Trading Plan – Tuesday 9th May 2023: Bank of England most hawkish?

Mark NugentMay 2023, Trading Plan

Trading Plan – Tuesday 9th May 2023: Bank of England most hawkish?

Good afternoon.

Last week we saw a dovish Fed as Chair Powell hinted that the 25 basis-point hike he announced could be the last.

The European Central Bank was also dovish, relatively. The EUR fell and is still doing so, maybe messing up my bias for EUR strength, which has proven to be profitable.

So far this week we have seen disappointing trade data from China.

The Bank of Japan said there was “extremely high” uncertainty over the economic outlook and this warranted keeping monetary policy ultra-loose. So, still no hikes!

On Wednesday we will get the latest inflation numbers in the US.

On Thursday it’s the turn of the Bank of England. A 25 basis-point hike is expected. It is possible that the Bank of England may become the most hawkish of the central banks.

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

I’ll be back tomorrow.

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