Trading Plan – Monday 12th July 2021: Interesting weekend events

Mark NugentJuly 2021, Trading Plan

Trading Plan – Monday 12th July 2021: Interesting weekend events

Hello traders!

Last week ended well with my WTI and Japan225 longs both being quite profitable. There are brief videos in the members area.

Over the weekend there have been some events.

Firstly, the ECB’s Lagarde flags that there will be a policy change at this month’s meeting (a week on Thursday). She spoke of further stimulus, dovetailed with the scheduled end of the current PEPP (Pandemic Emergency Purchase Programme) in 2022. It is worrying that all the major global economies show no real sign of weaning their economies off the endless free money trip we have been on since 2008.

Secondly, China reduced the amount they require banks to hold in cash by 50 basis points, effectively freeing up USD154 billion that can be used to prop up their economy which has seen recent lockdown easing-fuelled growth stalling. Another bad sign.

Finally, the G20 agreed the 15 percent minimum corporation tax and that the tax will be based on where the corporations made their money, not where their headquarters are located. We are all looking at you Ireland.

The calendar shows rate announcements and (the more important) statements from the Bank of Canada, Reserve Bank of New Zealand and the Bank of Japan.

Fed Chair Powell will testify for two days in front of Congress. He could say something that may move the market, especially after the last rate meeting (16th June) where the Fed was seen as being hawkish, only for the minutes of that meeting (released 7th July) to be seen as dovish. Confusing.

As always, in the video I go through everything and my trading focus for the week which includes a bit of a re-think on currencies.

Happy trading.

I’ll be back on Wednesday.

Members can see today’s video in the VIP Club HERE