Senior Relationship Manager
Summary: USD Reaching Oversold Area - Lots of Releases Today
Good Morning,
Equities rose and the USD continued it`s slide yesterday on lower than feared inflation. The Dow rose by 1.14%, the S&P 1.33% and the Nasdaq 1.99%, the GER40 is testing the 15800. The USD Index is testing the support at 100.80. A breach would open the route to 100 and possibly 98. The USD decline has been extremely fast though and with the RSI at 27 we are in oversold territory.
EURUSD rose to 1.1070, GBPUSD 1.2540, while USDJPY fell to 132.50 and USDCHF to 0.8875. Gold and Silver rose to 2042 and 25.90. Bitcoin is trading near 31k and ETH at 2120.
We had Ole Hansen here in Zurich yesterday and he outlined a bullish case for commodities at a great event with Tastenwerk.
Today we are expecting a lot of data points that hits a fairly nervous and still a little illiquid market so it may be a very interesting day. The Swedish, French and Spanish CPI at 8:00, 8:45 and 9:00, at 14:30 the US Retail Sales followed by Capacity Utilization at 15:15 and the University of Michigan Sentiment at 16:00.
Three big banks(Citigroup, JPMorgan Chase and Wells Fargo) and Blackrock report earnings today that will be closely watched after the banking crisis. Disappointing results would signal tighter credit conditions.
Our Mads Eberhard wrote on ETH: Roughly one and a half years after Ethereum holders started staking Ether, they may now unstake to make their Ether accessible following the Shanghai hard fork. The day has been feared by the market, as it would allow 19.2mn Ether to be unlocked in the foreseeable future. However, at first sight, it appears that fewer than expected want to unstake, leading Ethereum to a nearly 5% gain in 24 hours, so Ethereum trades above $2,000 for the first time since August 2022.
Trade Safely.
A new fragmented world order can render some of today's infrastructure obselete, but it also calls for massive new investments across the globe, which requires a new set of strategic and tactical investment strategies.
Steen Jakobsen,
Chief Investment Officer
As globalisation turns to fragmentation, China seems set on playing a role in the global economy, while simultaneously working towards proofing its own economic situation from external shocks and crises.
Redmond Wong,
Market Strategist
The recent bank runs and ensuing challenges are reminicent of something we've seen before. Will it end like the S&L crises of 1986 and 1995?
Chris Dembik,
Head of Macroeconomic Research
Equity markets need to recalibrate to another - fragmented - global world. What's your view on equities in this market - are they going up or down?
Peter Garnry,
Head of Equity Strategy
With every development comes new opportunites, some of which could be in India. Have you considered the country as a part of your diversification strategy?
Charu Chanana,
Market Strategist
A collar is an option strategy that allows some protection while maintaining some upside potential. What investment would you like to use a collar strategy for?
Hans Oudshoorn,
Trainer Academy
There are arguments to be made for many commodities to have upside. Which are you paying the most attention to this quarter?
Ole S. Hansen,
Head of Commodity Strategy
In a very challenging macro environment, which currencies do you think will come out on top?
John J. Hardy,
Head of FX Strategy