US GDP Ahead, Energy Prices Push Lower, EUR/USD Pair Struggles
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Hawkish were the minutes from the latest FOMC meeting. They confirmed that the Federal Reserve (Fed) officials are indeed not lying when they say that they will continue hiking the interest rates to tame inflation toward the 2% mark.
US and China
Both the US 2 and 10-year yields bounced lower from early-week highs. A part of it was perhaps explained by the rising tensions between the US and China after China said that their relationship with Russia is ‘rock solid’.
Stock market
The S&P500 eased another 0.16%, Nasdaq tipped a toe into the bearish consolidation zone, but US equity futures are in the positive this morning, as the tech-heavy index is boosted by an almost 9% jump in Nvidia shares in the afterhours trading, after the company announced soft, but better than expected results.
US GDP
Due today, the US GDP is expected to have expanded 2.9% in the Q4, which is a fairly strong number. A read above expectations will certainly boost the Fed hawks on the idea that the US economy is resilient enough to withstand more hikes, while a number below expectations could ease the hawkish Fed tensions.
But the days when bad news was good news are gone. At this point, we can’t really bet that a soft growth would soften the Fed’s hand. Only soft inflation could do that.
Watch the full episode to find out more!
- 0:00 Intro
- 0:25 FOMC minutes confirmed hawkish stance
- 2:50 Nvidia results help Nasdaq shake off post-minutes moodiness
- 4:12 But could the US stock rally extend?!
- 6:30 Watch US GDP update today
- 7:30 USD consolidates gains, EURUSD struggles
- 8:27 Energy prices push lower
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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