Trading Plan – Tuesday 30th August 2022: Markets overreact to Powell
Well, my prediction that last week’s Jackson Hole bun fight was skewed to the upside in terms of likely impact on equities was, er, completely wrong. The market decided that Fed Chair Powell’s comment about rate hikes causing “some pain to households and businesses and aren’t likely to come down soon” was in fact hawkish instead of simply bleedin’ obvious. Equities fell and the USD rose. My GBPUSD short spiked upwards for less than 5 minutes, taking me out for a loss of 2 percent, before moving my way and falling. My WTI long almost, almost made up for the loss but not quite, making 1.7 percent. So, a loss-making week. Ho hum.
This week has a sparse economic calendar.
I will be watching for the equities reversal, and I remain keen on GBPUSD short.
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