The three major US indices fell on Tuesday, the US yields spiked, and the dollar extended rally, as Americans returned from their Labor Day break. Europe opened in the negative. The rising yields helped the US dollar extend rally, of course. The US dollar index is now above the 110 mark; the USDJPY spiked to 144, the EURUSD slipped below the 0.99 mark, the pound failed to hold the 1.15 support, and gold is now below the $1700 level, again. Bitcoin on the other hand accelerated the selloff, and is now below the $19K mark, as the bears are eyeing the June support of around $17500.
The stronger dollar is a growing headache, and we want to believe that the USD rally cannot continue forever, but if history is any guide, the US dollar could strengthen way more than now. If we go back to 80’s, when Volcker was hiking the interest rates at great speed to tame inflation, the US dollar also got very VERY strong. And unfortunately, other central banks’ hawkishness doesn’t tame the dollar appetite. The Bank of Canada (BoC) is expected to hike ‘big’ for the 4th consecutive meeting today, and the European Central Bank (ECB) is expected to raise its rates by 75bp tomorrow. But the euro looks bad, and the Loonie doesn’t look any better. In equities, everyone in Europe talks about the upcoming Porsche IPO, while Apple fans are holding their breath to find out the new iPhone14!
Watch the full episode to find out more!
0:00 Intro 0:22 Equities down, US yields & USD up 2:42 How far could the US dollar rally extend? 5:38 BoC, ECB to hike rates 6:28 US crude tests important support 7:05 Porsche will go public soon! 8:25 Apple reveals new iPhone today! 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 #rally #BoC #ECB #rate #hike #USD #EUR #GBP #JPY #CAD #Gold #XAU #Bitcoin #energy #crisis #crude #oil #Porsche #IPO #Apple #iphone14 #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
