Roses are red, violets are blue, you may not reach 2% this year too. | MarketTalk: What’s up today? | Swissquote

Show notes

The market has been very quick in swallowing and digesting this Tuesday’s less than ideal inflation data from the US. Yields and the USD retreated, stocks rebounded. Tech led the rally.
But the rate cut expectations are being scaled back in the US, and a further appreciation in the US dollar could also get the other central bank doves on their knees. This is certainly why the EURUSD has a limited potential at the current levels. Elsewhere, the USDJPY struggles to find sellers after the news that Japan entered recession in Q4 – and they still have negative rates. The Japs are now out threatening that they will intervene if the selloff got worst. So be careful.
In energy, prices are not yet threatening inflation. The barrel of US crude fell sharply, after trading above the 200-DMA, as the latest EIA data printed an 8.5-mio barrel increase in oil inventories last week. Nat gas futures continue to dive as well, driven by soft demand, record high production, ample supplies, and mild winter both in Europe and the US.
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