Daily Alert – Tuesday 6th February 2024: Markets have heard you now, Mr Powell
Yesterday was risk-off as the market completed its second day of realising they should have listened to Fed Chair Jerome Powel last Wednesday. US yields and the USD itself soared as traders realised Powell meant it when he said, and I paraphrase, “rate cuts? Yes. Now? No”.
Last night I shorted EURUSD as I have been threatening to do for some time. The USD has reversed a wee bit (going down) which is not helping, but the trade is only just under water.
Today has been quiet. Eurozone Retail Sales were horrible at -0.8% for December, but slightly better than the expectation of -0.9%.
I’ll be back tomorrow. There are no Tier I economic events tomorrow, so there will probably be an alien invasion or a plague of locusts. Stay tuned.
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