Erik Erik Erik

Morning Brew January 20 2022

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Summary:  Nasdaq in correction, Precious metals shine


Good Morning

Nasdaq is now officially in correction territory after indexes give up more ground, the Dow closes - 0.96%, the S&P -0.97% and the Nasdaq -1.15%. Tesla is again below 1000. It is the 66th correction of the Nasdaq ever and officially starts when the index is 10% off the high.

China cut key rates over night, turning Indexes higher by app. 0.5%.

US Yields remain high with the 2 year above 1% at 1.07, the 10 Years at 1.86. The German 10 year breached the 0 yesterday but fell back below, currently -0.005. If we rise, 0.05 and 0.1 are resistances.

Oil hovers near the 2014 highs as supply remains a worry.

The USD Index is trading at 95.53, EURUSD is back in the 1.12/1.14 range after the breakout higher failed on higher US Yields, GBPUSD 1.3625 and Oil currencies such as CAD remain strong.

Precious Metals rallied and pulled miners with it, Platinum rose as much as 6.3% yesterday, back above the 1000 to trade at 1030 now. Gold took the initial crucial step for all fans of the metal and breached the 1835. 1860/70 are the important level ahead of the 1900/10. Silver breached the 24 and is struggling with 24.20. 24.50 and 25 are the next levels. Watch that the trade does not get too crowded.

The Turkish Lira will be interesting to watch today at noon, the rate decision is scheduled today and the market is expecting a hike by 25 basis points with a probability of 100% acc. to Refinitiv. Currently we are at 13.50 against the USD. Remember the Margin Change in the Lira tomorrow.

President Joe Biden failed again to push through his voting right change, further weakening his standing.

Top Earnings today are Netflix, and American Airlines,
Economic events are 
German PPI at 8:00 Austria CPI at 9:00, EU at 11:00, the Norwegian Rate decision at 10, US Employment data as well as the the Philly Fed at 14:30, Existing Home Sales at 16:00.

Expiries
Physically Settled Futures:

CLG2 will expire 20th January 2022 at 16:00 GMT.

ECOG2 will expire 23th January 2022 at 10:00 GMT.

NGG2G2 will expire 27th January 2022 at 10:00 GMT.

GCG2, MGCG2 will expire 28th January 2022 at 16:00 GMT.

Expiring CFDs:

NATGASUSFEB22 will expire 25th January 2022 at 16:00 GMT.

INDIA50JAN22 & TAIWAN95JAN22 will expire 27th January 2022 at 02:00 GMT.

GASOLINEUSFEB22, GOLDFEB22 & HEATINGOILFEB22 will expire 27th January 2022 at 16:00 GMT.

CHINA50JAN22, HK50JAN22 & SINGAPOREJAN22 will expire 28th January 2022 at 02:00 GMT.

 

 

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.