Daily Alert – Wednesday 6th September 2023: BoE says inflation “coming down quite markedly”

Mark NugentDaily Alert, Sept 2023

Daily Alert – Wednesday 6th September 2023: BoE says inflation “coming down quite markedly”

Good afternoon.

What’s been happening since my last video on Monday?

We see US dollar futures traders forecasting a 95% chance of a Fed pause at the next meeting on 20th September. This view has been somewhat dented by today’s strong Services PMI, but the strong likelihood remains a pause.

Factory Orders in Germany came in very poorly indeed, almost 12% down for July on a month-for-month basis. European stocks are falling.

Saudi Arabia announced that their 1 million barrels-per-day production cut would continue until year-end. This was priced in last Thursday and Friday, but the oil price is grinding upwards nonetheless.

Over in the UK, Bank of England governor Bailey told the treasury select committee that “many of the indicators are showing that inflation is coming down quite markedly”. This is driving the GBP down as you would expect.

In terms of trading, I am looking closely at a strong USD. I go into more detail in the video.

I’ll be back on Friday.

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