Erik Schafhauser Zürich Erik Schafhauser Zürich Erik Schafhauser Zürich

Morning Brew June 7 2023

Morning Brew 1 minute to read
Erik Schafhauser

Senior Relationship Manager

Summary:  Slow Trading on lack of clues

Good Morning,

The Market seems relatively free of inspiration at the moment. There is little in terms of fundamental data and few earnings this week, next will be a different story with the US CPI, the  FOMC, as well as the  ECB rate decision.

Key Indexes moved little yesterday, the most noteworthy moves were the Russel 2000 which added 2.7%, the Regional Bank Index gained more than 5% while Coinbase lost more than 12% on the lawsuit by the SEC.  AMD added 5%.

In FX, the USD Index hovers around the 104.10 with EURUSD at 1.0685, GBPUSD is 1.2420 and USDJPY 139.20. Gold and Silver are at the same level as yesterday at 1962 and 23.54.

Outlier in FX is the Turkish Lira which is looking like in parabolic decline at now almost 23 Lira per USD:

The question here is what to do…

  • wait for next week for fairly certain volatility
  • go long volatility and bet on a coming move. With the VIX Future at 15.5 and 1 month ATM EUR vol at 6.5% this looks attractive
  • employ yield enhancing strategies such as covered calls and sold puts to generate additional income
  • generate passive income with account interest – it may be worth optimizing your currency balances at USD pays up to 4.25% without holding periods or limits.

Chinese data was mixed overnight, exports disappointed severely at -7.5% against an expected drop of 0.4% while imports only declined 4.5% vs an expected drop of 8%.

The rest of the day, the Swiss FX reserves will be of interest, as well as the Baank of Canada Rate decision at 9:00 and 16:00 respectively.

Wednesday 7 June

DE Industrial Output
UK House Price Index
CH FX reserves
CA Rate decision

Thursday 8 June
US Jobs Data



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 (
Full disclaimer (
Full disclaimer (

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

Contact Saxo

Select region


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.