In today’s post, Thinus went through the M2 setups, the Dollar Index, SP500, and crypto. Around 20 minutes into the video I went through the Earth and Sky setups for the week which Pierre shared in his post yesterday.
UK heading for a recession
I shared with you a post where BOE announced that UK is likely to head for a recession later in the year. It is the first time they have raised rates by the most in 27 years.
They are predicting the economy to shrink in the last 3 months of the year.
They also mentioned they are expecting the recession to last for at least 5 quarters. So just over a year.
Growth is expected to slump, the Unemployment rate to rise, inflation to peak at 13.3%, Annual bills for energy to rise to £3500 and borrowing costs to increase.
This of course will affect a lot of people, especially homeowners, as they are likely to struggle to pay off their loans or mortgages.
People will have to be extra cautious with their spending and hence why the growth is expected to slump.
I also showed you that there was an un announced speech which I didnt seem to see in the calendar.
BOE member Ramsden came out saying BOE might be in a situation of cutting rates and selling assets at the same time. Which is very Dovish for the GBP.
As Marc mentioned to us months ago, he wasn’t expecting the banks to keep raising interest rates as this could harm the economy. He was again “spookily accurate”.
What is shocking is the things happening in the US, they have so far changed the meaning of a recession, while the UK seems like have stuck to the original meaning.
They have also signed another bill around $430 billion to curb climate change, boost clean energy and also help bring down the prices of medical care. Not sure how this will help to bring down inflation but these things are happening as we speak.
We are NOT a “tipping service” our aim is to teach you how to trade for yourself.
You can view the full recording of the live session below:
Ashley and Thinus