Erik Schafhauser Zürich Erik Schafhauser Zürich Erik Schafhauser Zürich

Morning Brew July 27 2021

Morning Brew 1 minute to read
Erik Schafhauser

Senior Relationship Manager

Summary:  USD Falliung ahead of expiry

Good Morning

We have a quiet day ahead in terms of data except for the EUHICP at 11, expected at 6.1+ and the University of Michigan sentiment at 16:00 expected at 60. It seems, marketswill not be calm: US Interst rates are falling and weighing on the USD.

The USD Index fell to below 103 with EURUSD above 1.09 (1.0950, GBPUSD is at 1.28 and gold and Silver are extremely volatile. Silver traded 24.45 on Tuesday , fell to 23.25 yesterday and is now at 23.95. Gold is back at 1962 after testing the 1930 support yesterday. The Bank of Japan left rates unchanged and the Governor of the BoJ is currently on the wires. The ECP sounded rather hawkish yesterday as it hiked by 25 BPS and pulled the Deposit rate to the highest rate since 2001

Equities are friendly with the US 500 at 4425, the US TECH 100 NAS at 15180 and the GER40 at 16320. Nvidia closed near the high yesterday at 426, Apple 185 and Tesla 255. Nvidia is trading with a P/E above 200 and a Price Sales of above 40.

While the stock market rise seems like bubble territory, that does not necessarily mean we need to correct immediately so trade carefully.

Trade safely!



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