PROCESS IS KEY….DEFINE LEVELS – MARK EXPECTED PRICE ACTION – TRADE THE SETUPS
OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 20/04/23
Major Indexes were generally flat to lower both in Europe and the US as traders digest the UK CPI print and what may be in store for US inflation. The UK saw core CPI out at 6.2% vs 6.0% expected which is unchanged from the previous release. The BOE will not be happy with the figure as inflation remains high and they will need to raise rates further. This sets up for an interesting US FOMC in a few weeks as US CPI shows sticky inflation.
Longer term, I still feel that share markets are looking heavy and we may see some risk off moves which will pressure major indexes lower in the near term.
I remain of the view that sticky inflation is the big issue but it remains a balancing act for the Fed. Traders are continuing to anticipate the end to the rate rising cycle and may be wrong again. If the Fed stops too soon, then shares will rally and put pressure back on inflation.
Some KEY ACTIONABLE LEVELS into the Asian market session. Review of the European and US sessions and what that will mean to the price action in the near term along with key levels to watch.
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