Trading Plan – Monday 5th September 2022: ECB to hike rate as inflation surges

Mark NugentSept 2022, Trading Plan

Trading Plan – Monday 5th September 2022: ECB to hike rate as inflation surges

Good morning.

Last week saw three days of indecisive risk sentiment and the remainder risk-off. The highlight was inflation in the Euro-zone, where the core rate, that is the rate with the known volatile elements of fuel and food taken out, hitts 4.3 percent, showing, troublingly, that inflation is broadly established in the economy. This is not limited to the Euro-zone.

I placed one trade: GBPUSD short and I exited just before the Friday close for a gain of 2.55 percent. I will send a brief video of this trade on Friday.

This week kicks off with the Russians halting gas supplies to Europe. We have interest rate-setting meetings in the Euro-zone, Canada and Australia, and GDP in the Euro-zone, Japan and Australia. OPEC meets today to set production targets for October. Bank of England Governor Bailey is up before the politicians to talk about monetary policy. There is a lot going on this week.

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

We’ll be back tomorrow.

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