Daily Alert – Wednesday 31st January 2024: Prices drop in Germany, fuelling cut hopes
It’s all a bit quiet in the run up to tonight’s Fed announcement. No change to the interest rate is expected and it is unlikely that the Fed will hint at rate cutting. Today’s ADP Employment Change number was a bad miss (107K actual vs 145K expected) but the real market mover, Non-Farm Payroll, is not out until Friday.
Three of the four measures of German inflation showed good progress towards the European Central Bank’s target of 2%. Of course, this increases the likelihood of the next move being a cut and will add downwards pressure to the Euro.
I am staring at the Euro every day. It is trending down but is very choppy, changing direction almost daily. There are a couple of pairs I am considering shorting, more detail in the video.
I’ll be back tomorrow.
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