Daily Alert – Wednesday 18th January 2023: Bank of Japan disappoints, AGAIN

Mark NugentDaily Alert, Jan 2023

Daily Alert – Wednesday 18th January 2023: Bank of Japan disappoints, AGAIN

Good evening.

Early this morning, the Bank of Japan disappointed the markets. After the surprise tweak to yield-curve-control in December, the markets were expecting a move away from negative interest rates. Instead, the bank did nothing, and in fact suggested we should expect more of this doing nothing. The JPY fell and fully recovered. Equities rose and have since given back half of the gain.

Inflation in the UK missed target (10.5 percent vs 10.6 percent), but the message is that prices are remaining stubbornly high. The GBP is rising.

Sales in the US missed expectations, which might cause the Fed to hesitate with rate hikes, but the USD rose, and equities fell.

It’s been a funny start to the year. This week, we are on our third day of indecisive risk sentiment. I saw no high probability trading opportunities.

I’ll be back tomorrow.

VIP Club members can see today’s video, all brief trading videos, the Monthly and YTD Performance videos, the Trading Video Course and download the MTM Indicators software HERE