The Dollar is King! | MarketTalk: What’s up today? | Swissquote

ECB stuck in sequencing | ING Economics

The selloff in stocks, bonds, and Bitcoin deepened on Monday. Even commodities sank and crude oil tumbled more than 8% on the back of mounting worries of a seriously tighter, and potentially ineffective Federal Reserve (Fed) policy that would, to fight back the skyrocketing inflation, pull back support aggressively enough to cause recession. Goldman says the S&P500 could fall to 3600 in case of contraction. Another worry is that, even with a significantly tighter monetary policy, the Fed may not be able to tame inflation as much as desired. This is what the inflation expectations tell us. The S&P500 dive another 3.20% yesterday, as Nasdaq tanked another 4.30%. And money doesn’t flow to ‘safer’ US sovereign bonds, as investors are rapidly unloading the US treasuries as well, given the Fed is now letting its holdings mature to reduce the size of its balance sheet which went through the roof since the 2007 subprime crisis. The US 10-year yield hit 3.20% yesterday, the highest level since November 2018.

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Gold lost more than 1.50% along with the everything rout yesterday and Bitcoin slipped shortly below the $30K level. The yen and the Swiss franc depreciated against the US dollar, as well. So, where does the money go? To the US dollar – the safest of the safe haven assets. But, there is one potential catalyzer this week, that could eventually slow down the market selloff: US inflation data due Wednesday. The consumer price index is expected to have eased to 8.1% in April from 8.5% printed a month earlier. A softer inflation is the only thing that could give hope to investors.

Here is the link to the Medium blog article:

Watch the full episode to find out more!

0:00 Intro 0:25 Market selloff intensifies 3:03 Gold & Bitcoin fall along with traditional risk assets 4:29 Safe haven currencies fall, as... 4:55 ...the US dollar is the safest safe-haven 7:32 Goldman cuts its S&P500 price forecast 8:42 Soft US inflation could reverse sentiment in the short-run 9:09 ... but perhaps not for Rivian.

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.

ECB stuck in sequencing | ING Economics

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