Friday Workout — Reverse Currency; View from the Top of Gherkin
- Chris Haffenden
One of the fundamental mistakes of trading and investing is to try and pick turning points and misinterpret data to fit into your new narrative. The trend is your friend is one of the biggest trading truisms. But human nature is your biggest enemy, evidenced once again this week as US CPI numbers crashed the recent dash for trash narrative. US equity markets ended up with their worse day since June 2020 and the charts on a technical basis look awful.
As analysts from Oanda wrote this week: “There appears to have been a tendency in recent months to front-run certain releases in the hope that it’s going to prove to be the “pivot” moment when everything starts to look-up, central banks can ease of the brake and risk assets will have bottomed.”