Trading Plan – Monday 8th November 2021: Inflation in focus this week
Good morning traders.
Last week was fun. On Thursday, we had Bank of England Governor Bailey and the jolly Monetary Policy Committee vote by 7 to 2 to hold interest rates steady. The market expectation, based on Bailey’s own jaw boning, was for a hike. The GBP tanked and is still going down as I write. Bailey later said that it was “not his job” to guide markets. Better stop talking to them then Andy. I traded the GBPUSD short about 12 minutes after the announcement, once volatility had subsided. I closed it on Friday for a gain 2.43 percent. I have mixed feelings about that. On the one hand, an opportunistic gain like that is welcome. On the other hand, having a governor with a shaky hand on the tiller worries me.
I also placed a WTI long which in retrospect was a poor trade. I managed to get out at breakeven. Brief videos of both are on the website in the members area.
This week, the calendar is sparse, and the Yanks are on holiday on Thursday for Veteran’s Day. We see inflation data on Wednesday from the US, Euro Zone and China. UK GDP on Thursday will be interesting.
As always, I go through my trading themes in the video.
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