FX Trader, Loonieviews.net
Summary: UK politics have sucked the trading energy out of FX markets.The US dollar is a touch firmer against the G-10 majors except for CAD, EUR and GBP, which are close to unchanged since the New York open.
USDCAD is getting a modicum of support from higher oil prices while trade talk worries undermine the antipodean currencies as well as the Swiss franc.
Prime Minister Theresa May conceded that her first Brexit plan, which was soundly defeated in the House of Commons, was a non-starter. Before that vote, she warned that the only alternatives to her deal was no deal or staying in the EU. Today she announced another alternative. It is reopening the withdrawal agreement with the EU (something which the EU has already ruled out). Also, today MPs are voting on both the Brady and the Cooper amendments, according to the Guardian. Then there will be another vote in a couple of weeks.
Wall Street opened flat to modestly higher in a cautious start to the session. Traders are waiting to see how the US Justice Department's actions against Huawei Technologies affects the US/China trade negotiations that start today. Treasury Secretary Mnuchin says Huawei and the Trade talks are two separate issues. Media reports from China beg to differ.
Apple (APPL: Nasdaq) fiscal Q1 earnings report is released after the close of business today. Traders are wondering if the downgraded revenue projections announced a month ago is all the bad news or whether the outlook has taken a turn for the worse. The stock is marginally higher in early trading.
UBS and Elon Musk have one thing in common; both want to sell Tesla. Musk wants to sell Tesla cars while UBS recommends selling Tesla share. UBS analyst Colin Langan cut his price target by $10.00/share to $220.00, yesterday. Wall Street traders ignored the news, preferring to wait for (TSLA: Nasdaq) Q4 results due tomorrow.
The market is trying to get back to the pre-Covid and pre-war times, but that model is broken. A new dawn is here and the financial world needs to adapt.
Steen Jakobsen,
Chief Investment Officer
A political switch in China towards less tough control of its people and companies may kick things back into gear.
Redmond Wong,
Market Strategist
While the economic situation in Europe may not be as bad as feared, there's still a plethora of things to fix.
Chris Dembik,
Head of Macroeconomic Research
As the world turns increasingly bipolar, equity markets face harsh times as they transition into the new reality.
Peter Garnry,
Head of Equity Strategy
New alliances and collaborations outside of China may lead to prosperous times in Asia.
Charu Chanana,
Market Strategist
For years, it was thought that the balanced portfolio was a thing of the past. But recent developments may have changed that.
Peter Siks,
Investment Coach
Following a dramatic and volatile 2022 with good returns, a lot of this year's commodity performance may be driven by Chinese politics.
Ole S. Hansen,
Head of Commodity Strategy
2023 could be a tough year for currencies but EUR and JPY may have some upside.
John J. Hardy,
Head of FX Strategy
The commodity-heavy Australian market may have a good start to 2023, as the Chinese focus on growth signals demand for Aussie resources.
Jessica Amir,
Market Strategist
From a near-perfect environment for speculative assets before 2022 to the opposite, crypto faces fundamental challenges.
Mads Eberhardt,
Cryptocurrency Analyst
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