Daily Alert – Wednesday 17th January 2024: UK CPI not reading the script

Mark NugentDaily Alert, January 2024

Daily Alert – Wednesday 17th January 2024: UK CPI not reading the script

Good afternoon.

In the UK, CPI went the wrong way. Both core and headline CPI exceeded expectations and the latter which is the metric the Bank of England are mandated to maintain at 2%, came in at 4.0% against an expectation of 3.8% and the prior month’s 3.9%. So, really going the wrong way. The GBP shot up and the FTSE100 dropped. Not good.

The European Central Bank (ECB) is about to go into its “quiet period”. This is the period where no one says anything to anybody in the run up to a monetary policy meeting. So, ECB President Lagarde decided to get her tuppence in, as her colleagues have been doing on Monday (hawkish, no cuts in 2024) and Tuesday (dovish, lots of cuts in 2024). She said it was likely there would be a majority vote for a first cut by the summer. There. She said it.

Elsewhere, China is struggling. Q4 GDP missed expectation to the downside.

My Japan225 is doing quite nicely with around 1.6% unrealised profit at this point. I will watch it closely as it may be going sideways on the H1 chart which can presage a move upwards.

I’ll be back tomorrow.

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