Daily Alert – Wednesday 31st May 2023: Debt deal vote set for tonight

Mark NugentDaily Alert, May 2023

Daily Alert – Wednesday 31st May 2023: Debt deal vote set for tonight

Good morning.

Any residual doubt that the US would fail to increase the debt ceiling was quashed by both the Democrats and the Republicans saying they had the numbers needed to get the bill passed in tonight’s House vote.

Risk sentiment was indecisive in a sparse calendar and remains so today.

I took one trade: EURGBP short, based on a weak EUR and strong GBP. The trade is doing OK, despite the GBP being weak today. How so? Well, the EUR is even weaker, making the GBP relatively strong. Sometimes you just get lucky. I have moved my stop loss to breakeven. No money at risk.

I notice oil is heading down towards support, driven there in part by poor economic news from China. OPEC+ are meeting this weekend and there is the chance of a further production cut. I will keep my eye open for a possible reversal.

Later today we have German inflation and, of course, that vote in the US.

I’ll be back tomorrow.

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