Trading Plan – Monday 8th April 2024: US CPI and ECB are the highlights

Mark NugentApril 2024, Trading Plan

Trading Plan – Monday 8th April 2024: US CPI and ECB are the highlights

Good morning.

This week’s highlights are clear. 

On Wednesday we have US inflation. This has many implications. Obviously, the readings will impact the Fed’s thinking on rate cuts. That will have a knock-on effect on the value of the USD and hence the USDJPY rate. The Bank of Japan has made it quite clear that any further weakening of the JPY will lead to intervention. The USDJPY is currently at the price it was when the Bank of Japan last intervened. 

We also have the recent ramping up of oil prices. As the US heads into “driving season”, this is a threat to the Fed’s efforts to tame inflation. Further aggravating the picture is export cuts from Mexico and a plethora of further supply-related issues. All eyes will be on monthly market reports due this week from OPEC+ and the International Energy Agency. 

On Thursday we have the European Central Bank rate setting meeting. Markets are expecting a first cut in June and a second in July. 

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

I’ll be back tomorrow.

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