Will Jerome Powell Pivot on the Pivot?

Will Jerome Powell Pivot on the Pivot?

Our Urgent Market Update Video reviews important real-time market developments and their impact on high-probability trading opportunities. Today, we discuss tonight’s important moment for the Jerome Powell pivot and whether we will actually “pivot on the pivot” which he asserted back in December of 2023.

We will discuss what this means in simple terms. Basically, in December of last year, Jerome Powell proactively adopted a dovish view towards interest rates in the US which led to a breath-takingly bullish rally in global Indices markets (amongst others). This was not particularly necessary at the time but proceeded regardless. This narrative is now coming back to haunt him because inflation has ticked higher, the economy broadly is still strong and employment numbers and wages are still strong. This means Jerome Powell does not seem to have any reason to continue his dovish message.

As a result, in our opinion, this presents us with some fantastic high-probability trading opportunities in weaker Indices markets and a stronger USD. We have already positioned ourselves in these trades, however, there will likely be many more opportunities that will present themselves in the coming days. As always, protect your capital first due to current market volatility and let your winners run when they come your way.

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