Trading Plan – Monday 7th November 2022: A tale of two central banks

Mark NugentNov 2022, Trading Plan

Trading Plan – Monday 7th November 2022: A tale of two central banks

Good afternoon.

Last week’s main events were central bank related. On Wednesday, we had a hawkish Fed with Chair Powell saying that he didn’t “have any sense that we’ve overtightened or moved too fast,” that it was “very difficult” to make a case that the current rate was too tight, and “It’s very premature to think about or talk about pausing our rate hikes.”

Then on Thursday we had a dovish Bank of England warning of six quarters of recession and saying that the peak interest rate will be lower than the current market expectation.

This strengthens the case to short GBPUSD.

This week we have a sparse economic calendar. The major event is the mid-term elections in the US where all the representatives and a third of senators are up for election.

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

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