Erik Schafhauser Zürich Erik Schafhauser Zürich Erik Schafhauser Zürich

Morning Brew February 17 2023

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Summary:  Hawks boost the USD


Good Morning, 

Please be aware that Monday is a US Market holiday

A higher PPI and hawkish Fed speakers let interest rate expectations rise and spark the expected market reaction of lower stocks and a higher USD. 

The Bullard and Mester were speaking for a more aggressive Fed path, the probability of a 50 BPS hike in Marc rises slightly to 13 from 10% ant eh peak rate rises to 5.28% in July. The year end rate is seen at 5.10.

Equities drop with the US500 at 4070, the US 30 33600 and the UStech100 12370. The GER40 is at 15440.

The USD Index rises to 104.45, EURUSD 1.0637, GBPUSD drops below 1,20 and USDJPY seems to be approaching the 135. Gold and Silver are under pressure at 1822 and 21.35.

UK retail sales came better than expected this morning, and from here the French CPI ant he US import Prices are possibly interesting, otherwise it should be a quiet day ion terms of releases and sentiment will be key.

Will the lower levels spark some buying interest or fear or lower levels? With more than a moth to the next FOMC meeting, a lot can happen to change the picture either way.

Trade safely.-

Expiries

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