May is finally over, but inflation worries, the war, and high energy prices welcome the new month with us. Yesterday’s meeting between Joe Biden and Jerome Powell reminded investors that inflation is the policymakers’ primary concern, and both Biden and Powell will do anything in their power to fight soaring inflation.
But high energy prices remain a major worry. The good news is that the kneejerk reaction in crude oil to European ban of Russian oil imports remained capped near the $120 mark. The bad news is, Russia started cutting off the gas of more European countries as a response to the European ban on its oil exports, pressuring energy prices higher. US futures hint at a positive start to the month, but the gains are vulnerable to inflation fears, geopolitical tensions, and the positive pressure in energy prices. On the individual front, AMC surfs on positive vibes from Top Gun Maverick, GameStop to release earnings, HP topped estimates, as Salesforce upgraded profit forecast.
In the FX, the dollar index rebounds above the 102 mark this morning, but the upside potential will likely remain limited from here. Energy and commodity currencies look appetizing. So, don’t forget to keep an eye on Loonie, as the Bank of Canada (BoC) will likely raise its overnight rate by 50bps at today’s meeting.
Watch the full episode to find out more!
- 0:00 Intro
- 0:16 Market update
- 2:12 Crude rally remains capped after new Europe sanctions, but...
- 4:00 The state of mind
- 5:30 AMC rallies, as HP, Salesforce, GME price latest results
- 7:02 Amazon up before 20-to-1 split
- 7:38 USD rally to slow, energy currencies to recover
- 9:23 BoC to raise overnight rate by 50bps
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.
