Trading Plan – Monday 31st January 2022: “Nimble” Fed worries markets

Mark NugentJan 2022, Trading Plan

Trading Plan – Monday 31st January 2022: “Nimble” Fed worries markets

Good morning.

Last week was dominated by the Fed. Fed Chair Powell was very hawkish. However, there are doubts in the markets that the Fed can tame inflation and Powell’s comment that the Fed must be “nimble” has led some to believe that there is no specific plan in place. This is fuelling volatility.

I managed to trade the strong USD post-Fed and made 2.3% via USDCAD long. There is a brief video of this trade in the members’ area.

This week sees more central bank fun and games. Tuesday sees the Reserve Bank of Australia where no rate hike is expected. Thursday then sees the European Central Bank who have clearly stated they have no intention of raising rates. Also, on Thursday we have the Bank of England, where Governor Bailey has recently confused, and some say misled, the markets. The BoE is expected to raise rates by 25 basis points to 0.50 percent.

Risk sentiment as of 10am GMT is tilting towards risk-on.

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

We’ll be back tomorrow.

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