Trading Plan – Monday 20th March 2023: Markets calm as UBS buys Credit Suisse

Mark NugentMarch 2023, Trading Plan

Trading Plan – Monday 20th March 2023: Markets calm as UBS buys Credit Suisse

Good afternoon.

Last week was all about banks. Credit Suisse’s major shareholder ruled out taking a bigger stake in the beleaguered bank in quite an aggressive statement. The share price tanked, and the credit default swaps (insurance) on the bank’s debt reached levels not seen since the great financial crisis of 2008. The Swiss National Bank moved in with a boatload of credit but that was not enough to calm nerves. Over the weekend, UBS has “agreed” to buy Credit Suisse with regulatory and central bank help.

I had one trade, EURGBP long, which was unceremoniously destroyed by the Credit Suisse situation on Wednesday which weakened the EUR and killed the trade.

Also, over the weekend, the Banks of Canada, England, and Japan, along with the Fed, European Central Bank and the Swiss National Bank announced a coordinated action to enhance liquidity in the banking sector. I don’t know if I should feel good about that or more worried.

Things seem calm this morning but will it last?

This week we have interest rate-setting meetings from the Fed and the Bank of England. We also have inflation in the UK and Canada.

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

I will be back tomorrow.

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