Daily Alert – Wednesday 17th April 2024: Europe and US now on different paths

Mark NugentApril 2024, Daily Alert

Daily Alert – Wednesday 17th April 2024: Europe and US now on different paths

Good afternoon.

UK CPI beat expectations to the upside at the headline and core level. However, the readings showed a lowering of prices from the prior number, so the direction of travel is what we want to see. In fact, Bank of England (BoE) Governor Bailey talked yesterday about cutting rates before the Fed and we can be certain he had the CPI numbers before he spoke.

In the video, I cover several news stories that have impact on the fundamentals of the asset classes we trade:

  1.  China’s economy is struggling (implications for global growth, oil price etc)
  2.  Japan (maybe) not fully committed to strengthening the Yen (impact on JPY, obviously)
  3.  Fed Chair Powell saying the Fed will wait for longer than previously indicated before cutting the interest rate (leading to USD strength, weaking of other currencies, pushing down equity prices, oil)
  4. BoE Governor Baily saying the bank may cut before the Fed (weakening GBP, bolstering FTSE100)

No trading so far for me this week.

I’ll be back on Friday.

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