Erik Schafhauser Zürich

Morning Brew January 13 2020

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Summary:  USD weak after US CPI


Good Morning

 The US CPI came as expected and traders had apparently expected an even higher number. US Inflation is at the highest since 1982! Despite this, Stocks rose moderately and the USD lost ground. The overall expectation is that with inflation running in line with expectations the FED will not be required to speed up tightening more than already priced in.

US indexes closed higher but none of the indexes rose by more than 0.3%. and markets are getting ready for the earnings season. Tomorrow Citigroup, JP Morgan  and Wells Fargo will report earnings.

The USD index fell to 95 a new low since November as 10 year yields fell to 1.74, EURUSD rose to 1.1440 and out of the 1.12/1.14 range, GBPUSD rose to 1.37 further assisted by the pressure on Boris Johnson, USDJPY  fell below 115 and Gold and Silver are at 1825 and 23.10. 1835 remains the line in the sand that needs to fall for significant potential.

Bitcoin gained to 44000, 10% off the lows.

Ole Hansen points out the strong start  Industrial metals had to the new year

 The industrial metal sector has, just like crude oil, started 2022 with strong gains led by

nickel and aluminum, and following months of sideways trading, copper is now also

showing signs of breaking higher. The prospects for rising electrical vehicle demand, tight

supplies and signs China is stepping up its policy response to a slowing economy have all

helped reduce some of the macro risks that has weighed on the market in recent months,

especially those stemming from China’s beleaguered property sector.

Copper broke the resistance at 450 and has significant upside potential if it can hold the level.

Boris Jonson is under pressure after he was forced to admit that he attended a party during the lockdown in December 2020 and the  calls for his resignation are fairly loud.

Taiwan chip firm TSMC posted on Thursday a 16.4% rise in quarterly profit to a record, making apple look promising as they are a major supplier.

Today US Data at 14:30 is of significance, the usual employment data as well as the PPI are being releases. Over Night we will receive the Japanese Corporate Goods Prices and Chinese Trade data.

 

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.