All Eyes Are On The Japanese Yields, US Crude Oil Rallies
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Earnings season kicked off last Friday when the big US banks reported their Q4 results. The results were mixed. But overall, despite the skyrocketing inflation, and slowing economy, the banks continued raking in the dough…
US banks
Further good news is that, the major US banks said that they all expect ‘mild recession’, and that unemployment in the US would rise to between 4.9 and 5.5% depending on who is talking- fueling dovish Federal Reserve (Fed) expectations and the equity bulls.
Forex
In the FX, all eyes are on the Japanese yields, and the yen, as last week saw the 10-year JGB yield go past the Bank of Japan’s (BoJ) 0.50% ceiling, boosting rumours that the BoJ could abandon the YCC policy.
In Europe, the euro shines brighter with every ray of sunlight that pushes away the risk of energy shortage and recession.
In the US, a warning from Treasury Department that the US will reach the debt limit on January 19th and will need extraordinary measures from Congress to avoid a government default, is weighing on the US dollar, while boosting appetite in gold.
Energy
And, in energy, US crude cleared the 50-DMA to the upside last Friday.
Watch the full episode to find out more!
- 0:00 Intro
- 0:48 Mixed US bank earnings support stock rally
- 4:03 Japanese yen bid on hawkish BoJ expectations
- 6:14 Fed doves, warnings of US default weigh on USD, boost gold
- 8:12 US crude rallies past 50-DMA
- 8:43 Euro shines brighter with every ray of sunlight
Ipek Ozkardeskaya
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.
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