Trading Plan – Monday 13th May 2024: Wednesday’s US CPI is the focus

Mark NugentMay 2024, Trading Plan

Daily Alert – Thursday 9th May 2024: Bank of England feeling pretty dovish

Good morning.

Before I get into this week, it is worth noting that UK GDP beat expectations to the upside on Friday, ending what was a (soft) recession in the UK where the two prior quarters showed economic contraction (Q32023) and then zero growth (Q42023). That’s good.

This week is all about US CPI on Wednesday. The expectation is for both headline and core CPI to show a decline from the prior month’s numbers. Any variance to this will either solidify (if CPI comes in above expectation) the Fed’s hawkish stance, or maybe soften the bank’s view (if CPI comes in below expectation). In any event, variation will impact the USD and, as such, affect my view on trading EURUSD, GBPUSD and USDJPY. I go through all of this in the video.

I will be back on Wednesday, probably with a text-based Daily Alert, covering the important US CPI numbers.

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