Weekly review.

The week starting Monday 11 December was dominated by one thing: Mr Powells surprise 'dovish' shift at the FOMC meeting. Personally, I, (and most of the market) was expecting a pushback on the potential of rate cuts next year. But Mr Powell did the opposite and actually signaled 3 cuts in 2024. This sent the 'market' into full 'risk on' mode. With stocks higher, bond yields lower and the dollar weak across the board. And has now set the tone for potential dollar weakness over the medium term.

Over to Europe and both the ECB and BOE tried to remain as hawkish as possible during their interest rate statements. Which is positive for both currencies in an environment after central banks seem to be in a race to cut rates. Although the breaks were sharply applied to the EUR following Friday's PMI data. Which suggests the European economy is slowing and no matter how hawkish the ECB attempt to sound, the incoming data may force rate cuts sooner than expected.

Moving into the new week and all eyes are on the BOJ and the highly anticipated December rate meeting. Which vound well create JPY opportunities in either direction depending on the outcome.

On a personal level, it was a decent week with 3 trades:

Trade 1: USD JPY -1

Trade 2: NZD USD +1.5

Trade 3: GBP USD +1.5

Total: +2%

Results since start of blog in June =+19.5%