The Federal Reserve (Fed) ‘magic’ didn’t last long, and the US stocks recorded the worst day of the year yesterday, after posting the biggest gains of the year the day before, under the pretext that the Fed wouldn’t raise the rates by 75bp. Bitcoin didn’t resist to the risk selloff and dived near $35500 mark for the first time since February.
Even Gucci’s announcement that it would accept payments in cryptocurrencies couldn’t improve the mood. Energy stocks did better than their peers yesterday, as the barrel of US crude extended gains past the $110 on the back of timid production target increase from the OPEC, and the European plans to ban the Russian oil and gas gradually to the end of the year. Now, all eyes are on the US jobs data. Even though the Fed will turn a blind eye on softening jobs data in the coming months to focus on its fight against inflation, a strong NFP data could further revive the Fed hawks and the prospects of more aggressive Fed over the next couple of meetings, whereas a soft data could bring in some Fed doves. US dollar remains strong, EURUSD is down below 1.06 on scary plunge in German factory orders, Cable is hit by higher inflation and sooner recession warning, and Turkey is hit by 70% (official) inflation.
Watch the full episode to find out more! 0:00 Intro 0:26 Big market selloff a day after the post-Fed rally! 2:34 Bitcoin down 3:44 Energy outperforms 4:56 Don't count on NFP to improve sentiment 6:46 Macro round up: euro, pound down 8:26 Turkish inflation hits 70% (unofficially 156%)! 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.