"The trade war headlines have come full circle," reports Saxo Bank Head of FX Strategy John Hardy. In this case, of course, 'full circle' means a return to President Trump's initial aggressive stance with the administration prepared to more than double the planned tariffs on $200 billion in Chinese imports in an attempt to get Beijing to the negotiation table.
In the forex space, Hardy notes the dollar's continued strength despite a slight June PCI inflation miss with the JPY as the largest mover in the wake of Monday's Bank of Japan meeting.
"The BoJ's ultra-loose policies are set to continue," says Saxo fixed income specialist Althea Spinozzi, who adds that governor Kuroda 'blinked' in the face of market pressure and let the 10-year Japanese government bond yield fluctuate 20 basis points around zero.
"The JPY weakness followed the initial plunge in JGB yields," says Hardy, who adds that the yield move – but not that of the currency – has since retraced.
In stocks, Apple shares gained 4% after hours following a strong earnings release while in the commodities space, Saxo Head of Commodity Strategy Ole Hansen says that trade war fears appear to be offsetting supply risks in crude oil while gold remains significantly correlated to CNY with key support at $1,210/oz.
Quarterly Outlook Q3 2022: The Runaway Train
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Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
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