Daily Alert – Wednesday 2nd August 2023: Fitch downgrades US

Mark NugentAug 2023, Daily Alert

Daily Alert – Wednesday 2nd August 2023: Fitch downgrades US

Good morning.

It has been an indecisive week so far. We have seen some bad PMI data from China showing that the economy is struggling to return to full strength after the prolonged covid shut down.

The Reserve Bank of Australia surprised markets by holding rates at 4.1% when a 25 basis-point hike was expected. The AUD falls.

In the US we had Manufacturing PMI missing expectations to the downside, as did JOLTS Job Openings. Then there is was the small matter of the rating agency Fitch downgrading the US from AAA to AA+, citing an “erosion of governance” that has “manifested in repeated debt limit standoffs and last-minute resolutions.”

I see no trading opportunities at the moment. The Fitch downgrade is causing some strange movements, so I think I’ll just observe from the sidelines for the time being.

I’ll be back tomorrow with your Performance Report for July.

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