Good morning and welcome to episode 770 of āTalking Bullā. Here are the latest headlines today, Hawkish ECB rhetoric. Bundesbank more confident, PMI business confidence data Tuesday, Equities strengthen, Dollar drifts, UK government borrowing surges & Chinese markets closed.
We take a technical look at key markets that are likely to be impacted by today’s events. Also, we participate in a āGun to the headā challenge where each of us calls a live trade. These will expire at 9pm tonight and we will keep track of the progress over time.
We hope you enjoy it!
For a selection of free educational content, join our Discord server at – https://discord.gg/Db4UWVFvF6
Show notes:
Joe was stopped out on USDJPY.
We have included an illustration based on a Ā£1000 account. This will follow the combined return of our morning trades by risking 1% of the trading capital per trade. The 1% risk is a variable monetary amount and will rise and fall based on the success of the calls.
We are currently up 215.27% collectively since we began recording Talking Bull on the 30th October 2019.
News
Hawkish ECB rhetoric
ECB council member Kazimir stated that the central bank should deliver two more interest rate increases of 50 basis points in February and March despite an easing in inflation pressures.
Kazimir also stated that it was essential to focus on underlying inflation.
Bundesbank more confident
In its latest monthly report, the German Bundesbank stated that the economy likely stagnated in the fourth quarter of 2022, but this was a better performance than expected previously.
The German central bank also stated that recent indicators have been better than expected while stresses in the energy market are easing and supply-chain bottlenecks are slowly dissipating.
PMI business confidence data Tuesday
The latest Euro-Zone, UK and US PMI business confidence data will all be released on Tuesday. The data will be watched closely to assess the overall economic outlook and the relative outlook for major economies. Consensus forecasts are for the Euro-Zone services sector to edge into expansion with further contraction for all other components.
Equities strengthen
Equities were able to make further headway on Monday as gains on Wall Street sparked a further advance. US indices posted 6-week highs amid hopes for a global economic rebound.
Dollar drifts Ā
The dollar posted limited net gains at times on Monday, but was unable to sustain the gains, especially with fresh buying for commodity currencies.Ā The yen also recovered from intra-day lows.
UK government borrowing surges
The UK government borrowing requirement for December surged to Ā£27.4bn from Ā£10.7bn the previous year and the highest December deficit on record,
There was a surge in spending on energy-support schemes and debt interest payments also increased further.
Chinese markets closed
Chinese markets will remain closed all week for the lunar new-year holidays.
Data Today
09.00: Euro-Zone PMI index (flash readings)
09.30: UK PMI index (flash readings)
14.45: US PMI index (flash readings)
00.30 (Wed): Australia consumer prices
Key events over the next week
January 25th: Canada interest rate decision
Gun to head challenge – Update
Today’s trade idea
Sell AUDJPY @ 91.382
Stop: 92.02
Target: 89.38
Have a great week everyone.