Daily Alert – Wednesday 11th October 2023: Fed tilting towards another pause

Mark NugentDaily Alert, October 2023

Daily Alert – Wednesday 11th October 2023: Fed tilting towards another pause

Good afternoon.

Equities are on a bit of a tear as bond yields fall (as the prices increases). It’s not just a run for safe assets, now we are seeing Fed voters saying that maybe they don’t need to hike again as recent bond yield increases have tightened the financial situation, effectively doing a part of the Fed’s job for it.

The Fedwatch tool is now showing a 92% chance of no hike in November and a 72% chance of no hike in December.

All this fun is pushing the USD down which has prevented me trading foreign exchange this week. WTI is correcting after it’s gap-up and move up on the Sunday night open caused by the events in the Middle East. So, no trading for me so far this week.

I’ll be back tomorrow after all the US CPI data, which of course, will play a big part in the Fed’s hiking decisions.

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