The US inflation report was ugly. Inflation in the US advanced to 9.1% in June, from 8.6% a month earlier and boosted the idea that the Federal Reserve (Fed) won’t hesitate to continue its aggressive rate increases to abate inflation. Pricing on Fed funds futures now gives more than 80% chance for a 100bp hike at the next FOMC meeting. The US dollar index consolidates above the 108 mark, and the EURUSD continued flirting with parity. Gold dived to $1707 per ounce yesterday, and crude oil tipped a toe below the 200-DMA, near $93pb.
The equities came under pressure, but the selloff remain limited. Elsewhere, the Bank of Canada raised its rate by 100bp yesterday, sending the Canadian stocks lower, and the loonie just a little bit higher against the US dollar. JP Morgan and Morgan Stanley will go to the earnings confessional today, BlackRock, Citigroup and Wells Fargo are due to release their earnings tomorrow. And Twitter shares swing up and down on disappointment that Elon Musk no longer wants to buy Twitter for $54 a share, and hope that the court will force him to do so!
Watch the full episode to find out more!
- 0:00 Intro
- 0:26 Rising US inflation boosts hawkish Fed expectations
- 2:42 Market update
- 5:13 EUR, GBP under the pressure of strong US dollar
- 7:20 Big banks to start releasing earnings
- 8:25 Twitter jumps as Musk could be forced to buy Twitter
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. #USD #inflation #Fed #100bp #rate #hike #EUR #GBP #CAD #BoC #XAU #gold #crude #oil #bank #earnings #JPMorgan #MorganStanley #Twitter #SPX #Dow #Nasdaq #investing #trading #equities #stocks #cryptocurrencies #FX #bonds #markets #news #Swissquote #MarketTalk #marketanalysis #marketcommentary _____ Learn the fundamentals of trading at your own pace with Swissquote's Education Center. Discover our online courses, webinars and eBooks: https://swq.ch/wr _____ Discover our brand and philosophy: https://swq.ch/wq Learn more about our employees: https://swq.ch/d5 _____ Let's stay connected: LinkedIn: https://swq.ch/cH