Fed hawks may not let the equity rally extend! | MarketTalk: What’s up today? | Swissquote

Podcast: BoJ losing control. Geopolitical risks for Tesla

The US equity markets rallied yesterday after taking over a positive session from the Europeans. However, the US retail sales data didn’t necessarily hint at slowing spending, and Jerome Powell didn’t say things that investors would normally like to hear. Powell’s words didn’t hit the investor appetite immediate, but mixed activity in US futures hint that appetite may not remain as strong in the coming sessions. In the FX, the US dollar eased from two-decade highs.

Gold trades around the $1800 mark and crude oil bumps into solid topsellers approaching above the $115pb

 

The EURUSD rebounded past the 1.05 and Cable traded past 1.24. Yet, prospects of higher US rates, and the positive divergence between the Fed and other central banks should prevent the dollar from falling significantly. Eurozone’s final inflation data is due today, and should confirm a rise to 7.5% in April, an eye-watering number which should keep the European Central Bank (ECB) hawks and the euro bulls alert, and help the single currency consolidate its latest gains against the US dollar. Gold trades around the $1800 mark and crude oil bumps into solid topsellers approaching above the $115pb. On the earnings front, the US retailers reveal mixed earnings but they all agree on one thing: inflation impacts activity.

Watch the full episode to find out more!

  • 0:00 Intro
  • 0:22 Market update
  • 2:06 Jerome Powell is decided to bring inflation down!
  • 2:48 High EZ inflation to keep euro bulls alert
  • 3:41 ...but the dollar may not ease much!
  • 4:42 Gold under the pressure on rising rates
  • 5:31 Crude oil bumps into topsellers past $115pb
  • 6:47 US retailers reveal mixed results, but agree that inflation is an issue

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Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.

Podcast: BoJ losing control. Geopolitical risks for Tesla

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