Daily Alert – Wednesday 4th October 2023: Yields soar as data encourages Fed to hike

Mark NugentDaily Alert, October 2023

Daily Alert – Wednesday 4th October 2023: Yields soar as data encourages Fed to hike

Good afternoon.

The markets are a bit jittery this week. Bond yields and the USD are soaring as economic data, particularly the JOLTS Job Opening print, suggest the Fed will hike rates again. Equities are dropping. The fear gauge (VIX) goes above 20, the level at which most begin to worry.

On Monday, I made the same two trades as last week: EURUSD and GBPUSD. Although the weekly moves of all three currencies are as per my bias, the bulk of their movements occurred on Monday, before I placed my trades. That, coupled with today’s ADP Employment Change number (a significant miss to the downside, weakening the USD) has knocked out my GBPUSD trade for a loss of 1%. The EURUSD trade is significantly underwater. Oh well. You cannot win them all, although we have had very few losses lately.

I’ll be back tomorrow with your Performance Report for September and year-to-date.

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