Trading Plan – Monday 11th December 2023: Three central banks to the fore

Mark NugentDecember 2023, Trading Plan

Trading Plan – Monday 11th December 2023: Three central banks to the fore

Good afternoon.

It’s central bank mania this week. First up we have the Fed on Wednesday. No movement from 5.5% is expected. They will say, of course, that if they need to raise rates they will. They are unlikely to say the opposite. “Hey, we need to raise rates but we’re not going to.” The statement and press conference will be analysed word-for-word to see if there’s any hint that rate cuts have entered the Fed’s thinking process.

On Thursday it is the turn of the European Central Bank (ECB) and the Bank of England (BoE). Neither is expected to make a cut from current levels (ECB: 4.0%, BoE: 5.25%). We had two staffers last week from the ECB alluding to rate cutting. Let’s see if Lagarde joins in with the gossip on Thursday. Over at the BoE, we have the issue of the highest and most horrible inflation in the developed economies, coupled with anaemic economic growth.

Should be a fun week.

I’ll be back tomorrow after US CPI.

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