Daily Alert – Wednesday 5th April 2023: Gloomy central bankers

Mark NugentApril 2023, Daily Alert

Daily Alert – Wednesday 5th April 2023: Gloomy central bankers

Good morning.

Yesterday was quiet. Equities, the US 10-year bond yield, GOLD and the JPY all reflected risk-off sentiment.

The context for these moves is a helping of doom and gloom from some central bankers.

Firstly, the Reserve Bank of New Zealand raised interest rates by 50 basis points to 5.25%. The markets were expecting a smaller hike of 25 basis-points. Governor Orr said inflation remains too high and that expectations for price increases may also remain elevated despite a weaker economy.

Secondly, after the Reserve Bank of Australia’s rate hold on Tuesday, Governor Lowe reacted to market expectations that the bank’s tightening cycle is ending by saying he and his colleagues still expect a need for higher rates.

I took a EURUSD long trade, the theme being a strong EUR.

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