In the markets, the European Central Bank raised interest rates by 0.75% yesterday and flagged the possibility of up to five more increases to come, writes Ian Murphy of MurphyTrading.com.
On a political level, relations between Britain and Ireland are often complicated, but we share a common culture on these islands and bonds of friendship remain strong. Allow me to extend my sympathies to family, friends, and clients in the UK on the passing of Queen Elizabeth II.
I had enormous personal respect for the Queen, as did most Irish people. She embodied the dignity and grit of my parents’ generation—she will be missed.
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In the press conference, which followed the announcement, Madame Lagarde, the ECB president, made it abundantly clear they will keep hiking until inflation falls below 2%.
The euro recovered some ground against the dollar following the event and is back above parity in overnight trading. Technically it’s also back above the EMA (circle), but the unassailable strength of the dollar has been this year’s big forex story.
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The Daily Help Strategy was close to triggering yesterday, but the new 20-day lows creeped up as the session progressed and the Pessimism indicator ended the day at 12.55%. A positive follow-through on price today will likely form a trigger, provided the new lows remain below 10%.
I’ve left in the short stop on the chart above, as a few people want to see how this short trade ends. Don’t forget I will be reviewing the latest trigger on the strategy at 09:30 EDT today on the MoneyShow Accredited Investors Virtual Expo.. If you miss it, you can watch it on demand by visiting MoneyShow's Content Library in a few days.
Learn more about Ian Murphy at MurphyTrading.com.
