Trading Plan – Monday 12th June 2023: Will the Fed pause? That’s the question.

Mark NugentJune 2023, Trading Plan

Trading Plan – Monday 12th June 2023: Will the Fed pause? That’s the question.

Good evening.

Last week was notable for two central banks, the Bank of Canada and the Reserve Bank of Australia, unexpectedly hiking rates. This hawkishness was mirrored in a statement by Christine Lagarde, President of the European Central Bank (ECB), where she made it clear, again, that they would do what they had to do to curb inflation.

Also last week, Saudi Arabia announced it will cut oil production by an extra 1 million barrels-per-day in July. Oil gapped up on the Monday morning but fully reversed by the end of the day and is now even lower.

The week-before-last, my EURGBP short closed for a gain of 4.28%, the second-best trade of the year, so far. There will be a brief video of that for you on Friday.

This week we see rate decisions from the Fed, Bank of Japan (BoJ) and the ECB. I think we know what the ECB and the BoJ are going to do. The big question is, will the Fed pause? The markets are saying there’s a 75% chance the Fed will pause. But that’s just an opinion and we know what Clint Eastwood had to say about opinions.

As always, I go through my trading themes for the week in the video.

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