which meets on Wednesday, is going to agree a production cut of at least one million barrels per day in the face of global growth concerns as central bankers tighten the interest rate screw.

There is little left on the calendar today.

I’ll be back tomorrow.

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