422 days ago
WTI Crude oil has staged a strong rebound since we highlighted it last week. The banking stress had worried traders about the demand outlook but after regulators stepped in to help Credit Suisse and US banks, the market has been regaining confidence. Dollar weakness, a day after the Fed hiked interest rates to 5%, is also helping WTI Crude climb above $71pb.
430 days ago
The dollar is coming back as predicted in light of still very attractive yields versus the Swiss franc or the euro. The reversal today is triggered or accelerated by worries about Credit Suisse, but really it is simply a reversal of flows that have sold off the dollar recently. Interestingly, 2-year US Treasury yields are diving 18bps today, and the dollar index is still up 0.9%! The USDCHF had a strong bounce off its support at around 0.91. Traders could expect it to revisit 0.93 - 0.93.5 or possibly stay at these levels, but a sudden drop is unlikely given the sticky US core inflation and wide yields differential with the CHF.
430 days ago
We are having the most stress in US financial conditions since late September. Financial stocks have lost $465bn in market value, per Bloomberg. Historically speaking, this has shown to be a good time to buy stocks, given a long-term time horizon.
431 days ago
There is a possible reversal setting up in the EURUSD pair after the bullish spike on Friday. The possible retracement could come in light of the dollar strengthening. The US inflation number could add to volatility.
